After a long legal battle between insurer Link4 and the Polish Chamber of Insurance and Finance Intermediaries (PIPUiF), the court of first instance has ruled in favor of the latter.

Since autumn 2008 the chamber, which unites and provides advocacy for insurance agents, has fought against Link4’s advertisements, in which insurance agents are blamed for high premiums.

The series of ads depicted insurance agents crying over clients who canceled their policies and signed up with Link4.

The Commercial Court in Warsaw questioned the ads, calling them unethical, although Link4 tried to justify them as tongue-in-cheek. The company was ordered to publish three apologies in seven different media outlets and pay zł.100,000 towards the Royal Castle in Warsaw – a figure 10 times lower than what PIPUiF had demanded.

However, the court said the ads were not misleading to customers.

“It is not untrue that agents live off commissions and that Link4 insurance policies [which are sold directly, not through agents] can therefore be cheaper,” the court reasoned, adding that customers are aware of differences when it comes to choosing insurance policies.

A manager at a large insurance company that bases its structure on a network of agents told WBJ that it was obvious that insurance firms selling their policies over the phone or internet can offer cheaper products.

He added that large insurance companies are important sources of employment. “You also have to consider the fact that, thanks to us, these people have jobs as agents,” he said on condition of anonymity.

Link4 is considering appealing the decision.