Euro FAQsIs it necessary to re-enter into insurance contracts signed before € Day?
No, it is not. Insurance contracts will remain valid on the same terms and conditions, only the amounts indicated in kroons will be adjusted using the central exchange rate of the Bank of Estonia – 15.6466. Therefore, insurance contracts entered into before € Day need not be changed.
Can I pay insurance premiums in kroons after 01.01.2011?
Yes, it is possible for cash payments for two weeks. There will be a two-week parallel circulation period after € Day when cash kroons and euros will be equally acceptable means of payment. You can pay both in kroons and euros, but the change, as a rule, will be given only in euros. Starting from € Day, bank transfers may be made only in euros.
If I have entered into an insurance contract in 2010 in kroons, how do I know the amount of my insurance premium in euros?
Since July of this year, ERGO has added to its payment notices/bills parallel price quotations in euros. Thus, the recipient of a bill may check the payable amount on a payment notice/bill sent to them by ERGO.
What excess options will I have after the insurance contract’s update after € Day?
At the signing of an insurance contract, ERGO offers customers excess options in the amount that is easier for a customer to remember. Euro cents are not used for excess amounts.
If the loss event procedure started before € Day, shall the insured person take any additional steps and if yes, which?
Not, they shall not. The arrival of € Day will not affect the substance of loss event procedures. If an indemnification claim was filed in kroons, damage will be indemnified in euros using the central exchange rate of the Bank of Estonia, i.e. 15.6466 kroons for one euro.
Will ERGO raise prices after € Day?
ERGO will not raise prices because of the introduction of the euro. ERGO Kindlustuse AS, ERGO Elukindlustuse AS and ERGO Funds AS have joined the fair pricing agreement.
In payment calculators available on ERGO’s website, our customers may check parallel prices of insurance premiums in euros now. All payment notices/bills sent to customers also indicate parallel amounts in kroons and euros.
What will happen to the pension pillars and pension payments after the transition to the euro?
The net asset values of shares in ERGO’s pension funds of the second and third pillars will be displayed in euros starting from 1 January 2011. The funds mostly invest in securities nominated in other currencies. Until 31 December 2010 net asset value is based upon the exchange rate of the Estonian kroon to other currencies; as of 1 January 2011 the net asset values of both funds and shares will be based on the exchange rate of other currencies to the euro. Estonian kroons in investment funds will be converted to euros using the central exchange rate of the Bank of Estonia and it will not cause a change in the value of shares and accumulated pension assets. The funds’ charges will not change after the transition to the euro, because the charges are fixed as a percentage of the value of assets or transaction. In the terms and conditions of the funds, the nominal and limit values of shares that are presently indicated in kroons will be changed. The nominal value shows the price of a share when the fund was established and it is unimportant for later prices. New terms and conditions will be published on ERGO’s website. Pension payments will be converted automatically to euros using the central exchange rate, and ERGO customers will not need to contact their banks or change their payments themselves because of the transition to the euro.
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