Insurance Authority issues new motor vehicle insurance tariffs

The Board of Directors of the Insurance Authority has issued the new vehicle insurance tariffs system, developed on the basis of the new regulations for unifying motor vehicle insurance policies, issued in September.

The regulations include the unified motor vehicle insurance policies against third party liability and against loss and damage. It will come into force as of 1st January, 2017, and will supersede the Circular 7/28, issued by the then Ministry of Economy and Commerce on 24th June, 1996.

The new tariff system defines the maximum and minimum premiums. It, however, grants the insurance companies the freedom of competition by offering prices, based on their respective experiences with the customers, on technical or actuarial reasons.

The tariff will include additional premiums, resulting from the costs of ambulance services and medical evacuation to hospitals. The insurance companies may not levy or charge additional amounts, without a resolution by the Insurance Authority.

The authority retained the maximum premium for policies against comprehensive liability and against loss and damage for saloon vehicles at 5 percent.