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. Continue reading Competence of the guarantee fund and indemnity procedure

Assumptions of liability for damages

Liability for damage exists if the following special conditions have been met:

  • injured person and tort-feasor (subjects)
  • harmful action
  • damage
  • unlawfulness of the tort-feasor’s action
  • established causal link between undertaken harmful action and harmful consequence
  • fault of tort-feasor.

Assumptions of liability for damages vary depending on whether liability for damages based on the criterion of guilt or causing damage.

Liability for damages based on causing damage criterion on the basis of the strict liability for dangerous object of property or dangerous activity, it is enough the existence of two conditions: the damage and the causal link established between undertaken harmful action and harmful consequence. Continue reading Assumptions of liability for damages

Definition and characteristics of annuity

In obligation law the annuity is understood as a form of compensation for damages whose total amount is not known at the time of making the request and it shall be paid periodically in predetermined amounts. Typically material damage that will be realized in the future is compensated by annuity.

The basis for the establishment of annuity claims is contained in the realization of the objective circumstances of unexpected adverse event.

The annuity has the following main features: