Hellenic Association of Insurance Companies – Great reversal: How to insure your vehicles from now on

Hellenic Association of Insurance Companies – Great reversal: How to insure your vehicles from now on

A new legislative framework is being shaped at the obligatory motor insurance, enacted through the law “Access to the activity of credit institutions and preventive supervision of credit institutions and investment businesses (incorporating 2013/36/EE Directive), abolishing law 3601/2007 and other provisions”, which was voted on Friday, by the Greek Parliament, according to the Hellenic Association of Insurance Companies’s announcement.

Specifically, with the new legislative regulations that are set into effect immediately (from the day the law is published in the Government Gazette), the following changes are implemented, among others:

  • The abolishment of the automatic renewal of motor insurance policy and recognition of the premium payment as a necessary prerequisite, not only for the commencement, but also for the renewal of the insurance coverage. In this way, it is no longer required for the insurance agent to terminate/cancel the policy, when policy expires.
  • The abolishment of the insurance sticker and the temporary insurance card.
  • The institutional recognition of the electronic communication among insurer, insured, and the party entitled to compensation, in all procedures (e.g. insurance formation, claim settlement etc.).

“The new legislative framework protects and secures the insured as well as the third party injured, in case of a motor accident, while at the same time, the new regulations protect and secure the solvency of insurance companies” mentioned the president of the Hellenic Association of Insurance Companies (HAOC), A. Sarrigeorgiou.

The president of the Motor Committee of HAOC, D. Zorbas commented that “with the new regulations, a new era begins in the obligatory motor insurance sector. Previous malfunctions that were damaging diligent policy holders, injured parties, as well as insurers, i.e. automatic risk cover without prior premium collection; are now addressed by an effective and safe system of commencement/termination/cancelation of obligatory motor insurance policy, which will benefit all parties involved. Additionally, by the establishment of electronic communication, there is now less bureaucracy and the operations are assisted in every stage of the insured-insurer exchange.  Insurers operating in Greece are ready to make the transition into the new regime and are informing their insured about the changes”.

Click here for the Greek article.

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