The current Bonus-malus system will end on August 1: what should car owners consider?
From Thursday, August 1, the existing Bonus – malus (hereinafter – BM) system will cease to operate, transforming it into a centralized insurance history data provision service without complex algorithms and formulas that made the previous BM system difficult to understand. Latvian Motor Insurers' Bureau (hereinafter – LTAB) has compiled the 10 most important questions and answers that car owners should consider.
- Why is the BM system being reorganized?
The BM system that existed in Latvia until now was based on complicated algorithms and formulas, which made it difficult to understand. With the transformation of the BM system, the presentation of insurance history data will be implemented in a simple and understandable way.
- Will the reorganization of BM affect the price of the MTPL policy?
The reorganization of the BM system cannot be the basis for an increase in MTPL prices. MTPL prices will continue to be influenced by many factors, as before – indicators of the number of previous insurance cases and insurance days, various additional risk factors (for example, data on the owner's penalty points, the purpose and place of use of the vehicle, etc.), economic indicators in Latvia and the world (for example, inflation in the medical and repair sectors, etc.).
- The BM system assumed that vehicles of different categories belonging to the same owner were each assigned to their own BM class. Could this approach change?
A person's insurance history will reflect the number of insurance days and insurance claims incurred for all vehicles for which the person is registered as the owner or keeper, but vehicles will no longer be divided into classes.
- What period of time should a person's insurance history be viewed for and why from this point in time?
Every person's insurance history will be available for viewing from 01.05.2004, when the EU Directive came into force in Latvia and a new MTPL law was adopted.
- What happens to the insurance history accumulated by a person before 01.05.2004?
If a person's insurance history began to develop before 01.05.2004, it will not be displayed, however, because this historical data is not compatible with the insurance history record that began on 01.05.2004.
- What will happen to my previous BM class? Will my previously “earned” good (7th – 17th) BM class no longer be taken into account?
All data on a person's previous insurance history will be retained and available to insurers. The better a person's previous insurance history is, the better the insurer will evaluate it when assessing the client's risk.
- How often will insurance history data be updated?
From now on, car owners will no longer have to wait for the annual September 15th - insurance history data will be updated every day.
- How do I find out how good a manager I am, how often does an average manager cause RTA?
LTAB In total, more than 574 thousand car owners – individuals – are registered in the database. Most of them (47,2%) have not caused a single accident since May 2004, 1. The more insurance days and fewer insurance incidents in your insurance history, the better your insurance history.
- Where can I view a person's insurance history, and is it a paid service?
You can view a person's insurance history for free. LTAB on the website (www.ltab.lv), LTAB in the OCTA app, or by requesting a certificate of a person's insurance history.
- What should I do if there is an error in my insurance history? How can I correct it?
In case of errors, please contact LTABby sending an email to support@ltab.lv