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Bill prohibits vehicle insurers from offering more favorable premiums

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Ruling Fidesz lawmakers submitted a bill today to the Hungarian Parliament, which would prohibit providers of mandatory vehicle insurance from offering new clients premiums more favorable than those paid by existing policyholders, Hungarian news agency MTI reported.

The bill, published on the Parliamentʼs website, would require insurers to inform existing clients prior to the end of the annual window for changing mandatory vehicle insurance providers, that their premiums may be no less favorable than those offered to new policyholders, MTI reported.

Under the bill, insurers would also be required to spell out the impact of any changes to existing clients’ contracts, MTI added.

According to the news agency, the authors of the bill said they are looking to correct the tendency of some insurers to offer incentives to new clients at the expense of existing policyholders through loyalty rewards reflected in premiums.

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