Gazeta Prawna, 04.03.2008

MTPL policy should expire 30 days after car sale

Pro Motor calls for regulations lifting automatic MTPL policy transfer onto new owners of vehicles and allowing termination of contract if subsequent installments are not paid. The Association, with some members from insurance companies, wants its proposals to be discussed by the Council for Development of Financial Market at the Ministry of Finance and has applied for invitation to join the Council’s work.

Customers still don’t know that they are buying a car together with its MTPL policy. If premium has been paid in full for the entire insured period, no termination notice at least one day before expiry means automatic renewal for another 12 months. Quite a lot of people buy a new MTPL policy when they buy a car and only when they receive a payment notice from the previous insurer, do they find out that they have two valid contracts.

We want this automatic transfer to be lifted when car owners change, says Piotr Kaczanowski form Pro Motor.

This means that when changing insurers one will still have to remember to terminate the previous contract. However, if the car is sold the contract would terminate after 30 days (providing that it obviously expires later than within those 30 days).

Pro Motor also wants that failure to pay a subsequent installment should result in cessation of liability of the insurer as of the end of period for which premium was due.

Of course, only if all notice delivery procedures are kept and deadline for payment of overdue premium is determined, explains Piotr Kaczanowski from Pro Motor.

PRO MOTOR’S PROPOSALS ARE:

• to allow reduction of premium if a car is temporarily excluded from traffic.
• to allow temporary cover for over a 30-day period.
• to lift new owner’s obligation to pay premium arrears made by the previous car owner.