I owe to my insurance agency. How can I deal with the KEAO?

Αποτέλεσμα εικόνας για Κ.Ε.Α.ΟThe failure to pay contributions to the insurance funds is only an aspect of the general weakness in the settlement of fixed financial obligations. However, it was not expected conflicts to arise between the insured, who has debts, and more than one institution- representatives of the social security system, who can at any time claim the social security payment by all legal means.


A typical example is the Center for the Collection of Insurance Benefits (KEAO) established by the provisions of article 101 of L.4172/2013. As many insured persons already know, the arrears of IKA-ETAM and those of OAEE are transferred to the KEAO, as well as the debts of the OGA and the ETAA. Debts to be transmitted must be unregulated, over € 5,000 (primary debt and any charges) and not suspended. The same applies to debts that have become chargeable due to non-compliance with previous regulations. Other debts remain in the already existing insurance institutions and are collected by them.

KEAO is responsible to inform the debtor about his debt (by phone, letter, sms or e-mail) and, if he does not respond, then an individual notice is sent. This individual notice, which is sent within one month of the date when the liability assurance instruction was sent to the KEAO, informs the debtor that he has 20 days to pay or settle the debt. After this period expires, and provided that the debtor failed to pay or settle his debt, the services of KEAO may take enforcement measures against KEDE.

At this point it should be noted that, at any stage of the debt recovery process, the debtor has the chance to settle it. In case the debts are in insurance organizations, they are settled by the funds, while, after they are transferred to the KEAO (where surcharges continue to apply), their settlement is handled by KEAO. However, the question arising, since the majority of the insured persons is unable not only to pay the debt but also to settle it, as the future installments are not enough to service their debt, is how this objective weakness, due to unfavorable economic conditions, can be opposed to KEAO.

In such a case, it seems that an appeal before the Court of Justice is inevitable, given that the relevant legislative framework provides for the protection of an insured person with debts. It is up to each lawyer’s strategy then to decide which legal basis will be invoked and in which court the application will be filed, always according to the applicable provisions and procedural procedures.

It should also be pointed out, that through judicial decisions a particularly positive development took place in the direction of the effective protection of the insured persons, who have been hit by the economic crisis and are not anymore able to pay their debts. According to these decisions, the judicial execution of individual notifications of the KEAO was suspended, which prevented KEDE from forcing recovery measures against the insured persons and their debts.



George J. Koutsoukos

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