Law on Compulosory Traffic Insurance

Competence of the guarantee fund and indemnity procedure

The Guarantee Fund within the Association of Serbian Insurers was established in accordance with the Law on Property and Personal Insurance of 1996 and started its operations in July 1997. Pursuant to the law, operation of the Guarantee Fund is entrusted to the Association of Serbian Insurers as part of public functions.

The Guarantee Fund within the Association receives claims for compensation, assesses, liquidates and pays the sum insured i.e. compensation of damages, and settles recourse claims relating to the use of Guarantee Fund assets.

The Guarantee Fund is obliged to compensate a claim to the same extent and under the same conditions which would apply if the contract on compulsory insurance had been concluded on the date of the loss event, namely, up to the amount to which liabilities of insurance companies are limited by the law.

Competence of the Guarantee Fund and indemnity procedure

Competence of the Guarantee Fund and indemnity procedure before the Guarantee fund were regulated by the provisions of the the Law on Compulosory Traffic Insurance.

The Guarantee Fund was established for the purpose of financial protection of passengers in public transport and third party claimants in cases where the damage has been caused by the use of uninsured or unidentified means of transport, as well as for damages payable by the insurance company in respect of which bankruptcy proceedings have been initiated under Law on compulosory traffic insurance.

The claim for compensation shall be filed to the Guarantee Fund by the claimant. Claimants shall be required to support their claims by appropriate evidence showing that such damage was caused by the uninsured, unidentified or means of transport insured with an insurance company against which bankruptcy proceedings have been initiated.

If the Guarantee Fund does not respond to the claim within 90 days of claim receipt, the claimant may file a lawsuit against the Guarantee Fund and inform the National Bank of Serbia thereof.

Persons who are not nationals of the Republic of Serbia and who have suffered damage in the territory of the Republic of Serbia by using a motor vehicle, aircraft, boat or other means of transport in cases which are in competence of the Guarantee Fund, shall be entitled to payment of the sum insured i.e. compensation pursuant to the provisions of the Law on Compulosory Traffic Insurance.

Payment of the sum insured or compensation in cases where no compulsory insurance was contracted

Any damages caused by the use of a motor vehicle, aircraft, boat or other means of transport in cases where the owners contracted no compulsory insurance and they were required to do so pursuant to the provisions of the Law on Compulosory Traffic Insurance shall be paid in the same amount and under the same terms as if the compulsory insurance was contracted on the date of the loss event.

After the sum insured or compensation has been paid, the recourse shall be claimed from the owner of a motor vehicle, aircraft, boat or other means of transport who failed to contract compulsory insurance in the amount equal to the amount of compensation paid out, interest accruing since the payment of compensation, and fees and costs of proceedings.

Compensation for damages caused by the use of unknown means of transport

Damages due to death, bodily injury or health hazard caused by the use of an unidentified motor vehicle, aircraft or boat shall be paid up to the amount to which the liabilities of the insurance company are limited by the Law on Compulosory Traffic Insurance in respect of any damage caused by the use of such means of transport, as at the date of the loss event.

In case of damages caused by the use of an unknown motor vehicle, the Guarantee Fund shall indemnify the damage to property if it has compensated a party in the accident for grave bodily injury requiring hospitalisation with the 10% franchise, providing it is not more than EUR 500 in the dinar equivalent on the day of the loss event.

In cases it is established, after the settlement of compensation, that a motor vehicle, aircraft or a boat has caused the damage, the recourse shall be claimed from the insurance company with which compulsory insurance was contracted, in the amount equal to the compensation paid out, interest accruing since the payment of compensation, and costs of the proceedings.

Payment of the sum insured or compensation by insurance companies against which bankruptcy proceedings have been initiated

Where compulsory insurance was contracted with an insurance company in respect of which bankruptcy proceedings have been initiated, damages caused by the use of a motor vehicle, aircraft, boat or other means of transport shall be compensated by the Guarantee Fund.

The rights of the claimant in respect of the bankruptcy estate shall be transferred to the Guarantee Fund that has paid the sum insured and/or compensation. The Guarantee Fund holds the right to file this claim until the completion of bankruptcy proceedings of the insurance company.

Read more:
Compensation in Traffic »
Compulsory insurance against liability »
Types of damage »

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