УДРУЖИВАЊЕ ОСИГУРАВАЈУЋИХ ОРГАНИЗАЦИЈА И ПРАВНИ ПОЛОЖАЈ ЊИХОВОГ УДРУЖЕЊА
ASSOCIATION OF INSURANCE ORGANISATION AND LEGAL STATUS OF THEIR ASSOCIATIONS

Summary/Abstract: The Insurance Organizations’ Association of Yugoslavia has been established in 1968 on an optional basis, first of all in order to perform affairs of joint interest, to promote work and business activity and to represent Yugoslav insurance abroad, namely in international organizations in the field. The highest body of management is the Assembly of the Association of delegates of the members who send three delegates each, one of whom is the director general, so that the Executive Board is staffed by directors of all insurance organizations. The Association had the status of a general association and it was a member of the Economic Chamber of Yugoslavia. However, with the new Law on Associating into the Economic Chamber of Yugoslavia, which entered into force on May 5, 1986, the formation of associations has been set on an entirely different basis within the framework of the Economic Chamber of Yugoslavia. In such a way the Insurance Organizations’ Association of Yugoslavia has been neglected and remained outside the establishment of the above kind, namely it was not incorporated into the Economic Chamber of Yugoslavia and had lost the status of a general association. The insurance business according to the federal regulations, although designed according to a unified conception, departs in practice to quite a degree of such unification. Insurance organizations are, namely, divided into separate entities in terms of territory, depending on the republics and provinces, although, in essence, the business of insurance is based on the idea of associating, mutuality and solidarity and in spite of the requirement of adjustment of risks (in terms of time) and in as larger space as possible. Yugoslav insurance business is on the margins of social events, but socio-economic importance of insurance, due to its specificities, requires a treatment which would be analogous to some great systems in the sphere of economy. In such a way, the existing legislative solutions for that economic activity which is significant for the society in general are not adequate. There are shortcomings and open issues in the self-management way of associating. That associating realizes only a certain degree of integration, so that its role is not as significant as it should be. This is reflected on the functions of the Associations, so that it does not meet its duties regarding efficient business and development of insurance. One of the Association’s functions relates to its 'being a national bureau for Yugoslavia within the system of green and blue insurance certificates — which is of international character, so that there is a request that the Association be recognized by the SFRУ Government. That circumstance solely is sufficient for existing of the duty of compulsory associating of insurance organizations — which is not the case at present. It is generally concluded that the conditions are ripe to introduce necessary changes in the system. While limiting oneself only to the present-day issue of the status of the Association, it has been proposed that associating be of a compulsory nature of the insurance organizations, which would require some changes in article 43, paragraph 1 of the federal law in the matter. This would contribute in any case to better functioning of the Association and would strengthen its position as the national bureau in international relations. Such a solution has already been accepted for the banks and other financial organizations in the Law on Banks, which was enacted in 1985. In addition, an association which was established on a compulsory basis is automatically associated into the Economic Chamber of Yugoslavia, which is otherwise regulated by article 1, paragraph 4 of the corresponding law, where now there is no adequate provision regarding the insurance organizations of Yugoslavia.

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