UNMIK/PR/541
In order to put an end to aggressive commercial practices that, in the long run, would jeopardize the viability of the insurance sector in Kosovo, Tom Koenigs, Deputy Special Representative of the Secretary General for Civil Administration, has issued Administrative Instruction UNMIK/AI/2001/1. This was done in consultation with the insurance companies and in accordance with the Administrative Directive 1999/15, implementing the Regulation 1999/3. This new Administrative Instruction imposes strict guidelines to insurance companies, agents, and brokers. It has an immediate effect as of the 24th of March.
Insurance companies can now provide discounts to policyholders, but only up to 10% and with the following two restrictions: it must be a renewal of a contract with the same company and the policyholder must not have been involved in any accident in the previous period covered by his contract. A discount of up to 10% can also be granted for fleets of over 10 vehicles insured by one policyholder. Additionally, insurance companies can now only pay a maximum of 15% of the premium, as a commission to their agents and brokers.
Insurance companies who do not respect these provisions shall face immediate suspension or revocation of their licenses to operate in Kosovo.