F.10. Other provisions
| (CZK million) | 31. 12. 2014 | 31. 12. 2013 |
|---|---|---|
| Provisions for taxation | 52 | 50 |
| Provisions for commitments | 710 | 860 |
| Provision for restructuring charges | 36 | 61 |
| Other provisions | 28 | 41 |
| Total | 826 | 1,012 |
| Current portion | 129 | 164 |
| Non-current portion | 697 | 848 |
| (CZK million) | 31. 12. 2014 | 31. 12. 2013 |
|---|---|---|
| Carrying amount as at 1 January | 1,012 | 1,256 |
| Foreign currency translation effects | (1) | 4 |
| Variations | (185) | (248) |
| Carrying amount as at end of reporting period | 826 | 1,012 |
Provisions for commitments consist of provisions for the MTPL deficit of CZK 664 million (2013: CZK 824 million) and other provisions.
Provision for MTPL deficit
On 31 December 1999, statutory MTPL insurance was replaced by contractual MTPL insurance in the Czech Republic. All rights and obligations arising from statutory MTPL insurance prior to 31 December 1999, including the deficit of received premiums to cover the liabilities and costs, were transferred to the Czech Bureau of Insurers (“the Bureau”).
On 12 October 1999, the Parent Company obtained a license to write contractual MTPL insurance in the Czech Republic and, as a result, the Parent Company became a member of the Bureau (see also note F.31.2.1.).
Each member of the Bureau guarantees the appropriate portion of the Bureau’s liabilities based on the member’s market share for this class of insurance.
Based on information publicly available and information provided by members of the Bureau, the Group created a provision adequate to cover the cost of claims likely to be incurred in relation to the liabilities ceded. However, the final and exact amount of the incurred cost of claims will only be known in several years.