Compulsory car insurance premiums are set to fall dramatically, the main news broadcast on Channel 2 reported exclusively yesterday. The unusual measure is a result of NIS 1.5 billion accumulated in the Karnit Road Accident Victims Compensation Fund, which collects some of the compulsory insurance premiums paid by drivers.
In an unusual and unexpected measure, the state has decided to refund the money discovered, and compulsory insurance premiums will therefore be gradually cut for a three-year period. The premiums will be reduced by 18% next year, 13% in 2017, and 5% in 2018.
The premium cuts will apply to all vehicles, including motorcycles. Minister of Finance Moshe Kahlon initiated the measure, together with Minister of Justice Ayelet Shaked, who will submit the bill making the premium reductions possible.
The Ministry of Finance said that drivers due to pay compulsory insurance premiums in the next six months will receive three discount vouchers.
Published by Globes [online], Israel business news - www.globes-online.com - on June 16, 2015
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