From August 1, 2024, the existing Bonus – Malus (BM) system will cease to operate. It will be transformed into a centralized insurance history service without the complex algorithms and formulas that made the current BM system difficult to understand. This is also done to facilitate the exchange of information between member states of the Green Card system, the Latvian Motor Insurance Bureau (LTAB) said. When assessing the risks of their clients, insurers will continue to take into account the insurance history of the owner or registered holder of the vehicle, which includes includes past insured events and the number of days of insurance, as well as other criteria/risk factors at the discretion of each insurer (for example, whether the owner has penalty points, the purpose and place of use of the vehicle, etc.). The personal insurance history will contain data from May 1, 2004 and will be available free of charge on the website of the Latvian Motor Insurers Bureau (LTAB) www.ltab.lv and in the LTAB OCTA application to all owners or registered holders of vehicles. "The BM system that existed before in Latvia was based on complex algorithms and formulas, which made it difficult to understand. With the transformation of the BM system, the display of insurance history data will become simple and clear. The number of insurance days and the number of insured events for the period from 01.05.2004 will be displayed for all vehicles for which a person is registered as the owner or holder,” says LTAB Chairman of the Board Jānis Abāšins. The current BM system provided for an annual check of insurance history data – the number of road traffic accidents (insured events) and the number of insured days – for the last 11 years. From now on, personal insurance history data for the period from 05/01/2004 will be updated daily. “The reorganization of the VM system will not affect the procedure for determining insurance premiums (policy prices) by insurers, since, as before, each insurer will independently assess the client’s insurance risk and determine the amount of the insurance premium,” explains the chairman of the board of LTAB.
