TNBiz (TNBiz)
Markets  |  March 17, 2013 15:33:49

Shock for car owners, insurance companies, they dramatically raise the price of liability insurance

"Plus minus we can talk about three to four percent increase in prices later this year," said the director of the Czech Insurance Association Thomas Sikora.

If the bill passes, the more expensive the insurance according to Sikora at least another three percent. "We have to reckon with the fact that there will be quite a lot of costs, as it is today amendment is written," explained another possible rise Síkora.
Insurance while more expensive at the beginning of this year by about three percent.

With the increase in the cost fundamentally disagrees deputy Jerome Tejc (CSSD). He points out that each year choose to damage liability insurance of at least 10 billion more than the expenditure on payment of damages.

"But I am convinced that there exists a sufficient financial cushion for the removal of payments to the fund for the financing of firefighters and emergency services without the mandatory insurance," said Tejc.It points out that insurance companies never proved substantiate that would actually provide this insurance was at break-even.

In this context, suggests that the new government could change the current system and third party liability could legally arrange Czech Post. "It could reduce premiums by up to a third, it would still be part of the payments could go to support fire and rescue system," he added Tejc.

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