Penalty Points for Violation of Traffic Rules versus Motor Insurance Premium. Analysis of New Legal Solutions

Abstract

An amendment to the Polish Road Traffic Code introduced a possibility for the Insurance Guarantee Fund and insurance companies (offering motor liability and motor hull insurance) to access information in the Central Drivers Registry relating inter alia information concerning road traffic offences and to penalty points imposed as a result of committing such offences. Insurance companies may consult the Registry with the Funds assistance. At the same time, under the amended Polish Insurance and Reinsurance Act, insurance undertakings may process those data (i.e. driving offences or violations of road traffic regulations and penalty points issued as a result thereof) only for the purpose of insurance risk assessment and pricing with a view of concluding motor insurance contracts (excluding carrier's liability insurance). Similar solutions have been adopted in other countries, including EU Member States. The article is an attempt at explaining and conducting an initial evaluation of the new mechanisms, as well as at answering a question about possible impact thereof upon motor insurance premiums.