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Exorbitant prices of insurance for vehicles and freedom of movement (Vesti)

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Freedom of movement and paying the exorbitant prices of insurance for vehicles from Kosovo, it seems is only the political issue. In order to decrease monthly insurance of 108 euros Belgrade offered a solution six months ago, but Pristina has ignored it, Vesti learns.

While about the RKS plates will be discussed within the Brussels talks (a Serbian proposal is that these vehicles receive test plates at no additional cost), Belgrade has entered into the talks a half year ago on expanding insurance policy on Kosovo, and with the European Union and the Council of Green Card Bureau agreed the text of the memorandum of understanding.

This means that people will no longer pay extra insurance for vehicles with KS plates. However, in order for this to be implemented, it is necessary and that Pristina sings the same contract (under special conditions), but apparently because of political stalemate, there are no announcements on the subject.

– First, we tried to find a modality for the introduction of a separate, cheaper insurance, but unfortunately it was not possible, not only because of the insurance companies, but also because of the legal framework in this field, where neither the National Bank of Serbia (which is the regulatory body) failed to find a solution. Then the talks with the EU and Pristina were approached on how to solve the problem, since insurance companies in Kosovo have no chance to become part of the green card because they are far from meeting the requirements – says the source close to the negotiating team to Vesti.

The European Union has proposed to sign a direct agreement between the Association of Serbian Insurers and the Bureau of Insurance Companies in Kosovo (KIB), but a problem was not only political.

– None of the countries within the EU that have recognized Kosovo do not want to even think about signing the same agreement with the Bureau of Insurance Companies in Kosovo. Height of the insurance for such vehicles registered in Croatia, Hungary and Greece is about 350 euros per month. Those who in turn signed an agreement (Albania, Montenegro and Macedonia) with Pristina, paid dearly, as the KIB has not paid a cent for damages – says the source.

Influential brothers as regulators

It is interesting that the head of the Pristina technical team for insurance issues is Rahim Pacolli, brother of the richest Albanian Behgjet Pacolli, while the head of the Bureau of Insurance companies is Gani Thaci, the older brother of the outgoing Kosovo Prime Minister Hashim Thaci. And in the Association of Serbian Insurers is the brother of Prime Minister of Serbia – Andrej Vucic. He was appointed as an independent member of the Supervisory Board.

Dunav (not) competent

We were not able to receive an answer from the Dunav Insurance Company on the question how much money they collect from the vehicle insurance, but said instead that the “national structure of parties that pay the insurance is as follows: 95 per cent are Albanians and five per cent are Serbs (perhaps even less because they have dual registration of the vehicle)”. On the same issue, the Association of Serbian Insurers replied that they “when it comes to money collected, this is not in our jurisdiction.”

– Reports on business, insurance companies submit to the National Bank of Serbia, as required, which is the regulator of the market, and not to us – they say.

 

 

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