Fogyasztóvédők Magyarországi Egyesülete

Compulsory automobile liability insurance

The operator of a motor vehicle is obliged to conclude an automobile liability insurance contract. (hereinafter CALI)
According to the statutory provisions the operator is the owner of the vehicle, or the operator registered into a document, what was given out by the authorities of an other country according to the business place. Other people who use the vehicle by an other legal title, can’t be regarded as an operator, for example the usage based on loan contract.
The compulsory liability insurance is designed to ensure appropriate compensation for damages arisen during traffic accident. Without CALI we can’t take part in public traffic. Every operator of vehicles registered in Hungary is obliged to conlude a liability insurance contract to cover damages caused by operating the vehicle, and keep it in effect by continous payment of the insurance premium. Anyway, a vehicle can be operated in the territory of Hungarian Republic just with compulsory liability insurance.

About the bonus-malus system

The essence of the system that if somebody doesn’t cause a damage, he/she will be put into a more the favorable bonus class with a significant reduction in rates, while who causes damage, his/her bonus class decreases, the rates increase.

If the contract is terminated by delinquent premium, the bonus class will expire, the new contract can be categorized into a class A00.
Into the system entrant operator's contract is normally categorized into class A00. Similarly, if the operator of a vehicle has already have a contract and while it’s in force he concludes an other contract to a vehicle at the same cathegory , the new contract also should be categorized into the A00. In case of vehicle swapping we can carry our bonus over, of course just then, if the ownership has already transferred.
It should be noticed, that in case of certain damages it’s better to pay it to ourselves outside of the insurance, because after tort our bonus will decrease by less amount of damage as well, not just by a multimillion damage.

Payment of premium

Make sure that the thirty –days tolerance period from the due date of the payment hasn’t elapsed, when we doesn’t pay our delinquent premium in the tolerance period, the contract will terminate automatically (this happens even if the insurer did not send a check, on which we pay a premium).

How can I change insurer?

Once a year we have the option to change insurer, i.e. we can carry our compulsory liability insurance over to another insurer.

It is worth to look carefully through the table of premiums, before such a decision is taken, because we will have the chance to repeate the changing just in the following year.
The written notice of termination by mail (registered letter is worth), in person or by fax should be sent to the insurer. The conclusion of a new contract will only be valid if the resignation was also formal. Otherwise the contract wanted to avoid still exists.

Online Insurance

The recourse of online broker service can significantly facilitate our choice between the insurer’s offers. We can easier get a line on the insurer’s premium offers to choose out the right one for us.
The advantage of changing insurer via Internet is to avoid the inconvenience of personal administration, in parallel, reducing the possibility of errors, and we can resort additional benefits associated with the online service.

What to do if damage occurs?

Check the documents of the participants in an accident, then, if it’s available, fill out an accident Claim Report form, voucher to all stakeholders (it’s worth to keep the european accident claim report form in the vehicle, we can get it by all the insurers, and it can be used abroad). If an accident occurs we should pay attention to fill out the form accuratly, to note personal identification information, to ensure any witnesses, and / or if it on an other way can not be proved, to prepare the statements undersigned by the parties.

The insured is required to announce the incident to the insurer –giving the informations required to the settlement of claims, and a description of relevant circumstances – in writing within 8 days, and in connection with the loss, show the decree of authority related to the insured in to the insurer within 8 days from receipt. An operator without valid insurance contract shall report the loss in 8 days to the manager of Compensation Account.

In case of losses which have occurred abroad, the deadline of announcement is counted from the homecoming date The insured shall announce in 8 days if related to the loss legal or nonlitigous proceeding has started against him/her. The insurer is entitled to ensure the representation of the insured in this procedure.
If the tortuous vehicle does not have liability insurance or the tortfeasor is unknown, then the claim will be settled from the compensation account of Association of Hungarian Insurance.

Tort abroad and by foreigners

The territorial scope of the insurance contract applies to the territory of the European Union, the European Economic Space and Switzerland, and the territory of those countries of the International Green Card system, which’s national office has an agreement with the Hungarian National Office.
In case of damages caused by the insured outside of the Hungarian Republic’s territory, on the territory of the previously mentioned countries, the rate of the insurer’s liability obligations exists related to the car insurance liability statutory instruments of the country where loss has occured. If this rate is higher in the contract, then the contract’s rate shall be applied. If we leave the country, be sure to get the green card. (we can get it free by the insurer)
If the damage is caused by a foreign person who has concluded liability insurance contract with a foreign insurer, it’s worth to record everything in details, especially the insurance company's name, the number of the green card and its validity (in this case we should call police anyway).

What you should know about the "green card"?

The green card is the internationally recognized proof of liability in foreign countries taken part in green card system. Before going abroad it is worth to take the otherwise free Green Card out to avoid inconveniences later. Otherwise we can require the green card for free by the insurer contracted with us.
It’s required to take the green card out, if we travel to Albania, Bulgaria, Belarus, Iran, Israel, Morocco, Moldova, Turkey, Ukraine, Tunisia with our vehicle.