Mandatory motorcycle insurance will rise by less for drivers who increase their excess.
Mandatory insurance rates for motorcycles and motor scooters will go up on Sunday, but anyone who opts to increase his or her excess for pain and suffering resulting from an accident, will see their rates rise by less. They will receive a discount on the new rates, which is some cases could result in them paying less than they do now.
The Ministry of Finance today said that the mandatory insurance premiums for two-wheeled motor vehicles will come into effect on schedule, on November 15. However, policies in which drivers agree to increase their excess will receive a 20% discount on the new rate. Minister of Finance Yuval Steinitz and Deputy Minister of Finance Yitzhak Cohen reached a deal to this effect with Knesset Finance Committee chairman MK Moshe Gafni (United Torah Judaism) and Economic Affairs Committee chairman MK Ophir Akonis (Likud).
The compromise involves higher excess in the pain and suffering component of the policies, but not for compensation for loss of income or medical expenses.
Published by Globes [online], Israel business news - www.globes-online.com - on November 12, 2009
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