Hungary Insurance Information

CIA link to demographic/economic data on Hungary

General Hungary Insurance Information

• Compulsory Insurance:
  
  1. Third Party Automobile Liability;
  2. Workers’ Compensation;
  3. Liability for Aircraft, Watercraft, Hunter’s, Physicians, Auditors, Lawyers, Insurance Brokers, Private companies and individuals performing healthcare and social services.
• Non-Admitted Insurance:
  Prohibited except for MarineCargo.
• Policy Wordings & Rates / Tariffs Controlled:
  All wordings are tariffs are to be authorized by State insurance supervisors. With the exception of Motor Third Party Liability business, there are no tariffs or unofficial rating agreements.
• Policy Language:
  Hungarian although English or German translations are possible.
• Types of Insurance Restricted to Government Institutions:
  Workers’ Compensation.
• Policy Currency:
  forint (HUF). U.S. $ insurance is not allowed.
• Currency Restrictions / Exchange Controls:
  No restrictions.
• Policy Period:
  Annual.
• Cancellation Period:
  30 day notice (suggest - in writing)
• Premium Tax, etc. paid by Insured:
  None at this time but a New Insurance Act is forthcoming.
• Insurance Companies:
  All Insurers licensed in Hungary are considered Hungarian.
• Brokers:
  The supervisory authority must license local brokers. Foreign brokers must take the additional step of registering and obtaining approval from the Ministry of Finance.
• Brokerage Commissions:
  
• Broker of Record Letters:
  This is becoming customary. A good business practice anyway.
• Reinsurance:
  No restrictions. A certain amount of facultative reinsurance is placed in the local market.
• Local Natural Hazards:
  Earthquake, flood
• Other Information:
  

Property Insurance

• Fire:
  Standard fire perils include - fire, lightning, aircraft, explosion, earthquake, flood, storm / tempest, burst water pipe, vehicle impact, weight of snow / avalanche are available in the market.
• All Risk:
  Available but not common for indigenous risks.
• Coinsurance:
  Available.
• Blanket Insurance:
  Available.
• Business Interruption:
  UK Loss of Profits including Extra Expense.
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems: Available.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Local policy wordings.

General / Public Liability

• Available Wordings:
  Local policy wordings primarily based on German or UK forms.
• Comments:
  Either occurrence or claims made forms are available.

Automobile / Motor

• Compulsory Limit Unlimited. Each vehicle must be insured separately.
• Comments:
  Coverage applies to the Insured and any licensed individual driving with the Insured’s permission. Passengers are deemed to be Third Parties. Automobile Physical Damage is written as a separate policy.

Workers’ Compensation

• Comments:
  The Government Social Security Scheme provides for Pensions, Disability and Medical benefits. Participation is compulsory and the cost is paid by employers and employees. All employees (including Foreign Nationals) are protected under the Scheme. There is not coverage for workers abroad. Medical Expenses and Occupational Disease benefits are included. Employees are allowed to sue.

Marine

• Forms Available:
  Local forms adapted from various Marine market wordings.

Crime

• Available Coverages:
  Fidelity and Surety are not usually available. Burglary is available.