Automatic insurance premium increases limited to 10 pct.

. ()

Dutch insurers are not allowed to automatically increase insurance premiums of customers by more than 10 percent, Dispute Committee Kifid ruled in two cases. If the increase is more than 10 percent, the insured must sign that he or she agrees to it, NU.nl reports. 

In the fist of these two cases insurer Achmea increased the insurance premium of a customer with 20.22 percent. In the second Meeus Groep increased a scooter insurance by 173.4 percent.

In both cases the Dispute Committee ruled that such changes in the insurance contract can not be made silently. The insured must be informed before hand and he or she must agree to the changes. Only limited modifications can happen automatically, Kifid ruled.

Kifid's ruling is binding in these two cases. In similar cases, the ruling will serve as legal precedent.

Tags: