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The Hungarian Automobile Club filed a complaint with the Commissioner for Fundamental Rights, in which it objected to the arbitrariness of the insurance companies’ pricing system. The organization has reported problems with the regulation of the bonus-malus system at the regulatory level and the collection of the so-called pest surcharge.
In his report on the case, Ákos Kozma, Commissioner of Fundamental Rights, pointed out that the regulation leaves the issue of the use of data from the history of claims entirely to the decision of the insurers, which it makes the insurer’s pricing system arbitrary. The Ombudsman also considered that the application of the pecuniary surcharge was generally not objectionable.
In the opinion of the Ombudsman, the regulations do not take into account either the undeniable economic interest of insurers in setting rates or the protection of the interests of consumers who use the public service.
The Commissioner of Fundamental Rights considered that the regulation on the compulsory insurance of civil liability for motor vehicles (kgfb) violates the principle of legal certainty derived from the rule of law, by not complying with the authorization granted by law. The excessive compensation premium applied by insurance companies distorts the functioning of the bonus-malus system, which reflects the will of the legislator.
The Ombudsman also considered that the application of the pecuniary surcharge was generally not objectionable. However, the application of an excessive pest surcharge, which deviates from the insured’s damage statistics and takes into account the calculation of the premium based on risk, that is, the bonus-malus system itself, is a return .
INCOMPLETE LEGISLATION CAN ALSO RESULT IN A 150% INCREASE IN THE INSURANCE PREMIUM.
Given this, the application of a dysfunctional excessive surcharge, which also takes into account damages beyond the damage of the observation period, distorts the functioning of the bonus-malus system, which reflects the will of the legislator.
For this reason, in his report, Ákos Kozma asked the Minister of Finance to consider a modification to the NGM Decree on the bonus-malus system, its classification and the rules on the issuance of damage history certificates, so the regulation clearly regulates the Use of Damage History Data by Insurers. and limits the pest surcharge as the value of the applied margin coefficient.
It also asked the president of the Hungarian Insurers Association to make sure that insurers interested in compulsory auto liability insurance read the report, the agency said.
(Cover image: Capital section of the M1 and M7 motorways in October 2019. Photo: Csaba Jászai / MTI)
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