Vehicle registration in Montenegro could soon become more expensive by more than 30 euros if insurance companies persist in their intention to reduce the commission and other fees for auto liability policies to 20 percent for technical centers from April XNUMX, "Vijesti" has learned.
This is, as they claim in some technical centers, 40 to 50 percent less compared to the existing amounts, which will be reflected in the increase in the prices of technical inspection and other services by the same percentage.
"If the insurance companies make such an agreement, the only way to survive in the market is to increase the prices of technical inspections and other services by the same percentage, which, unfortunately, will be felt by car owners," several representatives of technical centers told "Vijesta".
They were not in the mood to give official comments on the possible agreement of the insurance companies, because, as they stated, they are currently in negotiations with the Government on solving that problem. They explain that auto liability policies will not be more expensive for vehicle owners.
"But that's why technical centers will have to increase the prices of technical inspections and other services. Let's say, if some have done free inspections so far, if the insurance companies get their way, it will be a minimum of 30 euros in the future. Those who did technical work for 15 or 20 euros will have to charge between 40 and 50 euros," the manager of a technical center from Podgorica told "Vijestima".
Technical reviewHe stated that the increase in inspection prices varies from city to city. He claims that this is a big blow to the budget of the average Montenegrin family, especially for those who own two, three or more cars in their fleet.
In Montenegro, there are currently four foreign insurance companies that provide this type of insurance - Lovćen, Sava Montenegro, Unika and Generali and one domestic private Swiss insurance. Out of about 130 technical centers, about 100 of them are not owned by insurance and they employ about 500 workers.
In addition to stating which insurance segments they have in their portfolio, Lovćen Insurance said that in each of them they have their own partners and business relationships, where specific items refer to the company's business domain.
"Our company, as a market leader, always takes care of all users, and of course the end users. We work in accordance with the business policy of our company and the Triglav group and legally prescribed provisions", writes Lovćen osiguranje in the reply.
The insurance company did not answer the specific questions of Vijesti - is it true that insurance companies are planning to reduce commissions to external users and if so, what would that specifically mean and how would such a move affect the technical centers and the end users - vehicle owners.
"Vijesti" did not receive answers to questions from Unika and Sava Montenegro, sent to their addresses indicated on the websites of those companies.
ANO is not informed about the plans of insurance companies
The Insurance Supervisory Agency (ANO) "Vijesitma" said that they have no information that insurance companies intend to reduce the commission for representation, that is, mediation in any type of insurance.
They also explain that ANO does not regulate the amount of compensation for the commission that insurance companies contract with representatives, that is, insurance intermediaries.
"All insurance companies that perform compulsory traffic insurance submitted their own conditions and premium rates for auto liability insurance in 2017, which defined the amount of commission that can be paid for mediation, i.e. insurance representation," said ANO.
They added that they were not notified of any changes to those terms or rates of auto liability insurance.
"The partial deregulation of auto liability insurance prices, prescribed by the Law on Compulsory Traffic Insurance, entered into force in August 2017. This implies that insurance companies draw up their own insurance conditions, premium tariffs and premium system with technical basis for calculation and submit them to the regulator no later than 60 days before the day scheduled for the start of their application. This is to check compliance with the law, actuarial principles and rules of the insurance profession", they said in ANO.
Insurers want to take over technical inspections
Representatives of technical centers claim that some insurance companies strive for unfair competition in order to stifle and take over the majority of technical examinations.
"Everywhere in the developed world, over 90 percent of premiums are sold through mediation and representation companies, which are in an unenviable position here thanks to the policy of insurance companies. In addition, everywhere is moving in the direction of professionalism and protection of end users, both in terms of quality and the price they pay", said the interlocutors of "Vijesti".
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