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The Ombudsman proposes an amendment to the law on the payment of mandatory automobile liability insurance (kgfb), the Office of the Commissioner for Fundamental Rights (AJBH) told MTI on Tuesday.
The Hungarian Automobile Club filed a complaint with the Commissioner of Fundamental Rights, in which it pointed out problems related to the regulation of the bonus-malus system used by insurers to determine the premium for compulsory automobile civil liability insurance and the collection of the so-called pest premium.
The regulation leaves the question of the use of claims history data entirely to the discretion of insurers, making the insurers’ pricing system arbitrary. In the opinion of the Ombudsman, the rules 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.
It found that the regulation of the kgfb violates the principle of legal certainty that arises from the principle of the rule of law, because it does not comply with the authorization that the law receives. 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 . The lack of legal regulations could in some cases result in an increase in the basic insurance premium of up to 150 percent. 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.
The Office requested the Minister of Finance to consider an amendment to the NGM Decree on the rules for the bonus-malus system, its classification and the issuance of damage history certificates, as a result of which the regulation clearly regulates the rules on the use of the data of the history of damage by the insurers and the pest premium. – 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.
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