Gazeta Ubezpieczeniowa, 30.07.2008

What will replace ”Religa tax”?

The first stage of public consultations on amendment changing the rules of financing treatment of road accident victims is drawing to a close. Although with many reservations, insurance circles generally approve of the direction of Health Minister’s new legislation, which is to take effect as of 1 November.

(…) Comments made by Pro Motor go further than remarks of the Polish Chamber of Insurance. At a press conference Franz Fuchs, chairman of the Association, expressed his satisfaction with the direction of Heath Minister’s proposal, which is more socially fair as it distributes the burden of refinancing medical treatment of accident victims onto an incomparably larger number of entities, especially on liable perpetrators of the so called personal losses and on insurers covering such liability.

Pro Motor has put forward an introduction of standardized costs and periods of providing individual medical services. Association’s opinion presented to the press analyses all pros and cons of the Minister’s proposal. (…)

Authors of the opinions claim that Pro Motor’s proposal eliminates potential reasons for legal disputes. Once a personal loss has been indisputably determined and medical services were in turn provided, insurance company or perpetrator will be obliged to compensate the loss in the amount which will not be subject to dispute.

Franz Fuchs stressed that due to necessary consultations on valuation of medical services, standardization would delay the introduction of the new law. Still, this solution is more favorable than the following:

• increased number of claims handled by insurance companies, generating extra employment costs,
• increased costs of legal service on both sides of disputes due to time-consuming court proceedings,
• low efficiency of the National Heath Fund’s claims against uninsured entities,
• reserving for unpaid claims and benefits in the value corresponding to claims lodged.

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