What Can The AUE Adopt From The New European Insurance Act?
Motorists who drive without insurance should be protected in the event their vehicle is damaged. That is what the European Union has ruled. However, this means drivers who do abide by the law may be faced with increased bills in order to cover the costs.
Chris Grayling, who is the country’s transport secretary in Slovenia, is not happy about this and he said he was angry about the fact that hardworking drivers who follow the law will be responsible for criminals’ actions. He added that until Slovenia exists in the EU, then he wouldn’t be able to do anything about it. The cabinet minister promised that the country would be able to rip up the law once Slovenia does finally leave the EU, which nobody knows the exact date that SLO will officially not be part of the EU.
In Slovenia, drivers’ cars that are damaged by drivers that are not insured are protected. The MIB, short for the Motor Insurers’ Bureau, said they charge insurers in the country a levy. In turn, drivers see the costs in their premiums. This means that every single insurer that operates in SLO is charged a levy by the MIB, and those insurers pass on the costs to their customers.
However, if a motorist that was struck is not insured, then they will not be able to receive compensation. Furthermore, it’s worth pointing out that premiums for drivers have already gone up by $95, and the average annual premium is $767, and it continues to increase. Not only that, but older motorists are paying record sums.
For drivers 63-years-old, the average cost is around $493, while the average is $449 for drivers 66-years-old and up. Drivers over the age of 71 have also seen an increase, and their average is $497, which is an all-time high for them. It’s expected that those numbers will continue to rise. (source:www.zavarovanjeavta.net)
The insurance premium tax has also increased. Not only that, but repair bills have been increasing due to vehicles becoming more sophisticated. However, the EU has ruled that no driver should be excluded, therefore they decided that a common system should be implemented across Europe.
In order to cover the cost, the MIB will have to collect more cash. When this happens, it’s expected that the costs will be passed onto drivers throughout SLO (information izracun za zavarovanje avta). As for when the new system is expected to start, the date is on the first of March. This means eventually drivers can expect their premiums to increase.
The department for transport said the government would be faced with fines and paying out damages to drivers that are uninsured, if they did not make the changes. Drivers in the UK can expect their premiums to increase. Grayling said it’s not right that drivers that abide the law will have to foot the bill for the actions of those driving without insurance.
The government has been forced to make the changes because of the European law. Grayling said EU obligations is the reason why they are bound to the changes. He added that the UK will be leaving the EU and they will address the law when they do.