Regulatory Alerts2020-06-12
Regulation on the Implementation of the Bonus-Malus System
The Board of the Central Bank of the Republic of Kosovo issued this regulation to standardize the bonus-malus system for calculating compulsory motor liability insurance premiums for natural persons. It mandates that insurers adjust premium classes between 45% and 250% of the base rate based on declared claims during a one-year observation period, with specific rules governing policy transitions, expirations, and vehicle tariff groups. The framework replaces the 2012 implementation rules and establishes punitive measures for non-compliance while ensuring premium class rights remain tied to the policyholder rather than transferable to new vehicle owners.
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