The Hungarian Government plans to introduce a new tax which will be payable by the insurance companies which offer compulsory liability insurance for motor vehicles as of the beginning of 2012. The purpose of this new tax is to cover additional costs that the state health fund suffers due to car accidents.
The new tax is planned to be levied at a rate of 30% of the insurance fee for such type of insurances. The tax will actually be payable by the owners of the insured vehicles but the insurance companies will be obliged to collect the tax together with the insurance fee, and remit the tax to the state.
In Hungary, the insurance companies publish their tariffs for such compulsory liability insurance products for a given calendar year, at the end of October of the previous calendar year. Clients can then switch to a cheaper insurance company (if they want) during November.
This means that this year, there will not be much time left for the insurance companies to calculate their fees for next year, and publish them.
In Hungary, the business of compulsory liability insurance for motor vehicles is a HUF 100 Billion business per year (ca. EUR 350 Mio). Thus, the above new tax is expected to bring an additional amount of ca. EUR 120 Mio to the state budget, which will be used to cover additional costs which the state health fund suffers due to car accidents.