Next month, Spain's Consorcio National Guarantee Fund
contribution rate reduces to 1.5% from the current 2%. The lower
rate applies to all motor insurance contracts issued or renewed
from 1 July 2016.
The Spanish Official Gazette recently published two resolutions
BOE-A-2016-5431 and BOE-A-2016-5432 approved by the Spanish
insurance regulator, the Direccion General de Seguros. From 1 July
2016, the Consorcio National Guarantee Fund contribution rate
reduces to 1.5% from the current 2%. The lower rate applies to all
motor insurance contracts issued or renewed from 1 July 2016.
The resolution BOE-A-2016-5432 introduces a scaling down of
the Consorcio Extraordinary Risk premium rate for all categories of
land vehicles that are registered in Spain and insured in Spain. In
addition, it amends the law to include mandatory motor third party
liability insurance into the Extraordinary Risks surcharge regime,
which is applicable currently only on Motor Hull insurance, with
effect from 1 July 2016. The following table outlines the reduction
of the Extraordinary Risk premium across the various types of
Type of vehicle
Rate before 1 July 2016
Rate from 1 July 2016 (per vehicle)
Passenger cars and commercial vehicles up to 3.5 tonnes
Tractors and agricultural and forestry machinery
Coaches, buses and trolley buses
Caravans, trailers and semitrailers
Mopeds, tricycles, rickshaws and motor bicycles
Where voluntary liability insurance is also taken out alongside
compulsory motor hull and liability insurance, the Extraordinary
Risk surcharge is subject to either policy, but not both.
IPT Quote, TMF Group's online calculation
tool is updated with the new rates and effective date. Users who
run a rate check or create a quote with mandatory motor insurance
can simply select the 'Motor' Line of Business, where the
Consorcio National Guarantee Fund contribution and the
Extraordinary Risks surcharge is shown and calculated.
Users who wish to calculate taxes on voluntary motor insurance
policies will need to tick the Line of Business "Third Party
Liability" at the Rate Check where only the Consorcio National
Guarantee Fund contribution is displayed. For creating a quote with
combined mandatory and voluntary motor policies, users should
select both lines and allocate the premium to the two lines in
order to calculate the correct tax amount due.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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This is the January edition of the Arthur Cox Insurance Regulatory Update, the monthly bulletin of the Arthur Cox Insurance Group focused on recent developments in insurance regulation, law and practice.
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