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MNB calls on insurers to review vehicle insurance policy fees

The National Bank of Hungary said on Friday that it is calling on insurance companies to review their mandatory vehicle insurance policies (kgfb) with special focus on premiums paid by customers by January 1, 2021, according to a report by state news wire MTI.

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The central bank said unjustified surcharges, sometimes excluding clients from a certain risk category, do not constitute good practice and neither does imposing damage surcharges totaling twice or three times to value of a base insurance premiums.

Unjustified premiums undermine the risk-based remuneration and bonus-malus system, the MNB said.

Based on a central kgfb database, which has been accessible to insurers now for three quarters, MNB expects a statistically based premium calculation even from market participants without their own databases and will not accept a lack of data on the part of insurers as justification for imposing extra premiums on clients.

MNB will start a closer examination of kgfb fees after a six month grace period, from July 1, 2021.