Insurance Companies to Return Automobile Liability Insurance Premium to Previous Level – Old Prices in Effect from August 26, 2022

Insurance companies have decided, at the recommendation of the governor of the National Bank of Serbia (NBS), Jorgovanka Tabakovic, to give up on the new prices of automobile insurance policies, the Association of Serbian Insurers announced yesterday.

As said, from August 26, the prices will be returned to the level from before the beginning of the month, whereby an increase by 22% will be canceled.

The new prices of basic motor vehicle insurance were in effect from the beginning of August. The decision to increase the prices was adopted for the first time after July 1, 2014, based on the analysis of the current situation in the car market, the Association said.

As explained, the increase in the prices of new and used vehicles, as well as spare parts, but also the considerably higher work hour prices at car services, primarily influenced the increase of the prices of basic vehicle insurance.

Let us remind that, yesterday, the NBS sent a letter to all insurance undertakings which unjustifiably raised MTPL insurance premium, inviting them to restore the prior level of the premium as soon as possible.

As said, in the discharge of its supervisory authorities, the NBS “will initiate supervisory procedures against those undertakings which continue to charge the unjustifiably high premiums and take all necessary measures to protect the rights and interests of policyholders, applying the supervisory measures and other sanctions against the insurance undertakings and/or the persons responsible”.

– At the same time, the NBS expects insurance undertakings to promptly inform their policyholders about the deadline and manner of refund to those policyholders who were charged the unjustifiably higher premiums over the past 25 days, i.e. since August 1 when the MTPL premium was considerably increased – on average by around 22% – it is specified on the website of the NBS.

As said from the governor’s cabinet, as a regulator in the insurance market, at yesterday’s extraordinary meeting of the Executive Board the NBS adopted a regulation “preventing reoccurrence of such circumstances, by particularly regulating the decision-making procedure in insurance undertakings relating to conditions and tariffs of compulsory insurance premiums”.

– This means that from now on, 60 days prior to a planned increase, the insurance undertakings will inform the NBS about their intention to change premium tariffs, submitting the documents which justify such increase – the central bank said.

Udruženje osiguravača Srbije Beograd

Narodna banka Srbije Beograd

NBS

insurance companies

Jorgovanka Tabaković

automobile liability insurance premium

increase of automobile liability insurance premiums

money refund