EXPERIENCES WITH THE BONUS-MALUS SYSTEM

ERFAHRUNGEN MIT DEM BONUS-MALUS-SYSTEM

Car insurance was reformed in Austria on 1st August 1977. With the bonus-malus system, grading of premiums is built up based on the accident records of individuals. The question is discussed whether premium differentiations between individuals based on claim records is reasonable or whether this is contrary to the principle of shared risk. The distribution of claims (a small number of major claims, but a greater number of minor claims on 1 to 2 years' premiums) already increases total cost with minor changes (inflation). The bonus-malus system ought to be therefore a pragmatically effective, economically based form of correction to the standard rates of insurance, based on subjective circumstances. The first results: in 1979, 20 per cent received a bonus, 20 to 30 per cent stayed on the basic rate and only 2 per cent have the malus surcharge. This confirms the grading rules calculated in advance from values based on experience. Concerning hit-and-run drivers: before-after statistics are not available. In a study of the motives for fleeing the accident scene it is seen that fear of losing the bonus is one of the least important reasons put forward. It is hoped that positive effects will result from appeals for the solidarity of all road users. The efficiency of this system can be established for both insured and insurers in pre- and post-assessments, but at the earliest after 1979, when all the bonus allowances come into effect. (TRRL)

  • Availability:
  • Corporate Authors:

    Manzsche Verlags-und Universitaetsbuchhandlung

    Kohlmart 16
    1014 Vienna,   Austria 
  • Authors:
    • Faber, W
  • Publication Date: 1978

Language

  • German

Media Info

  • Pagination: p. 40-44
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00309647
  • Record Type: Publication
  • Source Agency: Bundesanstalt für Straßenwesen (BASt)
  • Report/Paper Numbers: Special Issue
  • Files: ITRD, TRIS
  • Created Date: Oct 8 1980 12:00AM