Compensation in Traffic

Compensation in traffic must be paid to injured parties in the cases of legal obligation to conclude contracts on compulsory insurance between the insurance company and the owner of the means of transport.

The conditions and the procedure for the recovery of damages in traffic, as well as the limits of liability of insurance companies in respect of the maximum amount of compensation that are obliged to pay are regulated by the Law on compulsory traffic insurance.

The following types of compulsory traffic insurance are stipulated by the the Law on compulsory traffic insurance:

The owner shall also include any user or other person registered as the owner of the means of transport in accordance with law.

Insurance against liability for damage caused to third parties concluded by the owner of the means of transport shall cover, under the conditions and in the way provided by Law on compulsory traffic insurance, the damages to third persons made by the means of transport, regardless of who was in the driver’s seat.

The owners of means of transport, used for public transport, and the owners of other means of transport (motor vehicles, aircrafts, boats) shall be required to sign a contract on compulsory insurance before the means of transport is used for transport.

The amount payable by the insurance company under compulsory insurance shall be limited to the sum insured and/or assured applicable at the date of the loss event unless a higher sum has been provided for under the insurance contract. The sum insured and/or assured means the maximum amount payable by the insurance company for a single loss event.

The RSD equivalent of the sum insured and/or assured, the compensation for small claims and franchise shall be calculated at the middle exchange rate of the National bank of Serbia on the date of the loss event.

Accident Insurance for Passengers in Public Transport

Owners of means of transport used for public transport of passengers shall enter into a contract to provide accident insurance for passengers in public transport.

Passengers on public transport, in terms of the Law on Compulsory Traffic Insurance are:

  • persons on board means of transport used for public transport who intend to travel, regardless of whether they have bought a ticket or not
  • persons on the grounds of a station, pier, port, airport or close to the means of transport prior to boarding who intend to travel
  • persons who have ended their trips and left the means of transport, but remain close to the means of transport being within the grounds of a station, pier, port, or airport.

The passengers shall also include persons entitled to travel free-of-charge.
The passengers shall not include any persons whose job involves their presence in the means of transport.

The sum assured may not be lower than:

  • in the event of death of a passenger EUR 8,000
  • in the event of passenger’s permanent loss of general working ability (disability) EUR 16,000
  • in the event of temporary inability to work and actual and necessary medical treatment costs for the passenger EUR 4,000.

Right to payment of the sum assured

A passenger affected by accident, or a payee specified by the policy conditions in case of such passenger’s death, shall be entitled to request direct payment under the insurance contract by the insurance company with which insurance has been contracted.

In cases where an accident occurs and insurance has not been contracted by the owner of the means of transport, or such owner has contracted insurance with an insurance company in respect of which bankruptcy proceedings were initiated, the person may request payment of the sum assured from the Guarantee Fund according to the provisions of Law on Compulsory Traffic Insurance.

Third Party Liability Insurance for Owners of Motor Vehicles Third Party Liability Insurance for Owners of Motor Vehicles

Obligation to Provide Motor Third Party Liability Insurance

Owners of motor vehicles shall be required to enter into a contract providing insurance against liability for damage caused to third parties by using motor vehicles resulting in death, bodily injury, health hazard, destroyed or damaged goods, excluding damage caused to any goods taken to be transported. Notwithstanding, motor third party liability insurance covers damage caused to the goods taken to be transported provided that such goods are personal belongings of the persons being in such vehicles.

The damage shall also include the damage caused to third parties by goods falling off motor vehicles.

The motor third party liability insurance shall also include damages caused by the use of a motor vehicle used and/or driven by an unauthorised person.

Should there be a change of the owner of a motor vehicle within the motor third party liability insurance contract validity period, the rights and obligations under the contract shall be transferred to the new owner and shall apply until the current insurance period has expired.

Persons not Entitled to Claim Damages

The following persons shall not be entitled to claim damages under motor third party liability insurance:

  • owner of a motor vehicle whose usage caused him damage, for damaged property
  • driver of a motor vehicle whose usage caused him damage
  • person entering a motor vehicle of his free will and aware that the vehicle was illegally taken away, and the vehicle being the one the use of which caused damage to that person
  • person affected by damage:
    – caused by motor vehicles used during officially approved automobile and go-kart racing or parts of such competition on closed race-tracks, aimed at developing maximum speed, as well as during the tests (trainings) for such racing
    – due to the effect of nuclear energy during transport of nuclear material, and/or the effect of dangerous cargo during its transport
    – caused by military operations, military manoeuvres, riots, or acts of terrorism provided there is a cause-and-effect relationship between such actions and the damage that occurred.

The procedures and conditions for exercising the right to compensation for damage caused by using of a motor vehicle registered abroad are regulated by the provisions of Articles 36 to 41 of the Law on compulsory traffic insurance.

Subject matter are the following questions:

  • international certificate of motor third party liability insurance cover
  • validity of international certificate of motor third party liability insurance cover
  • border insurance
  • compensation for damages caused by using foreign registration motor vehicles
  • compensation on the grounds of border insurance
  • compensation for damages caused by uninsured foreign registration motor vehicles.

Compensation for Damage Caused by Using of a Motor Vehicle Registered Abroad

A person who suffered any damage caused by a motor vehicle with foreign registration plates used in the territory of the Republic of Serbia for which there is a valid international certificate or other evidence of motor third party liability insurance, shall submit his compensation claim:

  • to the insurance company which has obtained the authorisation of the Association of Serbian Insurers to perform activities related to the international agreement on the liability insurance of owners of motor vehicles for damages arising from the use of motor vehicles in the country or abroad
  • to the Association of Serbian Insurers, if the insurance company to which any claims for compensation have been submitted, fail to pay compensation within 60 days from claim receipt.

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Compensation for damages caused by using motor vehicles registered abroad »

Compensation for Damages Caused by Uninsured Foreign Registration Motor Vehicles

Payment of compensation for damages caused by using foreign registration motor vehicles, in cases where owners of such vehicles have not contracted motor third party liability insurance, shall be provided by the Guarantee Fund.