Hungarian financial market regulator PSzÁF has prohibited AIM Insurance from offering new mandatory vehicle insurance policies from October 20, a decree published on its website shows.
PSzÁF took the step after finding AIM repeatedly broke rules on the management of records for mandatory vehicle insurance policies. PSzÁF ordered AIM to bring its record-keeping system in line with regulations by the end of 2010.
The ban does not affect AIM's other insurance operations.
AIM said a week earlier that it was pulling out of the mandatory vehicle insurance market, but would continue to offer comprehensive vehicle insurance.
AIM entered the mandatory vehicle insurance market in May 2009 when it bought TIR Insurance Association's stock of policies. (MTI-Econews)