Indemnity for Damage to Property

The basic rules applicable to indemnity for damage to property are regulated by the provisions of the Law on Contracts and Torts (Articles from 185 to 198).

By the provisions of Articel 185 of the Law on Contracts and Torts indemnity for damage to property is defined as re-establishing of the previous situation and an indemnity in money. A responsible person shall be liable to re-establish the situation existing prior to the occurence of damage. Indemnity for damage to property in money shall be paid to the person suffering loss in following cases:

  • Should re-establishing of the previous situation fail to eliminate the damage entirely, the responsible person shall be liable to pay an indemnity in money to cover for the rest of the damage.
  • Should restitution be impossible, or should the court find it necessary for the responsible person to do that, the court shall order such person to pay to the person suffering loss an adequate amount of money as compensation for loss.
  • At the request of the person suffering loss, the court shall award compensation in money to him, unless the circumstances of the specific case justify the restitution.

Compensation for damage to property shall be due from the moment of the damage taking place. Continue reading Indemnity for Damage to Property

Insurance of persons – general rules and excluded risks

The Law of Contract and Torts by the provisions of Articles 942 to 953 governs general rules as well as risks that are not covered by the life insurance contract.

General rules

Determination of the Insured Amount

In contracts of insurance of persons (life insurance and accident insurance), the amount of insurance to be paid by the insurer on the occurrence of the insured event, shall be determined in the insurance policy by agreement between the contracting parties.  Continue reading Insurance of persons – general rules and excluded risks

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