Opinion of the Insurance Supervision Agency concerning the public procurement procedures

In reference to requests concerning opinion pertaining to the question whether a bidder is entitled to give gratis automobile liability insurance policies to the contracting authority when submitting a joint bid, we hereby issue the following opinion:

The opinion dated 13 February 2012, uploaded on the website of the Agency, provides, amongst other things, the following information to the interested public:

“With regard to the price element of the compulsory insurance, we would like to stress that the lowest premium for compulsory insurance, pursuant to Article 5 of the Law on Compulsory Transportation Insurance, is set by the System of Premium Tariffs for Insurance of Owners or Users of Motor Vehicles against liability for damage to third parties, to which the Agency issued its consent (22 July 2011).

Such established minimum premium for entering into a contract on compulsory insurance can be corrected only by changing the bonus-malus system and only after the expiry of one year from the commencement of application of the ICT system of the Association of Insurers. In addition to the bonus-malus system envisaged under the System of Tariffs, which is not yet applied, no other reduction of the premium can take place.”

Thus, the position of the Agency is clear on whether and how much premium must be charged by each insurance company engaged in automobile liability insurance.

Since it is indisputable that the automobile liability insurance premium is not free of charge, as well as that the level of the premium can be negotiated only by such persons authorized to do so under the Law on Insurance (insurance companies or insurance agency companies issued with an operating license by the Agency), we are of the opinion that the premium for compulsory insurance cannot be the used to express comparative advantages to other bidders, where such premium has a minimum tariff set by the regulatory authority in accordance with law.