The Association of Road Transport Operators of the Slovak Republic (ČESMAD) disagrees with the government’s plan to introduce a new 8-percent tax on non-life insurance. It claims that the insurance companies will reflect the new levy by increasing the prices of motor insurance in order to meet their commitments and secure the current level of services.
Some insurance companies have already increased the mandatory motor insurance by 100-300 percent, representatives of ČESMAD Slovakia told the November 14 press conference.
“On one hand we agree with the fight of insurance companies against the amendment to the law and fully support them, but we cannot accept such a steep increase in prices as it will negatively impact the business of hauliers who already are in a critical situation,” said ČESMAD Slovakia head Pavol Jančovič, as quoted by the SITA newswire.
The decision of insurance companies is unfair as they failed to warn the hauliers in advance. As a result, they had only a minimal chance to respond to the current situation, Jančovič added.
Thus ČESMAD has called on the government to liberalise the market with mandatory motor insurance, offering the possibility to take lower insurance abroad. In case the MPs approve the amendment in its current form, the association claimed it will respond. One of the possibilities is to create one big group of all hauliers who will be insured by a single company offering the best price. Another way is to create their own insurance firm in cooperation with the association’s partners.
“The tax and payroll tax burden of Slovak hauliers is the second highest in Europe, and after the increase it will achieve 60 percent,” ČESMAD representatives warned, as quoted by SITA.
While in other countries this sector is developing, in Slovakia the growth has stopped due to unfavourable conditions, they added.
Since trucks caused only 3.7 percent of all accidents in Slovakia last year, it is inadequate and unfounded to increase the cost of motor insurance, Jančovič claimed.
