In mortgage credit agreements entered into by consumers under Polish law, it has become standard practice for security for repayment of the credit to take the form of bancassurance policies. The typical occurrences covered by insurance products of this type are death or complete permanent incapacity for work of the borrower. Provisions in agreements of this kind are monitored however from the point of view of abuse, according to general principles provided for in civil law.

Today a judgement was issued by the Supreme Court in relation to the wording of a provision in an agreement of this kind (case no. IV CSK 711/15). The proceedings before the Supreme Court concerned a cassation appeal filed by a consumer who was a party to an agreement for Group Life Insurance for Mortgage Borrowers, and a bank. In the filing, the consumer and the bank contested rulings issued by courts of consecutive instances finding against them in a dispute with an insurance company.

In its ruling Polish Supreme Court has addressed the principle of transparency applying it to standard contract terms according to the Article 385 § 2 of the Polish Civil Code (text: ISAP).

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