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Insurance hike likely for drivers November 1, 2007

Posted by grhomeboy in Transport Air Sea Land.
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Drivers are likely to be hit soon with an increase in car insurance premiums as Greece adopts an EU directive that ups indemnities payable to traffic accident victims.

According to the EU directive, total compensation payable for a car accident involving fatalities will have a maximum of 5 million euros or will be determined by the number of victims involved. In the latter case, 1 million euros will be awarded for each victim, up from the amount of 500,000 euros which currently applies in Greece.

Greece is likely to adopt the option for the total 5-million-euro sum, according to sources. «The two choices have advantages and disadvantages,» said Fokion Bravos, President of the Hellenic Association of Insurance Companies.

Other industry sources said compensation amounts are too high for the Greek market and that implementing either choice could result in a company going bankrupt. A draft bill on the issue is expected to be made public next week.

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