Motor Accident Injuries Act 2017

The Motor Accident Guidelines may provide for the determination of insurance premiums for third-party policies.

Motor Accident Guidelines may (without limiting the generality of subsection (1))—

specify the manner in which premiums are to be determined, and

require licensed insurers to specify how they have determined premiums, and

specify the factors to be taken into account in determining premiums (including in determining the reasonable cost of claims and claims settlement expenses), and

specify the maximum or minimum (or both) rate of estimated investment earnings, superimposed inflation, claims frequency, acquisition expenses, agents’ commission or other expenses or assumptions used in the determination of premiums, and

exclude, from being taken into account in the determination of premiums, acquisition expenses not directly relevant to the acquisition of third-party insurance business or other expenses of the insurer, and

specify the nature of the additional information and reports that the Authority may require licensed insurers to furnish with the premiums they file or to justify premiums they have filed (including with respect to estimated investment earnings, superimposed inflation, claims frequency, the verification of assumptions, estimated profit, capital allocation to third-party insurance business and other relevant matters), and

provide for a refund of part of the premium paid for a third-party policy during or after the period for which the policy is issued by reference to digital information recorded about the safe driving of the motor vehicle during that period or to other factors.

The Motor Accident Guidelines may only specify maximum rates of assumptions used in the determination of premiums if the Authority is satisfied that they are reasonable and will result in insurers having sufficient premium income to meet their liabilities in relation to third-party policies and to make a reasonable profit.

The cost of claims for the purpose of determining insurance premiums for third-party policies must take account of the effect of any exclusion or restriction on claims under this Act (including under section 3.32).