Provisional legislation has been presented to the Spanish insurance regulator, the Direccion General de Seguros, providing for the reduction to the rates of charges due to the Consorcio de Compensacion de Seguros(CCS) in respect of Spanish motor risks.
- The rate of contribution to the National Guarantee Fund (NGF) is set to reduce from 2% to 1.5%
- The Extraordinary Risk Premium, set at a fixed fee per vehicle, is also due to reduce. The reduction varies depending on the type of vehicle but is generally between 30% and 50%
In addition to the reduction to the Extraordinary Risk Premium, the law is being amended to extend the charge to include Motor Third Party Liability policies. Currently it is only due on Motor Hull policies and this change is intended to ensure all vehicles are covered by the CCS in the event of an extraordinary risk.
If approved, the new rates are due to take effect on all policies incepting on or after 01 July 2016.
If you wish to discuss this matter further or require more information please contact Nazaret Gonzalez, Senior Client Manager at email@example.com