Compensation for damages caused by motor vehicles

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.

International certificate of motor third party liability insurance cover

Does the driver who enters the territory of the Republic of Serbia by a motor vehicle must have a valid international certificate of motor third party liability insurance that is valid for the territory of the European Union or any other proof of the existence of such insurance depends on whether he enters the territory of the Republic of Serbia by a motor vehicle, which is normally located on the territory of the State whose national insurance bureau is not a signatory to the Multilateral Agreement or the state whose national insurance bureau is a signatory to the Multilateral Agreement.

Multilateral agreement means an agreement concluded between a national insurance bureau of a member state of the European Economic Area and other associated states, according to which each national insurance bureau guarantees for damages incurred in its territory by the use of motor vehicle normally based in the territory of another state, a signatory to the agreement, regardless of whether the vehicle is insured or not.

Territory in which the motor vehicle is normally based” means the territory of a member state of the European Union (EU):

whose registration plate is attached to the motor vehicle, regardless of whether the plates are permanent or temporary
which issued the insurance label or other identification mark similar to a registration plate attached to the motor vehicle, in case where registration is not required for a particular type of vehicle
in which the user of a motor vehicle holds residence, in case where it is not required that a particular type of vehicle has a registration plate or other identification mark similar to a registration plate
in which a traffic accident took place, in case where the motor vehicle involved in the accident does not have a registration plate attached to it or has a registration plate which does not correspond or no longer corresponds to the vehicle.

A driver entering the territory of the Republic of Serbia by a motor vehicle normally based in the territory of a state whose national insurance bureau is not a signatory to the Multilateral Agreement, must hold a valid international certificate of motor third party liability insurance which is valid across the territory of the EU, or some other type of document which serves as evidence of insurance coverage.

The international certificate of motor third party liability insurance which is valid across the territory of the EU, is substituted by a registration plate for a motor vehicle normally based in the territory of the state whose national insurance bureau is a signatory to the Multilateral Agreement.

In case the motor vehicle was sent from the territory of an EU member state into the Republic of Serbia, the risk shall be deemed to be located in the Republic of Serbia during the period of 30 days from the date the vehicle is received by the buyer, even if the vehicle is not registered in Serbia.

The international certificate of motor third party liability insurance which is valid across the territory of the EU and document which serves as evidence of insurance coverage shall be understood to mean a certificate and evidence recognised as valid by the Association of Serbian Insurers, in accordance with concluded international agreements.

Any obligations arising from the cited certificates shall be guaranteed by the Association of Serbian Insurers up to the amount which may not be lower than:

For personal injury, caused by a single loss event, regardless of the number of damaged parties – EUR 1,000,000 and
For damage to property, caused by a single loss event, regardless of the number of damaged – parties EUR 200,000.

Border insurance

A driver of a vehicle normally based in the territory of a state whose national insurance bureau is not a signatory to the Multilateral Agreement, who does not hold a valid international certificate or evidence of motor third party liability insurance, must conclude a contract for motor third party liability insurance (border insurance cover) which is valid in the territory of EU member states, for the duration of the driver’s stay in the territory of the EU member state, which shall not be shorter than 15 days.

Legal compliance of the drivers of motor vehicles with foreign registration plates, shall be overseen by the body responsible for internal affairs in the Republic of Serbia.

When motor vehicles, normally based in the territory of another EU member state or a third country, enter the territory of the Republic of Serbia from the territory of another EU member state, the body responsible for internal affairs in the Republic of Serbia shall undertake non-systematic checking which is not aimed exclusively at motor third party liability insurance verifications.

Compensation for damages caused by using foreign registration motor vehicles

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.

Should the Association of Serbian Insurers fail to pay compensation within 30 days from claim receipt, the claimant may file a lawsuit against the Association of Serbian Insurers or 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 and inform the NBS thereof.

Where the minimum sum insured of the respective country exceeds the sum insured from Article 22 of Law on compulsory traffic insurance, the damage shall be compensated up to the contracted insurance amount, and/or pursuant to the insurance policy of the motor vehicle with foreign plates.

Compensation on the grounds of border insurance

Compensation for any damages caused by using a motor vehicle with foreign registration plates, provided that the owner of such vehicle has contracted motor third party liability insurance with a domestic insurance company, shall be paid by such insurance company pursuant to the provisions of Law on compulsory traffic insurance relating to insurance contracted by the owners of locally registered motor vehicles.

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.