Amending of the CBAK Rule 3 on compulsory Third Party Liability insurance

28/03/2008

Since the conflict, the tariffs of the Third Party Liability Insurance policies (TPL) have been determined by the Central Banking Authority of Kosovo in its capacities of supervisor of the insurance industry.

After several years of the expansion of the insurance companies licensed by the CBAK, the local industry appears to be mature enough to enter step by step into a phase of controlled liberalization of TPL Tariffs. Indeed, a controlled liberalization could bring more competition between insurance companies. It will benefit to the policy holders, who could be granted not only with better tariffs, but also with improved quality services namely regarding the payment of claims.

That is why the CBAK Governing Board, on December 18 2007, decided to amend the CBAK   Rule 3 on Compulsory Third Party Liability Insurance. This amendment will give to insurance companies the opportunity to modulate their tariffs under limits fixed by the CBAK. This will allow insurance companies to be prepared to further steps of liberalization.

The first step of this controlled liberalization will enter into force on April 1st 2008
The comprehensive text of the amended Rule 3 is available in CBAK Website (Legal framework / Rules and regulations/ Insurance Rules).