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In order to promote competition on motor insurance market, enhance the protection of policyholders, reduce the accident rate and to improve cooperation between the representatives of the society and business concerned, the Ministry of Finance developed the Plan for Improving the Performance of Motor Third Party Liability Insurance Market that has been discussed at the meeting of the ministers and approved by the order of the Minister of Finance.
“In recent years we witnessed a rapid growth of insurance rates. Therefore, we decided together with insurers, carriers, the Bank of Lithuania and other public institutions to develop a plan for making the motor insurance sector to be as efficient as possible. We believe that after implementation of the measures identified in the plan, a framework for greater competition between insurance companies will be promoted and the growth pace of insurance rates will be slowed down”, said Minister of Finance Vilius Šapoka.
The plan provides for the examination of opportunities for the Bureau of Motor Insurers of the Republic of Lithuania (BMI) to report through information systems not solely about caused insured events, but also about the amounts of insurance compensation. Also, starting already from 1 September, the barrier to entry the motor third party liability insurance market will be removed by the order of the Minister of Finance – the entrance BMI member contribution will be reduced from EUR 115 thousand to EUR 15 thousand.
Among measures to be taken, is the preparation and approval of recommendations for qualifying non-pecuniary damage caused during the traffic accident, and exploration of the possibility of opening the joint call centre of insurers’ service providers that day and night could provide consultations to policyholders.
In total, the plan covers 18 measures to be implemented in the area of motor third party liability insurance and traffic safety by 2020. The plan is available here.