Things are looking up for several countries in the area of bilateral insurance contracts

We are bringing you a summary of new bilateral draft contracts in the area of social security submitted to the Chamber of Deputies and the Senate of the Czech Republic, recommended to the President of the Chamber of Deputies to be included in the meeting agenda of the Chamber of Deputies and thus ready for the first reading.

The conclusion of social security bilateral contracts brings significant simplifications to the states and especially their citizens, or persons to whom the respective contract applies, within the context of international workforce migration. The objective of the contracts is to eliminate conflicts arising during the application of national laws and to avoid benefit entitlement restrictions due to citizenship, residence, or a shorter period of insurance acquired on the state territory. Bilateral contracts fully reflect internationally recognised principles of equal treatment of citizens, elimination of double insurance, aggregation of insurance periods acquired under the legislation of both countries for a pension entitlement and export of benefits, i.e. their payment in an international context.

Social security contracts with the Federative Republic of Brazil

This bilateral social security contract is currently the closest to ratification by the President of the Republic. The contract regulates e.g. the eligibility for insurance in the state of employment with specified exceptions, or the aggregation of insurance periods acquired in both states for entitlement to benefits. However, it deals only with pension insurance, i.e. old-age, disability and survivorship pensions, not with health insurance. The health insurance of migrants will thus not change even after this contract enters into force compared to the current situation, i.e. the legislation of both countries will be followed separately.

Social security contract with Bosnia and Herzegovina

So far, the social security relationships between the Czech Republic and Bosnia and Herzegovina have been regulated by the Agreement between the Federal People’s Republic of Yugoslavia and the Czechoslovak Republic concerning social insurance and by the Administrative Agreement on the Implementation of this Agreement. The new draft contract does not differ much from the currently applied Agreement.

The principal adjustment focuses on healthcare. The Agreement includes provisions on healthcare procurement to the insured of one state in the other state without mutual reimbursements. According to the draft contract, healthcare should be limited to necessary and urgent care and the costs of the healthcare of the insured should be borne by the respective health insurance company.

Social security contract with Mongolia

In addition to participation in insurance, the draft contract regulates only the provision of pension benefits, i.e. providing other benefits (e.g. healthcare, family benefits, or unemployment benefits) is not included.

The draft contracts are based on the principles of coordination of social security systems effective within the European Union, specifically on Regulation (EC) No. 883/2004 of the European Parliament and of the Council on the coordination of social security systems and Regulation (EC) No. 987/2009 of the European Parliament and of the Council laying down the procedure for implementing Regulation (EC) no. 883/2004.

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