More Expensive and Mandatory Car Insurance

For nearly two million Croatian drivers, mandatory insurance will increase by 10 percent starting from the New Year. The reason is the new provisions of the Health Insurance Act, which impose new obligations on insurance companies to finance the treatment of those injured in traffic accidents.

As reported by Croatian Radio Television, the treatment of those injured in traffic accidents has so far been covered by mandatory health contributions. From January 1, according to health reform, it will be covered by insurance companies. They will directly pay 10 percent of the additional premium into the state budget. This means that drivers will pay an additional 150 kuna on the average premium amount of 1428 kuna.

With this decision, as reported by HRT, not only drivers are dissatisfied but also insurers. Such an amount represents a significant new financial obligation for Croatian insurance companies amounting to over 250 million kuna, which far exceeds the actual amount of damage caused to the Croatian Health Insurance Institute by owners and users of insured vehicles, emphasized Hrvoje Pauković, director of the Croatian Insurance Bureau.

Even at Hanfa, which oversees the market, they are not happy with this decision. They claim they were not consulted about anything. I believe that the Association of Insurers will take action and discuss, trying to reach some amendments and supplements, but it is what it is. The law has been passed, and from January 1, 2009, we must apply it, emphasized Ivan Vrljić, vice president of HANFA.

And while this so-called Slovenian model of collection has not thrilled insurers who say they will have to cover the costs through inevitable price increases, the Ministry of Health justifies this additional burden. A total of 4,335 people were injured last year in traffic accidents, and their insurance must cover the treatment. The treatment of such patients on an annual basis is around 200 million kuna. The HZZO manages to collect about 60 million kuna. We have 2,600 lawsuits, claims Health Minister Darko Milinović.

And while insurance companies announce that they may seek a review of the constitutionality of the disputed legal provision, drivers will have to pay more expensive insurance.