QCOSTARICA – Policy holders of the Instituto Nacional de Seguros (INS) supplementary vehicle insurance, starting today, take note of a number of changes that go in effect.
The State insurer, apparently, can make changes to active policies at will.
The changes, besides altering coverage and deductibles, for example, could also mean a higher premium cost in some cases and in others a decrease.
The first major change to the non-obligatory policy is the removal of the “franquicia” deductible, by which the insured assumed part of the risk in the exchange for a lower premium.
All supplementary vehicle insurance products will now have a 20% deductible, as was the case before 2008. Also, the minimum deductible will be between ¢150,000 colones for ‘standard’ and ¢300,000 for ‘quality’ vehicles.
The INS will continue to offer a zero deductible at a premium cost.
Another change, is in the event of an accident, the vehicles cannot be moved until an INS inspector has arrived at the scene. This goes contrary to the new traffic rule that allows vehicles involved in a “minor” accident (no personal injury, for example) to be moveed the vehicles if both parties agree, signing a document to that effect. See our report Minor Traffic Accident Reconciliation Rule Starts Jan. 7
It is unclear in the INS statement, but the no move rule seems to apply only to vehicles with a zero deductible. In the information packet, the INS says ‘that if the vehicles a moved, the zero deductible will not apply’.
Among other changes is a reduction of benefits for the Asistencia en Carreteras Extendida (Extended Road Assistance).
The changes by the INS will also impact customers of the other six auto insurance operators in the country, because the INS continues to be the benchmark for vehicle insurance coverage, given that the State insurer handles almost 90% of the market share.
The change does not affect coverage of the obligatory insurance – third-party liability – policy included in the Marchamo, the annual circulation permit.
Source: La Republica
