The Council of the Insurance Supervision Agency of Montenegro issued the consent to the System of Tariffs and Conditions for the Third Party Liability Insurance of Owners of Motor Vehicles and Trailers (Automobile Liability Insurance) on its session held on 28 June 2011, proposed by the Association – National Bureau of Insurers of Montenegro.
The new system of tariffs for the Automobile Liability Insurance envisages an increase of the gross base premium, including tax on premium, for passenger vehicles having 33-44 kW (PR 4) engine from €111.72 to €118.47, which constitutes an increase of 6.04%. This increase is mainly impacting the growth of the part of the gross premium used to pay claims – pure premium, which was increased from €80.46 to €88.00, or 9.37%, for passenger vehicles having 33-44 kW (PR 4) engine.
The system of tariffs for the Automobile Liability Insurance defines a new percentage distribution within categories making the gross insurance premium, and so follows:
- Pure insurance premium makes 78.74% of the gross insurance premium,
- Contribution to loss prevention fund makes 1.57% of the gross insurance premium (or 2% of the pure premium),
- Loading expenses make 19.69% of the gross insurance premium (or 25% of the pure premium).
The highest amount of the fee or commission that could be paid for insurance brokerage or insurance agency activities, as well as for provision of ancillary insurance services is 10% of the gross insurance premium, however starting from 1 January 2014 it could be maximum 5% of the gross insurance premium.
The System of Tariffs and Conditions for the Automobile Liability Insurance enters into force on the eighth day following the day of its publication in the Official Gazette of Montenegro, and will apply starting from the 15th day following the one of its publication.