Slovak drivers will face another major increase of prices of liability car insurance next year, writes Hospodárske noviny economic daily.
Insurance companies are considering a 35-40 percent increase for 2004, arguing that the current insurance price is too low and results in a loss for them.
Apart from covering damages, companies also have bear the deficit that they inherited from the former monopoly insurer.
On November 1, a revision of the law on obligatory car liability insurance became effective. The law cancels the state regulation of premiums and thus liberalises the market.
The revision also includes a directive of the European Union, setting the exact period of time during which insurance companies are obliged to pay damages to clients.
Compiled by Beata Balogová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
4. Nov 2003 at 10:07