The Hungarian Automobile Club submitted a complaint to the Commissioner for Fundamental Rights, in which it indicated problems related to the regulation of the bonus-malus system used by insurers to determine the premium for compulsory motor third party liability insurance and the charging of the so-called pest premium.
In his report on the case, Ákos Kozma, Commissioner for Fundamental Rights, pointed out that the regulation leaves the issue of the use of claims history data entirely to the decision of insurers, which makes the pricing system of insurers arbitrary. In the Ombudsman’s view, the rules do not take into account either the undeniable economic interest of insurers in setting charges or the protection of the interests of consumers using the public service.
He found that the regulation of the kgfb violates the principle of legal certainty arising from the principle of the rule of law, because it does not comply with the authorization received by law. The excessive compensation premium applied by insurers distorts the operation of the bonus-malus system, which reflects the will of the legislator.
The Ombudsman also found that the application of the pecuniary surcharge was generally not objectionable. However, the application of an excessive pest surcharge, which deviates from the insured’s loss statistics and takes into account the risk-based premium calculation, ie the bonus-malus system itself, is a return.
In some cases, the lack of legal regulations could have resulted in a 150 percent increase in the basic insurance premium. In view of this, the application of a dysfunctional bonus surcharge, which also takes into account damages beyond the damage of the observation period, distorts the operation of the bonus-malus system, which reflects the will of the legislator.
Therefore, in his report, Ákos Kozma asked the Minister of Finance to consider an amendment to the NGM Decree on the bonus-malus system, its classification and the rules on the issuance of damage history certificates, as a result of which the regulation clearly regulates the use of damage history data by insurers. and limits the pest surcharge as the value of the mark-up applied.