COMPULSORYVEHICLE INSURANCE ACT("Off. Herald of RS", Nos. 51/2009, 78/2011, 101/2011, 93/2012 and 7/2013 - decision of the CC) |
Article 1
The present Act regulates compulsory vehicle insurance, establishes the Guarantee Fund, regulates its authority and financing method, and entrusts public functions to the Association of Serbian Insurers (hereinafter referred to as the "Association").
Types of Compulsory Vehicle Insurance
Article 2
The types of compulsory insurance (hereinafter referred to as "compulsory insurance"), within the meaning of this Act, shall be the following:
1) Accident insurance for passengers in public transport;
2) Insurance for the owners of motor vehicles against liability for damage caused to third parties;
3) Insurance for aircraft owners against liability for damage caused to third parties and passengers;
4) Insurance for boat owners against liability for damage caused to third parties.
The owner referred to in paragraph 1 of this Article also means any user or other person registered as the owner of a means of transport according to regulations.
Under the conditions and in the manner stipulated by this Act, the insurance of the owner of a means of transport against liability for damage caused to third parties covers the damages to third persons made by such means of transport, irrespective of who operates the means of transport.
Article 3
Certain words in terms of this Act shall have the following meaning:
1) "Traffic accident" shall represent an event where damage has resulted from the use of a means of transport;
2) "Means of transport", including a motor vehicle, aircraft, boat or other means of transport anticipated by this Act, shall have the meaning as provided by the act governing the relevant type of traffic, whereas a motor vehicle shall also include a motor vehicle trailer;
3) "User of a means of transport" shall be a natural or legal person using the means of transport with the owner’s consent;
4) "Liable insurer" shall be an insurance company with which the owner of the means of transport, which incurred the damage, signed a contract on compulsory insurance;
5) "Injured party" shall be any person having right to compensation for damages under this Act;
6) "Multilateral agreement" shall mean an agreement concluded between national insurance bureaus of the member states of the European Economic Area and other associated countries, pursuant to which each national insurance bureau guarantees for damages incurred in its territory by the use of a motor vehicle regularly based in the territory of another state, which is a signatory to the agreement, irrespective of whether the vehicle is insured or not;
7) "Territory in which the motor vehicle is regularly based" shall mean a territory of a member state of the European Union:
- Whose registration plate is affixed to the motor vehicle, irrespective of the fact whether the plates are permanent or temporary,
- Which issued the insurance plate or other identification mark similar to a registration plate affixed to the motor vehicle, in case where registration is not necessary for a particular type of vehicle,
- Where the user of the motor vehicle has domicile, in case when a particular type of vehicle does not require a registration plate or other identification mark similar to registration plate,
- In which the traffic accident occurred, in case when the motor vehicle involved in the accident does not have a registration plate or has a registration plate not corresponding or no longer corresponding to the vehicle;
8) "Special Drawing Rights" (hereafter referred to as "SDR") shall represent a basic unit of account defined by the International Monetary Fund;
9) "Maximum Take-Off Mass" (hereinafter referred to as "MTOM") shall be the maximum mass of an aircraft permissible at take-off, which corresponds to the allowable weight specific to each type of aircraft and stated in the aircraft airworthiness certificate.
Article 4
The owners of means of transport used for public passenger transport, and the owners of other means of transport from Article 2, paragraph 1 of this Act, shall sign a compulsory insurance contract before using the means of transport in traffic.
In the event that bankruptcy proceedings are initiated against the insurance company, the concluded contracts on compulsory insurance shall remain in effect until their expiration date.
Effects of Compulsory Insurance Contract
Article 5
An insurance company shall conclude a compulsory insurance contract in accordance with insurance terms and conditions and premium rates applicable at the time such insurance contract is signed.
An insurance company cannot reject an application to enter into a compulsory insurance contract if the policyholder accepts the insurance terms and conditions and premium rates of the insurance company for the concerned type of insurance valid at the time of submission of the application for the insurance contract.
Insurance terms and conditions shall be an integral part of the compulsory insurance contract, and the insurance company shall deliver them to the policyholder when concluding the contract.
The provisions of the insurance terms and conditions providing lesser rights to injured parties than the rights provided by this Act shall have no legal effect.
The liability undertaken by the insurance company pursuant to the compulsory insurance contract shall begin upon the expiry of the 24th hour of the day specified in the insurance document as the date of commencement of insurance coverage, and shall cease upon the expiry of the 24th hour of the day indicated as the expiration date of insurance coverage, if not agreed otherwise.
Notification about Insurance Terms and Conditions and Premium Rates
Article 6
An insurance company shall submit to the National Bank of Serbia the terms and conditions of compulsory insurance, premium rates and premium system, with technical basis for the insurance premium, no later than 90 days before the implementation, exclusively for the verification of their compliance with regulations, actuarial principles and the insurance code of practice.
At the same time, the insurance company shall deliver to the National Bank of Serbia the opinion of a certified actuary on the adequacy of the insurance premium for the final settlement of all liabilities ensuing from the compulsory insurance contract and the costs of implementing the insurance, as well as the Three Year Business Plan of the insurance company illustrating the adequacy of the calculated premiums.
If the National Bank of Serbia establishes that the insurance terms and conditions, the premium rates and the premium system referred to in paragraph 1 of this Article are not made in compliance with regulations, actuarial principles and insurance code of practice, it shall issue an order to the insurance company to bring them in line with the regulations, the principles or the code within 30 days.
If the National Bank of Serbia issues the order referred to in paragraph 3 of this Article, the insurance company may not apply the terms and conditions of the compulsory insurance and the corresponding premium system on account of which the order has been issued, until the order referred to in that paragraph is abided by.
Article 7
The liability of the insurance company in respect of the compulsory insurance shall be limited to the sum insured, i.e. the sum assured in force on the day of loss event, unless a higher sum is provided by the insurance contract.
The sum insured, i.e. the sum assured referred to in paragraph 1 of this Article shall represent the maximum amount payable by the insurance company per a single loss event.
The RSD equivalent of the sum insured, i.e. the sum assured, the compensation request for small claims and deductibles referred to in Article 92, paragraph 2 hereof, shall be calculated at the middle exchange rate of the National Bank of Serbia applicable on the day of loss event.
Obligations of the Owner, i.e. Person Operating the Means of Transport
Article 8
While using the means of transport, a person operating the means of transport (hereinafter referred to as a "driver") shall have the insurance policy or other evidence of a concluded insurance contract on hand, and shall present it at the request of an authorized official.
In case the means of transport is operated by a driver who is not the owner of that means of transport, the owner of the means of transport shall provide the driver with the insurance policy during the use of the means of transport, i.e. with some other evidence of a concluded insurance contract, while the owner of a motor vehicle with the European Accident Statement also.
Notwithstanding paragraph 1 of this Article, the person operating an aircraft shall present the insurance policy or other evidence of a signed compulsory insurance contract referred to in Article 2, paragraph 1, items 1) and 3) of this Act, at the request of an authorized official before the aircraft take-off or after landing.
In case of a traffic accident, the driver shall provide personal data and data regarding the compulsory insurance to all persons involved in the accident who are entitled to make a claim for compensation under this Act.
Duty of the Insurance Company to Collect Data
Article 9
The insurance company shall collect, process, and keep data on policyholders, insured means of transport, loss events and settlement of insurance claims based on the compulsory insurance.
In performing the activity under paragraph 1 of this Article, the insurance company shall organize, keep and maintain a database on:
1) Policyholders;
2) Means of transport;
3) Loss events;
4) Assessment and settlement of claims.
Data from paragraph 2 of this Article shall be collected, processed, kept, and used in accordance with the act regulating the protection of personal data and regulations on the method of collecting, keeping and delivering the insurance data prescribed by this Act.
The Association shall prescribe in detail the content of data referred to in paragraph 2 of this Article, as well as the method of their collecting, keeping and delivering.
The Method of Collecting, Keeping and Using the Insurance Company's Database
Article 10
The data referred to in Article 9, paragraph 2 of this Act, shall be collected directly from persons such data relate to, and from other persons (participants and witnesses of a loss event).
When the records of data referred to in paragraph 1 of this Article are kept by the authorities competent for traffic security, judicial authorities, health, retirement and disability insurance organizations, healthcare and social service institutions, the data shall be collected from these authorities and organizations.
Authorities, organizations and individuals holding data or databases referred to in paragraph 1 of this Article shall deliver such data, upon request, to the insurance company.
Data under paragraph 1 of this Article shall be kept for ten years upon termination of the insurance contract, i.e. after the claim settlement procedure is completed.
The data under paragraph 1 of this Article may be used by injured parties, without compensation, when filing a claim for compensation with an insurance company.
Exemption from Compulsory Insurance
Article 11
The provisions of this Act shall not apply to the means of transport of the Serbian Armed Forces.
Application of the Provisions of the Insurance Act
Article 12
The provisions of the act regulating insurance activities shall apply to the incorporation, operation and supervision of an insurance company that does business in compulsory insurance (hereinafter referred to as the "Insurance Act"), unless certain issues are regulated otherwise by this Act.
Article 13
The act on contracts and torts and other relevant acts regulating the contracts on specific types of insurance shall apply to compulsory insurance contracts, unless otherwise provided by this Act.
II ACCIDENT INSURANCE FOR PASSENGERS IN PUBLIC TRANSPORT
Obligation of Accident Insurance for Passengers in Public Transport
Article 14
The owners of means of transport used in public passenger transport shall conclude a contract on accident insurance for passengers in public transport.
The contract referred to in paragraph 1 of this Article shall be concluded by the owners of:
1) Buses used for public transport on city, suburban, intercity and international line and special line transport;
2) Buses used for transporting employees to and from work;
3) Buses used for transporting children and students to and from kindergartens and schools;
4) Buses used for transporting tourists;
5) Passenger vehicles used for taxi transportation and rent-a-car vehicles;
6) Rail vehicles for passenger transport
7) All types of vessels used for passengers transport on regular or special service lines, including vessels for cruises and transport of tourists;
8) All types of rented vessels under item 7) of this paragraph;
9) Aircrafts for public passenger air transport (scheduled flights, charter flights and air taxi);
10) Tourist aircrafts used for shorter over-flights and sightseeing flights, and rented aircrafts;
11) Other means of transport, regardless of the propulsion system, used for transport of paying passengers, in the form of a registered business.
The execution of the contract under paragraph 1 of this Article shall not exclude the obligation of concluding a liability insurance contract.
License for joining traffic, i.e. other document of the competent authority which serves as an evidence that the vehicle under paragraph 2 of this Article is eligible to join traffic, may be issued after submission of evidence to that authority on the signed insurance contract referred to in paragraph 1 of this Article.
The owner of the means of transport under paragraph 2 hereof shall indicate the data on the signed insurance contract under paragraph 1 of this Article in a visible place in the means of transport and on the ticket, showing in particular the name of the insurance company and the rights of passengers ensuing from the contract.
Definition of Passenger in Public Transport
Article 15
Within the meaning of this Act, passengers in public transport shall be:
1) Persons on board of means of transport used for public transport who intend to travel, irrespective of the fact whether they have already purchased a ticket or not;
2) Persons located in the area of a station, pier, port, airport or in immediate vicinity of the means of transport, prior to boarding, who intend to travel;
3) Persons who made the trip and left the means of transport but remain in the immediate vicinity of the means of transport, within the area of the station, wharf, port, or airport.
Persons entitled to a free ride shall also be considered as passengers referred to in paragraph 1 of this Article.
Persons employed on board of the means of transport shall not be considered as passengers under paragraph 1 of this Article.
Article 16
The minimum amount of the sum assured under the contract on accident insurance for passengers in public transport shall be established per passenger by the Government, at the proposal of the National Bank of Serbia.
The sum assured referred to in paragraph 1 of this Article may not be lower than:
1) |
In the event of passenger’s death |
8,000 EUR; |
2) |
In the event of passenger's permanent loss of general ability to work (disability) |
16,000 EUR; |
3) |
in the event of temporary incapacity for work and actual and necessary costs of passenger’s medical treatment |
4,000 EUR. |
The decision under paragraph 1 of this Article shall be published in the "Official Herald of the Republic of Serbia".
Entitlement to Payment of the Sum Assured
Article 17
A passenger affected by accident, i.e. a beneficiary specified by the insurance terms and conditions in the event of the passenger's death, shall have the right to request direct payment under the insurance contract by the insurance company, with which the insurance contract under Article 14, paragraph 1 of this Act has been concluded.
If the owner of the means of transport has not concluded an insurance contract as referred in Article 14, paragraph 1 of this Act, or such owner has concluded the insurance contract with an insurance company against which bankruptcy proceedings were initiated, and an accident occurs, a person referred to in paragraph 1 of this Article may require payment of the sum assured from the Guarantee Fund pursuant to the provisions of this Act.
The passenger i.e. the insurance beneficiary shall be entitled to the sum assured specified in Article 16 of this Act regardless of whether such passenger or beneficiary has the right to compensation based on carrier's liability.
III THIRD PARTY LIABILITY INSURANCE FOR OWNERS OF MOTOR VEHICLES
1. Contract on Motor Third Party Liability Insurance and its Effect
Obligation of Motor Third Party Liability Insurance
Article 18
The owner of a motor vehicle shall conclude a contract on insurance against liability for damages caused to third parties by the use of the motor vehicle in the form of death, bodily injury, health impairment, destroyed or damaged property, excluding damage caused to any items taken to be transported (hereinafter referred to as "motor third party liability insurance").
Notwithstanding the provisions of paragraph 1 of this Article, motor third party liability insurance shall also cover the damage caused to the items taken to be transported, provided that such items are personal belongings of the persons who were in the vehicle.
The damage under paragraph 1 of this Article shall also include the damage incurred to a third party by objects falling off a motor vehicle.
Contract on Motor Third Party Liability Insurance - Insurance Policy
Article 19
The motor third party liability insurance contract - insurance policy shall be uniform in the territory of the Republic of Serbia.
National Bank of Serbia shall prescribe the contents of the insurance policy form referred to in paragraph 1 of this Article and the manner of keeping records of issued policies.
The insurance policy form referred to in paragraph 1 of this Article shall be printed by the National Bank of Serbia - Institute for Manufacturing Banknotes and Coins.
Concluding a Contract on Motor Third Party Liability Insurance and Registering a Motor Vehicle
Article 20
The owner of a motor vehicle subject to registration shall, at the time of registration, extension of the registration period or obtaining temporary registration plates, submit evidence of the signed motor third party liability insurance contract to the authority in charge of vehicle registration.
The owner of a motor vehicle not subject to annual registration obligation shall conclude a contract on motor third party liability insurance at the time of obtaining the license to use such vehicle, and shall renew the insurance contract during the time the vehicle is used in transport.
Persons not entitled to Damages
Article 21
The following persons shall not be entitled to damages pursuant to motor third party liability insurance:
1) Owner of a motor vehicle that has caused damage to him, in case of physical damage to property;
2) Driver of a motor vehicle that has caused him damage;
3) Person who voluntarily entered a motor vehicle which caused damage to that person, being aware that the vehicle was illegally seized;
4) Person who suffered injury:
(1) Due to use of motor vehicle during officially approved car, motorcycle, and kart racing or parts of such sporting events held on closed racing tracks, whose aim is to achieve maximum speed, as well as during the tests (trainings) for such racing,
(2) Due to the effect of nuclear energy during transport of nuclear material, i.e. due the effect of dangerous cargo being transported,
(3) Due to military operations, military maneuvers, riots or terrorist acts, provided that there is a cause-and-effect relationship between such actions and the injury incurred.
Amount of the Sum Insured
Article 22
The minimum amount of the sum insured for which a motor third party liability insurance contract may be concluded, shall be determined by the Government at the proposal of the National Bank of Serbia.
The amount referred to in paragraph 1 of this Article may not be lower than:
1) For damage due to personal injury, resulting from a single loss event, regardless of the number of injured parties |
1,000,000 EUR; |
2) For property loss, resulting from a single loss event, regardless of the number of injured parties |
200,000 EUR. |
Other minimum amounts of the sum insured for which insurance contract may be concluded, defined by the criteria under Article 26 of this Act for monetary compensation for personal injury shall be determined by the Government of the Republic of Serbia, at the proposal of the National Bank of Serbia.
If there is more than one injured party and the total damages exceed the amount under paragraph 1 of this Article, the rights of the injured parties against the insurance company shall be reduced proportionally up to the amount specified in that paragraph.
The decision referred to in paragraph 1 of this Article shall be published in the "Official Herald of the Republic of Serbia".
Notification on Traffic Accident
Article 23
The owner of a motor vehicle, i.e. a person involved in a traffic accident, shall notify the liable insurance company about the traffic accident within 15 days from the day when the accident occurred.
Compensation Claim and the Right to file a Lawsuit
Article 24
A claim for damages based on motor third party liability insurance may be filed by the injured party directly to the insurance company.
The injured party may file the claim for damages to the insurance company with which such party concluded the contract for motor third party liability insurance, if this possibility is provided for by that contract, and if this is in line with the business policy documents of the insurance company.
If the insurance company fails to submit an explained offer for damages, i.e. the notification under Article 25, paragraph 5 of this Act, within 90 days from the day of the receipt of the claim for damages, i.e. the insurance company fails to pay the small claim within the time limit under Article 27 of this Act, the injured party may file a lawsuit before the court and notify the National Bank of Serbia thereof.
The lawsuit referred to in paragraph 3 of this Article filed prior to expiration of the time limit under paragraph 3 of this Article shall be considered premature.
The insurance company shall record the claim under paragraph 1 of this Article in a special ledger of claims on the day when the claim is received, in order of reception.
In case of damages according to the claim under paragraph 2 of this Article, the insurance company that paid damages shall be entitled to recourse from the insurance company whose policyholder is found to be liable for the damages.
Procedure and Time Limits for deciding on Compensation Claim
Article 25
Within 14 days from the receipt of the compensation claim, the insurance company shall determine the liability and the amount of such claim, and shall make an explained offer of compensation to the claimant and settle the claim.
In case an incomplete claim is submitted, the insurance company shall address the claimant in writing, within 8 days after the day of receipt of such claim, requesting the documentation to be completed.
Notwithstanding paragraph 1 of this Article, if within 14 days from the day of receipt of the claim it is not possible to establish the liability and the amount of such claim, the insurance company shall establish them within 45 days from the day of receipt of the claim in case of damage to property, and within 90 days from the day of receipt of the claim in case of personal injury, and make an explained offer of compensation to the claimant and settle the claim within the next 14 days.
In case where the offered amount of compensation under paragraphs 1 and 3 of this Article is lower than the amount of claim made by the injured party, the insurance company shall make an offer to the injured party and make the payment of the undisputed portion of its obligation as an advance payment, within the time limits stipulated in these paragraphs. The acceptance of the undisputed amount of compensation claim shall not affect the right to claim the disputed amount of compensation.
In the event where the insurance company estimates that there are no grounds for compensation, it shall inform the claimant in writing thereof, along with an appropriate explanation, within 8 days from the decision that no grounds exist for compensation, and according to time limits for deciding on the submitted compensation claim, as prescribed by the provisions of paragraphs 1 and 3 of this Article.
Compensation in Case of Personal Injury
Article 26**
In case of personal injury, the insurance company shall determine the monetary amount of compensation by applying the prescribed criteria for such compensation.
Compensation of Small Claims
Article 27
The claims for compensation less than EUR 1,000 in RSD equivalent, with associated evidence which establishes the liability of the insurance company, shall be deemed as small claims.
The insurance company shall pay the damages referred to in paragraph 1 of this Article within 8 days from receipt of the compensation claim.
The insurance company shall pay the damages within the time limit under paragraph 2 of this Article also when in the claim assessment procedure it establishes that the damages equal up to EUR 1,000 in RSD equivalent, even when the claim is not classified as the claim under paragraph 1 of this Article.
Objection and Subrogation by the Insurance Company
Article 28
When an injured party submits a compensation claim to the insurance company, the company may not respond to the claim with objections which it could make on the basis of the act or insurance contract towards the policyholder due to non-observance of the act or contract.
The insurance company, which has compensated the injured party, shall have right of subrogation against the person liable for injury, up to the amount paid for damages, interest on such compensation, and the costs of proceedings, if the obligation of the insurance company has not taken effect according to the terms and conditions of the contract on motor third party liability insurance.
Damages in the Event of Forfeiture of Insurance Rights
Article 29
Insured person shall forfeit their insurance rights in the following instances:
1) If the driver did not use the motor vehicle for its intended purpose;
2) If the driver did not have a driver's license for the appropriate vehicle category, except during the driving lessons, where a driving candidate was operating the vehicle observing the regulations related to such lessons;
3) If the driver's had his license seized or he was removed from traffic, or a protective measure was implemented forbidding the driver to operate the motor vehicle, i.e. a protective measure forbidding the use of a foreign driver's license in the territory of the Republic of Serbia;
4) If the driver operated the motor vehicle under the influence of alcohol above the prescribed limit, narcotics i.e. illegal medicines or other psychoactive substances;
5) If the driver caused the damage intentionally;
6) If the damage occurred because the motor vehicle was technically defective and the driver was aware of this circumstance;
7) If after the traffic accident the driver left the place of the accident without presenting personal and insurance data.
The forfeiture of insurance rights on the basis of paragraph 1 of this Article has no influence on the right of the injured party to damages.
The insurance company which has paid damages to the injured party referred to in paragraph 2 hereof has the right of subrogation against the person liable for damage for the entire amount of damages paid, interest paid and costs of proceedings.
Damages Caused by Unauthorized Person
Article 30
The motor third party liability insurance shall also include, pursuant to the provisions of this Act, damages caused by unauthorized person who used, i.e. drove the motor vehicle.
The insurance company, which paid out compensation to the injured party, as provided in paragraph 1 of this Article, shall have the right of subrogation against the person liable damage for the entire amount of compensation paid for damages, interest paid and costs of proceedings.
European Accident Report
Article 31
In case of a traffic accident, the participants involved shall complete, sign and exchange European Accident Report, in compliance with the act governing the safety of traffic on roads. A correctly completed European Accident Report may be used by the injured party and the policyholder as a claim for compensation on the basis of motor third party liability insurance.
The insurance company shall give the European Accident Report to the policyholder along with the motor third party liability insurance policy.
While using a motor vehicle in traffic, a driver shall carry the European Accident Report and shall present it at the request of an authorized official.
Change of Owner of a Motor Vehicle
Article 32
If during the validity period of the motor third party liability insurance contract, the owner of a motor vehicle is changed, the rights and obligations pursuant to that contract shall be transferred to the new owner and shall last until the expiry of the current insurance period.
Territorial Validity of Motor Third Party Liability Insurance
Article 33
The motor third party liability insurance shall cover the damages incurred in the territory of EU member states and the territory of member states of the International Motor Insurance Card System, or states whose national insurance bureau is signatory to the Multilateral Agreement, without payment of additional insurance premium.
Compensation for Damage Caused Abroad
Article 34
The liable insurance company shall pay the damages incurred due to the use of motor vehicle in the territory of EU member states and the territory of member states of the International Motor Insurance Card System, or the states whose national insurance bureau is a signatory to the Multilateral Agreement, up to the amount prescribed by the regulations on motor third party liability insurance in the state where the damage occurred. If the minimum sum insured in that state is lower than the amount of the sum insured under Article 22 of this Act, the damage shall be compensated up to the amount from that Article.
If the liable insurance company referred to in paragraph 1 of this Article fails to pay the damages, the damages shall be paid by the Association.
Pursuant to signed international agreements, the Guarantee Fund shall be liable for damages incurred by a driver of an uninsured motor vehicle regularly based in the territory of the Republic of Serbia, in the territory of EU member states, or the states whose national insurance bureau is a signatory to the Multilateral Agreement, or the state where the registration plate replaces a valid international legal instrument on motor third party liability insurance.
Recourse Claims of Legal Persons in the Field of Social Insurance
Article 35
Legal persons engaging in the field of health, disability and retirement insurance may, on account of payments made to their beneficiaries, make recourse claims from insurance company on the basis of motor third party liability insurance, in the amount of actual damage, up to the highest liability amount of the insurance company, in cases when such claims may be filed against the person liable for damage, pursuant to applicable regulations.
The costs of medical treatment and other unavoidable costs resulted from medical treatment shall be considered as actual damage under paragraph 1 of this Article, as well as the proportionate amount of pension of the injured person i.e. family member of the injured person, which is established as a capitalized amount according to the remaining insurance service period and the years of life of persons needed for acquiring the right to retirement pension.
An insurance company shall pay 5% of gross insurance premium of motor third party liability insurance to the account of a legal person which provides and conducts compulsory health insurance (hereinafter referred to as the "Republic Fund") in compliance with the act regulating compulsory health insurance.
The percentage referred to in paragraph 3 of this Article calculated to the amount of gross insurance premium of motor third party liability insurance in the previous month shall be paid by the insurance company by the 20th of each month.
Upon the payment of the amount under in paragraph 3 of this Article, all actual damages towards the Republic Fund under paragraph 2 of this Article shall be deemed settled.
2. Compensation for Damage Caused by using a Motor Vehicle Registered Abroad
International Certificate of Motor Third Party Liability Insurance
Article 36
A driver entering the territory of the Republic of Serbia in a motor vehicle regularly based in the territory of a state whose national insurance bureau is not a signatory to the Multilateral Agreement, shall have a valid international certificate of motor third party liability insurance, which is in force in the territory of the EU, or some other type of proof of such insurance.
The international certificate under paragraph 1 of this Article shall be substituted by a registration plate for a motor vehicle regularly based in the territory of the state whose national insurance bureau is a signatory to the Multilateral Agreement.
In case when a motor vehicle was sent from the territory of an EU member state to the territory of the Republic of Serbia, the risk shall be considered to be located in the Republic of Serbia for the period of 30 days from the direct handover of the vehicle to the buyer, and when the vehicle is not registered in Serbia.
Validity of the International Certificate of Motor Third Party Liability Insurance
Article 37
A certificate and evidence whose validity is acknowledged by the Association according to the signed international agreements shall be considered as the international certificate and proof referred to in Article 36, paragraph 1 of this Act.
The Association shall guarantee any obligations ensuing from the certificate referred to in paragraph 1 of this Article, up to the amount specified in Article 22 of this Act.
Border Insurance
Article 38
A driver of a motor vehicle regularly based in the territory of a state whose national insurance bureau is not a signatory to the Multilateral Agreement, who does not have a valid international certificate or proof of motor third party liability insurance under Article 36 of this Act, shall conclude a contract on motor third party liability insurance (border insurance), which is valid in the territory of the EU member states, with a validity period equal to the duration of the driver's stay in territory the EU member state, or for a minimum of 15 days.
Fulfillment of obligations of the driver of motor vehicles with foreign registration plates referred to in paragraph 1 of this Article and Article 36 of this Act shall be monitored by the authority responsible for internal affairs. When motor vehicles, usually 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 member state, the authority responsible for internal affairs shall carry out the supervision by means of a non-systematic check that is not exclusively directed at the verification of motor third party liability insurance.
Compensation for Damage caused by the use of Motor Vehicle with Foreign Registration Plates
Article 39
A person who suffered damage incurred by a motor vehicle carrying foreign registration plates in the territory of the Republic of Serbia, for which there is a valid international certificate or other proof of motor third party liability insurance, shall submit a claim for compensation to the insurance company which has obtained the authorization of the Association to conduct activities arising from the international agreement on the liability insurance of the owners of motor vehicles for damages resulting from the use of motor vehicles, in the country or abroad.
If the minimum sum insured in such country exceeds the sum insured under Article 22 of this Act, the damage shall be compensated up to the contracted insurance amount, i.e. according to the insurance policy of the motor vehicle with foreign registration plates.
If the insurance company, to which the claim for compensation under paragraph 1 hereof has been submitted, fails to pay compensation within 60 days from the receipt of such claim, the injured party shall have the right to submit the compensation claim to the Association.
If the Association fails to pay damages within 30 days from the receipt of the compensation claim, the injured party may file a lawsuit against the Association or the insurance company referred to in paragraph 1 of this Article, and inform the National Bank of Serbia thereof.
Compensation based on Border Insurance
Article 40
Any damage caused by the use of a motor vehicle with foreign registration, whose owner is insured against motor third party liability insurance with a domestic insurance company, shall be compensated by that insurance company, according to the provisions of this Act applicable to the insurance contracted by the owner of a locally registered motor vehicle.
Compensation for Damage caused by Uninsured Motor Vehicle with Foreign Registration
Article 41
Any damage caused by the use of a motor vehicle with foreign registration, whose owner was not insured against motor third party liability, shall be compensated by the Guarantee Fund.
3. Compulsory Insurance Premiums - Premium System
Determining and Prescribing Compulsory Insurance Premiums
Article 42
The insurance company shall calculate the premium for each rate group within the premium system for compulsory insurance based on relevant data for each rate group.
Data for calculation of premium for each rate group within the premium system shall comprise of data on concluded insurance contracts, reported, settled, paid and reserved damages, costs related to the settlement and payment of damages, as well as other information required for risk assessment and premium calculation.
The data referred to in paragraph 2 of this Article shall be submitted by the insurance company to the Association within the time limit prescribed by that association.
The Association shall process the data referred to in paragraph 2 of this Article and publish them on its website at least once a year.
Article 43
When concluding the contracts on motor third party liability insurance, an insurance company shall include and apply the bonus-malus system in its premium system, i.e. premium rates.
The basic bonus-malus system criteria, the data required for its application and the maximum bonus shall be determined by the National Bank of Serbia.
An insurance company may also specify additional criteria that are not contrary to the criteria referred to in paragraph 2 of this Article.
4. Selling Insurance Policies and Insurance Company Operations
Article 44
In addition to the persons prescribed by the Insurance Act, the policies of motor third party liability insurance may also be sold by legal persons authorized for technical inspection of motor vehicles pursuant to regulations on traffic safety (hereinafter referred to as "motor vehicle inspection station").
The sale of the policies of motor third party liability insurance by the motor vehicle inspection stations shall not be considered as agency operations in insurance in terms of the Insurance Act.
The policies of motor third party liability insurance may only be sold through motor vehicle inspection stations by the station personnel holding an authorization to carry out agency activities in insurance issued in compliance with the Insurance Act.
Excluding the insurance policy sale contracts, an insurance company and motor vehicle inspection station, and their related parties, may not conclude contracts on lease of premises, or carry out other legal operations through which the motor vehicle inspection station would earn other income and obtain benefits from the funds of the insurance company or its related party.
The vehicle inspection station may not charge the insurance premium.
Article 45
The expense loading in conducting the activities of motor third party liability insurance may amount up to 23% of the gross premium of such insurance.
Administration expenses for motor third party liability insurance, including the acquisition costs, may not be higher than the realized expense loading under paragraph 1 of this Article, whereas the commission for the sale of policies for motor third party liability insurance may not exceed 5% of the gross premium of that insurance.
The insurance company shall compile a comparative summary of income and expenses in its financial statements, and determine and declare profit, i.e. surplus and loss, i.e. deficit in performing the activities of motor third party liability insurance.
The insurance company shall set aside 1.2% of gross premium for motor third party liability insurance as a part of prevention, and shall pay that amount on quarterly basis into a special account intended for deployment, operation and improvement of the system for monitoring, control and regulation of traffic - video surveillance of roads.
The allocations referred to in paragraph 4 of this Article shall be made by the insurance companies in the period of five years.
The funds under paragraph 4 hereof shall be used in accordance with the act governing road traffic safety.
5. Special Provisions on Implementing Motor Third Party Liability Insurance
1) Authorized Claims Representative
Article 46
An authorized representative for deciding on settlement of claims on the basis of motor third party liability insurance (hereinafter referred to as a "claims representative") shall be a person who, on behalf of and for the account of the liable insurance company, gathers information, takes measures necessary to make decisions on compensation claims, and in the country of injured person’s domicile makes the appropriate payments for damages in the case of claims resulting from a traffic accident in an EU member state, which is not the country of domicile of the injured person, i.e. in third countries, whose national insurance bureau is a member of the International Insurance Card System, in the event that the damage is incurred by the use of motor vehicles which are insured and are usually based in one of the EU member states other than the domicile country of the injured person.
The claims representative shall have all necessary powers to represent the insurance company in relation with the injured person and government bodies, and shall have its company seat, i.e. domicile in that country.
The claims representative shall be qualified for processing damage claims in the official language of the country for which he/she is appointed.
The claims representative may work for one or more insurance companies.
Notwithstanding paragraph 1 of this Article, the injured person may claim the compensation directly from the person responsible for the accident or from the liable insurance company.
Legal persons under Article 35 of this Act and other legal persons, to whom, pursuant to this Act, the right to compensation of the injured person has been ceded, shall not have the right to claim compensation from the claims representative.
Article 47
An insurance company engaging in motor third party liability insurance in the territory of the Republic of Serbia shall appoint claims representatives in all other EU member states.
The insurance company, through the Information Centre under Article 50 of this Act, shall inform the information centers of other EU Member States of the name and domicile, i.e. registered seat of the claim representative under paragraph 1 of this Article.
Article 48
The appointment of claims representatives in the EU member states shall not affect the substantive law to be applied in the processing of compensation claims nor shall it change the court jurisdiction.
Article 49
Within three months from submission of the compensation claim, the liable insurance company or its claims representative shall submit to the injured party the following:
1) Explained offer for damages, if the grounds and the amount of damages are indisputable,
2) Explained reply - in case the grounds and the amount of damages are disputable.
If the insurance company or its claims representative, within the time limit referred to in paragraph 1 of this Article, fail to deliver to the injured party an explained offer for damages, i.e. an explained reply, the injured party may file a lawsuit against the liable insurance company in such party’s domicile.
The National Bank of Serbia shall notify the competent supervisory body of the EU member state in the event that the liable insurance company or its claims representative acts contrary to the obligation referred to in paragraph 1 of this Article.
2) Information Center
Article 50
The Information Center shall be established within the Association for the purpose of ensuring the efficient settlement of compensation claims resulted from the use of motor vehicles.
The Information Centre shall:
1) Collect data relevant for the settlement of compensation claims and keep a register of such data;
2) Enable access to the data referred to in item 1 of this paragraph,
3) Offer assistance to injured parties when seeking data from the register referred to in item 1) of this paragraph, and data from the registers of information centers of other EU member states.
The register under paragraph 2, item 1) of this Article shall include the data on:
1) Registration labels, kinds, brands and the types and serial numbers of motor chassis for vehicles registered in the Republic of Serbia;
2) Reference numbers of motor third party liability insurance policies for motor vehicles under item 1) of this paragraph;
3) Duration of the insurance coverage under the contract on motor third party liability insurance;
4) Business name and registered seat the insurance company providing insurance coverage pursuant to the insurance contract under item 3) of this paragraph;
5) Name and surname, date of birth, domicile, i.e. business name and registered seat of the policyholder;
6) Name and domicile, i.e. registered seat of claims representatives appointed by insurance companies from the Republic of Serbia in other EU member states;
7) List of the owners of motor vehicles in the Republic of Serbia exempt from the obligation of motor third party liability insurance.
The data referred to in paragraph 3 of this Article shall be gathered from insurance companies and from the records of motor vehicles registered in the Republic of Serbia.
At the request of the injured party, the Association shall also request data referred to in paragraph 3 of this Article from the registers of information centers of other EU member states.
The insurance company and the authority competent for keeping records of motor vehicles registered in the Republic of Serbia shall regularly deliver the data under paragraph 3 of this Article to the Association.
The Information Centre shall keep the data referred to in paragraph 3, items 1) to 5) of this Article for a minimum of ten years following the day of vehicle deregistration or expiration of the insurance policy.
In providing assistance with gathering the data referred to in paragraph 2, item 3) of this Article, the Information Centre shall cooperate with the information centers of other EU Member States.
Article 51
The Information Centre shall enable, without delay, the access of injured parties to the following data from its register, or the register of an information center of another EU member state, within ten years from the day of the traffic accident:
1) Business name and registered seat of the liable insurance company;
2) Reference number of the insurance policy issued by the company from item 1) of this paragraph;
3) Name and surname, i.e. business name and domicile, i.e. registered seat of the claims representative in the Republic of Serbia, appointed by the liable insurance company.
At the request of the injured party, the Information Centre shall gather data on the name and surname, i.e. business name and domicile, i.e. registered seat of the owner, the usual driver or registered user of the motor vehicle, if the injured party has declared a legal interest for gathering of such information. The Information Centre shall gather the data primarily from insurance companies and from the authority competent for motor vehicle registration.
The Information Centre shall gather for the injured party the data on the name and surname, i.e. business name and domicile, i.e. registered seat of the person liable for the damage resulted from the use of a motor vehicle exempt from the obligation of motor third party liability insurance.
Article 52
The Information Centre shall enable all injured parties and other participants in a traffic accident the access to and use of the data in compliance with this Act.
Data processing and storage, providing access to and use of data, which are by their nature personal data, shall be carried out according to the provisions of Article 9, paragraph 3 of this Act.
3) Damages Bureau
Article 53
The Damages Bureau shall be organized within the Association.
An injured party having domicile in the Republic of Serbia may file a claim for damages to the Damages Bureau if the traffic accident occurred in another EU member state, i.e. in a third country whose national insurance bureau is a member of the International Insurance Card System, and the traffic accident has been caused by a motor vehicle that has been insured, i.e. is regularly based in another EU member state.
The Damages Bureau shall only be liable in exceptional cases where the liable insurance company, i.e. its claims representative have not met their obligations as provided by this Act.
The injured party under paragraph 2 of this Article may submit a claim for damages to the Damages Bureau if:
1) The liable insurance company or its claims representative have not acted in accordance with Article 49 of this Act within three months from the day of submission of the damages claim to that insurance company or its claims representative;
2) The liable insurance company in the Republic of Serbia has not appointed a claims representative, except in the case that the injured party has already submitted the damages claim directly to the liable insurance company, and if that party, within three months after submitting the claim, has received an explained response from the liable insurance company;
3) Within two months from the day of submission of the damages claim, it was not possible to identify the motor vehicle, i.e. liable insurance company.
Article 54
The Damages Bureau shall decide on a claim for damages within two months from the day of submission of the damages claim. The Damages Bureau shall discontinue the proceedings if the insurance company or its claims representative fulfills their obligations as provided in Article 49 of this Act.
The Damages Bureau shall immediately inform the following parties of the receipt of the damages claim and of the fact that it shall, within two months from the receipt of the damages claim, act in an appropriate way:
(1) The liable insurance company or its claims representative;
(2) The authority in charge of settlement of damages claims in the EU member state where the seat of the insurance company, with which the contract on motor third party liability insurance has been concluded, is registered;
(3) The person who caused the traffic accident, if such person is known.
Article 55
If the injured party referred to in Article 53, paragraph 2 of this Act may not be file with the Damages Bureau a claim for damages if such party initiated legal proceedings directly against the person who caused the traffic accident or against the liable insurance company.
Legal persons to which, based on a law, the rights of the injured parties have been transferred with regards to claim for damages against the person who has caused the accident, or against the liable insurance company, and legal persons referred to in Article 35 of this Law, shall have no right to claim damages from the Damages Bureau.
If the Damages Bureau has paid damages to the injured party referred to in Article 53, paragraph 2 of this Act, it shall be entitled to reimbursement of the amount paid for damages and expenses from the authority in charge of damages in the EU member state whose insurance company, pursuant to the concluded international agreements, concluded the contract on motor third party liability insurance.
The Damages Bureau shall, according to concluded international agreements, reimburse the amount paid for damages to the authority in charge of damages in the EU member state, provided that this concerns the obligation pursuant to a contract on motor third party liability insurance of an insurance company registered in the territory of the Republic of Serbia.
Article 56
If it is not possible to identify the motor vehicle which caused the damage, or if within a two-month period from the date of filing the compensation claim for damages it is not possible to determine the liable insurance company, the injured party referred to in Article 53, paragraph 2 of this Act may file its compensation claim with the Damages Bureau.
The Damages Bureau, which has paid damages to the injured party, shall be entitled to reimbursement of the amount paid for damages and expenses, in accordance with signed international agreements, namely:
1) In case that it was not possible to determine the liable insurance company - from the Guarantee Fund in the EU member state where the motor vehicle is regularly situated;
2) In case that it was not possible to identify the motor vehicle - from the Guarantee Fund in the EU member state where the traffic accident occurred;
3) In case of a motor vehicle from third countries - from the Guarantee fund in EU member state where the traffic accident occurred.
Article 57
The funds necessary for the functioning of the Damages Bureau shall be formed from the contributions of insurance companies that do business in motor third party liability insurance. The Association shall determine the amount of necessary funds and shall inform insurance companies thereof. The contribution of an individual insurance company shall be proportional to its share in the number of signed contracts on motor third party liability insurance in the Republic of Serbia in the previous year.
Insurance companies shall pay the contributions referred to in paragraph 1 of this Article within 15 days after receipt of the Association’s notification.
Funds of the Damages Bureau shall be deposited in a separate account of the Association.
4) Loss Event Register
Article 58
The Loss Event Register shall be establish within the Association, in order to provide data on loss events, i.e. compensation claims of injured parties on the basis of motor third party liability insurance, and it shall include the data for the period of last 5 years during which the policyholder has had a concluded motor third party liability insurance contract.
For the purpose of the register under paragraph 1 of this Article, the insurance company shall submit to the Association data on loss events or compensation claims, based on concluded contracts on motor third party liability insurance for individual vehicle and the policyholder.
Article 59
The insurance company shall issue to the policyholder a certificate of filed compensation claims based on motor third party liability insurance of the policyholder within 15 days of filing the claim, and the certificate shall be related to the period referred to in Article 58, paragraph 1 of this Act.
5) Persons from the European Union or another Foreign Country Engaging in Motor Third Party Liability Insurance
Article 60
An insurance company from an EU member state, i.e. a foreign country, and a branch of that insurance company, which under the Insurance Act may engage in business of compulsory insurance in the territory of the Republic of Serbia, must be a member of the Association and shall be subject to the provisions specified in Article 75 of this Act.
The insurance company i.e. the branch under paragraph 1 of this Article shall appoint a representative with a registered seat or domicile in the Republic of Serbia and shall forward his name, i.e. business name and domicile, i.e. seat to the National Bank of Serbia and the Association.
On behalf and for the account of the insurance company, i.e. the branch under paragraph 1 of this Article, the appointed representative referred to in paragraph 2 of this Article shall process compensation claims and pay damages to injured parties, represent the company before courts and competent authorities of the Republic of Serbia.
The appointed representative under paragraph 2 of this Article may also conduct the activities of the claims representative under Article 46 of this Act.
The appointed representative referred to in paragraph 2 of this Article shall carry out the activities under paragraphs 3 and 4 of this Article in the Serbian language.
IV INSURANCE FOR AIRCRAFT OWNERS AGAINST LIABILITY FOR DAMAGE CAUSED TO THIRD PARTIES AND PASSENGERS
Insurance Obligation of Aircraft Owners against Liability for Damage Caused to Third Parties and Passengers
Article 61
An owner of an aircraft shall conclude a contract on insurance against liability for damage caused to third parties and passengers by the use of aircraft.
The third party referred to in paragraph 1 of this Article shall mean any person, other than passengers and flight and cabin crew of the aircraft on duty during the flight.
The passenger referred to in paragraph 1 of this Article shall mean any person being transported by the aircraft, with consent of the aircraft owner, other than flight and cabin crew of the aircraft on duty during the flight.
The insurance contract under paragraph 1 of this Article shall also cover the damage to cargo and luggage.
The insurance contract referred to in paragraph 1 of this Article does not have to cover damage to cargo and luggage if the aircraft is not used for commercial purposes.
The insurance contract under paragraph 1 of this Article shall also cover damages due to risks of war and terrorism, aircraft hijacking, sabotage, unlawful seizure of the aircraft and civil unrest.
Notwithstanding paragraph 6 of this Article, for aircrafts whose MTOM equals up to 500 kg, and which are not used for commercial purposes, i.e. which are used for pilot training, sport or amateur flying, within the airspace of the Republic of Serbia, the insurance contract referred to in paragraph 1 of this Article does not have to cover damages due to risks of war and terrorism.
The owner of a foreign aircraft entering the airspace of the Republic of Serbia must be insured against liability for damages under paragraph 1 of this Article, unless he has other kind of security for damages or unless an international agreement provides otherwise.
Notwithstanding paragraph 8 of this Article, the owner of an aircraft which is not registered in the Republic of Serbia, i.e. an EU member state, i.e. whose aircraft is registered outside the territory of the EU, and whose flights do not include landing at or taking off from the territory of the EU, i.e. the Republic of Serbia, but only a flight in the airspace of the Republic of Serbia, shall not be obligated to have covered by the insurance contract referred to paragraph 1 of this Article the injury to passengers, or loss of cargo and luggage.
The registration of an aircraft and the extension of the registration may be done after submitting the evidence of the concluded insurance contract referred to in paragraph 1 of this Article to the authority in charge of registration.
The owner of an aircraft not subject to compulsory annual registration shall conclude the insurance contract referred to in paragraph 1 of this Article when being granted with the appropriate usage license.
Article 62
The minimum amount of sum insured, per loss event, specified by the insurance contract referred to in Article 61, paragraph 1 of this Act shall be determined by the Government, at the proposal of the National Bank of Serbia.
The minimum sum insured under paragraph 1 of this Article may not be lower than:
1) |
For injury or loss caused to third parties: |
|
|
|
(1) For motor propelled gliders whose MTOM is above 20 kg |
10,000 |
SDR |
|
(2) For free flying balloons with crew |
20,000 |
SDR |
|
(3) For aircraft whose MTOM is |
|
|
|
- Less than 500 kg |
750,000 |
SDR |
|
- Less than 1,000 kg |
1,500,000 |
SDR |
|
- Less than 2,700 kg |
3,000,000 |
SDR |
|
- Less than 6,000 kg |
7,000,000 |
SDR |
|
- Less than 12,000 kg |
18,000,000 |
SDR |
|
- Less than 25,000 kg |
80,000,000 |
SDR |
|
- Less than 50,000 kg |
150,000,000 |
SDR |
|
- Less than 200,000 kg |
300,000,000 |
SDR |
|
- Less than 500,000 kg |
500,000,000 |
SDR |
|
- 500,000 kg and more |
700,000,000 |
SDR |
2) |
For individual passenger |
250,000 |
SDR |
3) |
For personal belongings of passengers in the aircraft cabin |
1,000 |
SDR |
4) |
For cargo and registered luggage, per kg |
17 |
SDR |
Notwithstanding paragraph 2, item 2) of this Article, the minimum sum insured, per loss event, prescribed by the insurance contract referred to in Article 61, paragraph 1 of this Act for aircrafts whose MTOM is 2,700 kg or less, which are not used for commercial purposes, amounts to SDR 100,000 per individual passenger.
The decision from paragraph 1 of this Article shall be published in the "Official Herald of the Republic of Serbia".
Application of Provisions on Damages
Article 63
The provisions of this Act concerning the compensation for damage incurred to third parties by the use of a motor vehicle, as well as the provisions of the laws governing contracts and torts and basics of ownership rights in air traffic, shall apply, mutatis mutandis, to the issues of liability of aircraft owners for injury or loss caused to third parties and passengers, which are not regulated by the provisions of this section
V INSURANCE FOR BOAT OWNERS AGAINST LIABILITY FOR DAMAGE CAUSED TO THIRD PARTIES
Insurance Obligation of Boat Owners against Liability for Damage Caused to Third Parties
Article 64
An owner of a boat with engine power exceeding 15 kW which is entered in appropriate register according to regulations on registration of boats, shall conclude an insurance contract against liability for damage caused by using the boat to third parties in the form of death, bodily harm or impairment of health.
The damage under paragraph 1 of this Article shall also include any damage caused to third parties due to falling out from the boat or by throwing objects from a boat.
A person transported in a boat shall not be considered as the third party referred to in paragraph 1 of this Article.
The owner of a foreign boat sailing in the domestic territorial waters must be insured against liability for damage referred to in paragraph 1 of this Article, unless he possesses another security for the payment of damages, or unless otherwise provided by an international agreement.
The registration of a boat and the extension of its registration may only be done after submitting the evidence of the concluded insurance contract referred to in paragraph 1 of this Article to the authority in charge of registration.
Article 65
The minimum amount of the sum insured per loss event for which the insurance referred to in Article 64, paragraph 1 may be concluded, shall be determined by the Government at the proposal of the National Bank of Serbia.
The minimum sum insured under paragraph 1 of this Article may not be lower than EUR 200,000.
The decision under paragraph 1 of this Article shall be published in the "Official Herald of the Republic of Serbia".
Application of Provisions on Damages
Article 66
The provisions of this Act concerning the compensation for damage incurred to third parties by the use of a motor vehicle, as well as the provisions of the laws governing contracts and torts and the ownership rights in inland and maritime navigation, shall be applied, mutatis mutandis, to the issues of the liability of a boat owner for damage caused to third parties which have been not regulated by the provisions of this Section.
Article 67
When during the supervision the National Bank of Serbia establishes that the insurance company has breached the obligations referred to in Articles 6, 9, 24 to 27, 39 and 40, 42 to 45 and 70, 106 and 108 of this Act, it may take the following measures, regardless of the measures of supervision prescribed by the Insurance Act, namely, it may:
1) Publicly disclose information on the company's failure to fulfill obligations or failure to fulfill the obligations in a timely manner, or information about the company’s operation contrary to regulations, at the company’s expense;
2) Withdraw consent given pursuant to the Insurance Act to the general manager or another responsible officer of the company;
3) Temporarily prohibit the company to carry out activities of compulsory insurance;
4) Revoke the company’s license to carry out activities of compulsory insurance;
5) Impose a fine on the company, as well as on the president i.e. a member of a company’s body.
Article 68
The fine under Article 67, item 5) of this Act, imposed on the insurance company may not be less than 1% or more than 5% of the prescribed monetary portion of core capital of the insurance company for carrying out activities in the area of compulsory insurance, while the fine to the president, or a member of the company body, may not be less than one salary, or more than the sum of 12 salaries received by these persons in the period before the date of making the decision on imposing the fine.
The fines under paragraph 1 of this Article shall be paid into the budget of the Republic of Serbia.
The decision on imposing the fine, upon delivery to the person referred to in paragraph 1 of this Article, shall represent an enforceable legal instrument.
Criteria for Imposing Measures
Article 69
The National Bank of Serbia makes the decision on the measures under Article 67 of this Act based on the assessment of:
1) The severity, i.e. the consequences of failure of the insurance company to carry out or timely carry out obligations defined by this Act, and the extent of these consequences, as well as the company’s operations contrary to regulations;
2) Extent to which the stability of the insurance market, i.e. development of compulsory insurance has been endangered;
3) Extent of previously established violations and irregularities in the operations of the insurance company;
4) Demonstrated willingness and ability of the insurance company’s bodies to remove the irregularities established in the company’s operations.
VII PUBLIC AUTHORITY DELEGATED TO ASSOCIATION OF SERBIAN INSURERS
Article 70
The Association, whose members are all insurance companies carrying out operations in the area of compulsory vehicle insurance, shall exercise the following public authorities:
1) Conduct the activities of a national insurance bureau ensuing from international agreement on insurance of owners of motor vehicles against third party liability for damage caused by usage of motor vehicles in the country or abroad;
2) Prescribe and print the forms and controls the use of international insurance cards issued to the owners of motor vehicles against liability for damage incurred by the use of motor vehicles in the country or abroad, as well as to process the compensation claims with regard to such insurance coverage (green card);
3) Maintain the Information Centre, Damages Bureau and the Loss Events Register;
4) Collect, process, keep, deliver, i.e. publish on its website data of significance for performing the activities entrusted by this Act, including data on claims filed under each insurance policy for the implementation of the bonus-malus system, which are required to be submitted to the Association by insurance companies;
5) Represent insurance companies before the state and other competent authorities in the country and before international insurance organizations;
6) Establish the amount of contributions to be paid by insurance companies for the provision of funds for conducting the activities of the Association assigned to it by this Act;
7) Adopt Code of Conduct in compulsory insurance operations;
8) Perform other tasks specified by this Act.
The ministry in charge of finance shall give consent to the amount of the contribution referred to in paragraph 1, item 6) of this Article and the Association informs the National Bank of Serbia thereof.
The Association shall compile the calculation of income and expenses related to the exercise of public authorities and submit it to the ministry in charge of finance.
Upon request, the Association shall deliver data for the implementation of the bonus-malus system to the National Bank of Serbia and to the insurance company.
Article 71
Public authorities exercised by the Association shall be supervised by the ministry in charge of finance.
In case the ministry in charge of finance determines that the public authorities are not exercised pursuant to international agreement and this Act, it shall order the established irregularities to be rectified within a specified period.
Article 72
The Government shall give consent to the provisions of the Association’s Articles of Association relating to the exercise of public authorities, upon previously obtained opinion of the ministry in charge of finance of the Republic of Serbia and the National Bank of Serbia.
The Association shall submit to the Government its annual report on the exercise of public authorities no later than 31 March of the current year for the previous year.
Article 73
The Guarantee Fund shall be established by this Act.
The Guarantee Fund shall have the capacity of a legal person, acquired on the date of its entry into the register.
The registered seat of the Guarantee Fund shall be in Belgrade.
The funds for the establishment and commencement of operations of the Guarantee Fund shall be provided from the budget of the Republic of Serbia.
Article 74
The Guarantee Fund shall be established for the purpose of financial protection of passengers in public transport and injured third parties in cases where the damage has been caused by using uninsured or unidentified means of transport, as well as for damages payable by the insurance company against which bankruptcy proceedings have been initiated, pursuant to this Act.
In performing the activities referred to in paragraph 1 of this Article, the Guarantee Fund shall:
1) Receive, assess and liquidate claims for compensation;
2) Pay the sum assured i.e. damages;
3) Undertake recourse claims in cases anticipated by this Act;
4) Establish reserves.
The Guarantee Fund may outsource the processing of the compensation claims, payment of the sum assured, i.e. damages and undertaking recourse claims, to an insurance company.
Article 75
The funding sources of the Guarantee Fund shall be:
1) Contributions by insurance companies;
2) Budget funds of the Republic of Serbia in the first year of operation;
3) Investment income and other income of the Guarantee Fund;
4) Other sources in accordance with the law.
The resources collected from contributions by insurance companies shall serve as coverage for the obligations referred to in Article 74 of this Act and as coverage for operating expenses of the Guarantee Fund.
Insurance companies shall provide the resources referred to in paragraph 2 of this Article by allocating the funds from the compulsory insurance premium.
The contributions of insurance companies shall be defined in a percentage amount of the gross premium of compulsory insurance realized in the previous month.
The amount of contribution of an insurance company shall be determined by the board of directors of the Guarantee Fund, with the Government’s consent.
Article 76
The resources of the Guarantee Fund shall be used for the payment of the sum assured, i.e. damages to injured parties, namely:
1) Caused by the use of a motor vehicle, aircraft, boat or other means of transport for which compulsory insurance contract has not been signed, in terms of this Act;
2) Caused by the use of an unidentified motor vehicle, aircraft or boat;
3) Caused by the use of a motor vehicle, aircraft, boat or other means of transport for which a compulsory insurance contract has been concluded with the insurance company against which bankruptcy proceedings have been initiated.
The insurance company shall not be liable for the obligations of the Guarantee Fund under paragraph 1 of this Article.
Exclusion of the Right to Recourse
Article 77
Legal persons carrying out activities in the field of health, pension and disability insurance, as well as other legal and natural persons that have, in any manner, directly compensated the injured party for the damage caused by the use of uninsured or unknown means of transport, as well as damage caused by the use of means of transport for which a compulsory insurance contract was concluded with an insurance company against which bankruptcy proceedings have been initiated, may not make recourse claims against the Guarantee Fund.
Administering and Investing the Funds Intended for Paying Damages
Article 78
The Guarantee Fund shall keep its funds for the payment of the sum assured, i.e. damages, in a special deposit account opened with the National Bank of Serbia.
The funds under paragraph 1 of this Article shall be invested by the Guarantee Fund in accordance with mutatis mutandis application of regulations governing the depositing and investing the insurance funds of insurance companies.
The funds referred to in paragraph 1 of this Article may not be subject to enforced collection.
Article 79
The Guarantee Fund shall guarantee for its liabilities with its assets.
Article 80
The Guarantee Fund has Articles of Association and other statutes, in line with the law and Articles of Association.
The Articles of Association shall be adopted by the board of directors of the Guarantee Fund with the Government’s consent.
The Articles of Association shall be submitted to the National Bank of Serbia to give its opinion on this document before being submitting to the Government for consent. The board of directors of the Guarantee Fund shall consider the remarks of the National Bank of Serbia. When submitting the Articles of Association to the Government for consent, the board of directors of the Guarantee Fund shall inform the Government about the remarks it has not accepted and the reasons why these remarks were not accepted.
The Guarantee Fund’s Articles of Association shall regulate the organization and operation of the Guarantee Fund.
The regulations governing salaries, benefits and other income of public servants shall apply mutatis mutandis to salaries, benefits and other income of the employees of the Guarantee Fund.
Article 81
The bodies of the Guarantee Fund shall be the board of directors and the general manager.
Composition and appointment of the board of directors
Article 82
The board of directors shall have five members, including the president.
The president and members of the board of directors shall be appointed and dismissed by the Government, namely:
1) President and one member - at the proposal of the ministry in charge of finance;
2) One member - at the proposal of the National Bank of Serbia;
3) Two members - at the proposal of the association of Serbian insurance companies.
The president and members of the board of directors shall be appointed for the period of four years and may be reappointed.
The president and members of the board of directors shall not be employed by the Guarantee Fund.
The president and members of the board of directors shall receive remuneration for their work in the Guarantee Fund.
Responsibilities of the Board of Directors
Article 83
The board of directors shall:
1) Pass the Articles of Association of the Guarantee Fund and other bylaws;
2) Decide on the amount of contribution by an insurance company under Article 75 of this Act;
3) Adopt the annual operating plan of the Guarantee Fund;
4) Adopt the annual operating report of the Guarantee Fund;
5) Adopt annual account and audit report of the Guarantee Fund;
6) Appoint and dismisses the chartered auditor who audits the annual account of the Guarantee Fund;
7) Adopt its rules of procedure;
8) Perform other activities determined by law and Articles of Association of the Guarantee Fund.
Article 84
The general manager of the Guarantee Fund shall be appointed and dismissed by the board of directors, with the Government’s consent.
The general manager of the Guarantee Fund shall be appointed for a period of four years and may be reappointed.
The general manager of the Guarantee Fund shall represent and act on behalf of the Guarantee Fund, propose the acts and decisions to be passed by the board of directors within its responsibilities, and ensure that the decisions made by the board of directors are implemented.
The general manager of the Guarantee Fund shall also carry out other activities within the responsibilities of the Guarantee Fund, unless these activities fall within the responsibilities of the board of directors pursuant to this Act.
Requirements for Appointment of the President and Members of the Board of Directors and General Manager
Article 85
To be appointed as president and member of the board of directors, i.e. general manager of the Guarantee Fund, a person must:
1) Have citizenship of the Republic of Serbia;
2) Have a university degree;
3) Be a recognized expert in the area of insurance, law, or economy;
4) Not have been in the past three years a member of the board of directors or supervisory board, or a general manager or senior executive of a legal person against which forced liquidation or bankruptcy proceedings were initiated or completed;
5) Not have been unconditionally sentenced to imprisonment for the period longer than six months, nor sentenced for an offence making him unfit for this position.
Article 86
The president and members of the board of directors of the Guarantee Fund, as well as the members of their families, may not own shares, founders’ stakes or debt securities, or act as outsourced collaborators or members of the bodies of insurance companies, audit companies which audit the financial statements of the Guarantee Fund, or other legal persons with whom Guarantee Fund cooperates in performing the activities within its responsibilities.
The general manager of the Guarantee Fund may not be an official in the sense of the act governing the prevention of conflict of interest in conducting public service, or an official of a political organization or trade union, or an outsourced collaborator, or a member of bodies of legal persons referred to in paragraph 1 of this Article.
Surplus i.e. Deficit of Income over Expenses
Article 87
The surplus of income over expenses of the Guarantee Fund shall be transferred to the following year and added into calculation when determining the amount of necessary assets of the Guarantee Fund for the upcoming period.
The surplus of expenses over income of the Guarantee Fund shall be covered by contributions under Article 75 of this Act for the following period, depending on the due and outstanding obligations of the Guarantee Fund.
Article 88
The National Bank of Serbia shall supervise the operation of the Guarantee Fund.
The supervision referred to in paragraph 1 of this Article shall be carried out by mutatis mutandis implementation of regulations which govern the supervision of the operation of insurance companies.
If during the supervision any illegalities are established in the operation of the Guarantee Fund, the National Bank of Serbia shall impose measures to remove them, according to mutatis mutandis application of regulations which specify the measures the National Bank of Serbia may impose against an insurance company.
Operation of the Guarantee Fund shall be subject to audit in accordance with the law.
Article 89
The annual account for the previous year, with the operations report and the chartered auditor's report, shall be delivered by the Guarantee Fund to the National Bank of Serbia and the ministry in charge of finance, no later than 30 April of the current year.
Implementation of the Provisions on the Right to Payment of the Sum Assured, i.e. Damages
Article 90
The provisions of this Act related to the procedure of exercising the right to payment of the sum assured, i.e. right of injured parties to damages, shall also apply, mutatis mutandis, to the Guarantee Fund, unless provided otherwise by the provisions of this section.
Payment of the Sum Assured, i.e. Damages in cases where no Compulsory Insurance Contract was concluded
Article 91
Any damage caused by using a motor vehicle, aircraft, boat or other means of transport in cases where its owner concluded no compulsory insurance contract, but he was supposed to get insured according to the provisions of this Act, shall be compensated in the same amount and under the same terms as if on the date of the loss event the compulsory insurance contract was signed.
After the sum assured i.e. damages have been paid, the recourse claim may be filed against the owner of the motor vehicle, aircraft, boat or other means of transport who failed to sign compulsory insurance contract. The amount of the claim shall equal the damages paid, interest accrued since the payment of damages, and costs of proceedings.
Compensation for Damage incurred by the use of Unidentified Means of Transport
Article 92
Damages due to death, bodily harm or health impairment caused by the use of an unidentified motor vehicle, aircraft or boat shall be paid up to the amount to which the obligation of the insurance company is limited under this Act with regard to any damage incurred by the use of such means of transport, on the date of the loss event.
In the event of damage incurred by an unidentified motor vehicle, the Guarantee Fund shall indemnify the damage to property if it has compensated a party involved in the accident for severe bodily harm requiring hospitalization, with the 10% deductible of the injured party, provided that such deductible may not be more than EUR 500 in the RSD equivalent on the date of the loss event.
In cases when, after the settlement of damages, it is established that a motor vehicle, aircraft or a boat has caused the damage, the recourse claim shall be made against the insurance company with which compulsory insurance contract was signed, in the amount equal to the damages paid, interest accrued since the payment of damages, and costs of the proceedings.
Payment of the Sum Assured i.e. Damages by Insurance Companies against which Bankruptcy Proceedings have been initiated
Article 93
Damage incurred by the use of a motor vehicle, aircraft, boat or other means of transport, in case when compulsory insurance contract was concluded with an insurance company against which bankruptcy proceedings have been initiated, shall be compensated by the Guarantee Fund.
The rights of the injured party in respect of the bankruptcy estate shall transfer to the Guarantee Fund which has paid the sum assured i.e. damages. The Guarantee Fund shall be entitled to submit this claim until the completion of bankruptcy proceedings in the company under paragraph 1 hereof.
Obligation of Injured Party at the time of filing Claim for Damages
Article 94
In cases referred to in Article 74, paragraph 1 of this Act, the injured party shall file a claim for damages to the Guarantee Fund.
Together with the claim under paragraph 1 of this Article, the injured party shall add proper evidence as well, demonstrating that the damage was incurred by an uninsured means of transport, unidentified means of transport, i.e. a means of transport insured with an insurance company against which bankruptcy proceedings have been initiated.
Filing Lawsuit against the Guarantee Fund
Article 95
If the Guarantee Fund does not respond to the compensation claim within 90 days of the receipt of the claim, the injured party may file a lawsuit against the Guarantee Fund and inform the National Bank of Serbia thereof.
Payment of the Sum Assured i.e. Damages to a Person who is not a Citizen of the Republic of Serbia
Article 96
A person who is not a citizen of the Republic of Serbia and who has suffered damage in the territory of the Republic of Serbia by the use of a motor vehicle, aircraft, boat or other means of transport in cases under Article 74, paragraph 1 of this Act, shall have the right to payment of the sum assured i.e. damages in accordance with the provisions of this Act.
Article 97
A fine ranging from RSD 100,000 to 3,000,000 shall be imposed on a company or other legal person for economic offence:
1) If, as the owner of a means of transport, it sends into traffic a means of transport for which a compulsory insurance contract has not been concluded (Article 4, paragraph 1, Article 14, paragraph 1, Article 18, paragraph 1, Article 61, paragraph 1, and Article 64, paragraph 1);
2) If, as the owner of a means of transport, it fails to provide the driver of the means of transport with the insurance policy during the use of the means of transport, or another evidence of the concluded insurance contract, and as the owner of a motor vehicle, with the European Accident Report (Articles 8, 31, 36, 38 and 105);
3) If, as the owner of a means of transport used in public passenger transport, it fails to indicate the data on the concluded compulsory insurance contract in a visible place in the means of transport and on the ticket (Article 14, paragraph 5);
4) If, as the owner of a means of transport, it fails to notify the liable insurance company about the traffic accident within the time limit set under Article 23 of this Act (Articles 23, 63 and 66);
5) If within such entity, the sale of policies for motor third party liability insurance is carried out by persons who are not authorized to conduct the agency activities in insurance (Article 44, paragraph 3);
6) If it concludes a contract with an insurance company, or with a related party of the insurance company, contrary to Article 44, paragraph 4 of this Act;
The responsible officer of such a company or other legal person shall also be fined from RSD 20,000 to 200,000 for the economic offence referred to in paragraph 1 of this Article.
Article 98
A fine ranging from RSD 300,000 to 3,000,000 shall be imposed on an insurance company for economic offence:
1) If it fails to conclude a compulsory insurance contract in accordance with the insurance terms and premium rates applicable at the time of conclusion of such insurance contract, or rejects an offer to conclude such contract, or fails to hand over the insurance terms and the European Accident Report together with the concluded insurance contract (Article 5, paragraphs 1 to 3, and Article 31, paragraph 2);
2) If it starts implementing the terms compulsory insurance, rate and premium system before the expiry of the time limit referred to in Article 6, paragraph 1 of this Act, or after issuing the order under paragraph 3 of that Article;
3) If it concludes a compulsory insurance contract contrary to Article 7 of this Act;
4) If it fails to collect, process and store data on the insured persons, insured means of transport, loss events, payment of damages and other data concerning compulsory insurance, and fails to keep a database on those data or to deliver such data to the Association in the specified manner (Article 9, and Article 42, paragraph 3);
5) If it does not conclude a contract on motor third party liability insurance using the insurance policy form which is uniform for the territory of the Republic of Serbia (Article 19, paragraph 1);
6) If on the date of the receipt of damages claim it fails to record the claim in the special register of claims, in the order of receipt, or fails to determine the liability and the amount of the claim within the prescribed time limit from the day of receipt of the damages claim, if it fails to deliver an explained offer for indemnity and fails to pay the undisputed portion of the damages, i.e. the damages to the injured party, i.e. fails to notify that person that there are no grounds for compensation (Article 24, paragraph 4, Articles 25 and 27, Article 39, paragraph 3, Article 40, Article 49 and Article 106);
6a) If it does not pay funds according to Article 35 of this Act;
7) If it does not calculate the insurance premium according to the provisions of Articles 42 and 43 of this Act;
8) If it signs a contract with a vehicle inspection station or its related party contrary to Article 44, paragraph 4 of this Act;
9) If it allows the vehicle inspection station to collect the insurance premium (Article 44, paragraph 5);
10) If it operates contrary to the provisions of Article 45 of this Act;
11) If it does not appoint the claims representative for the settlement of claims in EU member states (Article 47);
12) If it does not deliver the data prescribed by Article 50, paragraph 6 of this Act to the Association;
13) If it fails to issue the certificate under Article 59 of this Act in a timely manner;
14) If it does not pay the contributions to the Guarantee Fund, i.e. to the Association according to the provisions of Articles 57, 70, 75 and 112 of this Act;
15) If it acts contrary to Article 108 of this Act.
The responsible officer of the insurance company shall also be fined from RSD 100,000 to 200,000 for the economic offence referred to in paragraph 1 of this Article.
Article 99
A responsible officer of the Association shall also be fined from RSD 100,000 to 500,000 for economic offence:
1) If he/she does not pay the damages to the injured party within the deadline specified in Article 39, paragraph 4 hereof;
2) If he/she fails to publish on the website the data referred to in Article 42, paragraph 4 and Article 70, paragraph 1, item 4 of this Act in a timely manner;
3) If he/she fails to set up the Information Centre, Damages Bureau and Loss Events Register, and does not ensure their operation in accordance with this Act (Articles 50 to 58 and 70);
4) If he/she does not to submit the data in accordance with Article 70, paragraph 4 of this Act.
Article 100
A sole trader - owner of a means of transport shall be fined from RSD 10,000 to 300,000 for a misdemeanor:
1) If, as the owner of a means of transport, puts into traffic a means of transport for which he/she failed to conclude a contract on compulsory insurance (Article 4, paragraph 1, Article 14, paragraph 1, Article 18, paragraph 1, Article 61, paragraph 1, and Article 64, paragraph 1);
2) If, as the owner of a means of transport, he/she does not provide the driver of the means of transport with the insurance policy during the use of the means of transport or another evidence of the signed insurance contract, and as the owner of a motor vehicle with the European Accident Report as well (Articles 8, 31, 36, 38, and 105);
3) If, as the owner of a means of transport used in public passenger transport, he/she fails to indicate the data on the concluded compulsory insurance contract in a visible place in the means of transport and on the ticket (Article 14, paragraph 5);
4) If, as the owner of a means of transport, he/she does not notify the liable insurance company about the traffic accident within the period specified in Article 23 of this Act (Article 23, 63, and 66);
A natural person - owner of the means of transport shall also be fined from RSD 10,000 to 50,000 for the misdemeanor referred to in paragraph 1 of this Article.
Article 101
A driver of a means of transport shall be fined from RSD 10,000 to 50,000 for misdemeanor:
1) If during the use of means of transport he/she does not have an insurance policy with him/her, or other evidence of insurance coverage, international legal instrument on motor third party liability insurance or other evidence of such insurance, or border insurance and the European Accident Report, or does not present them at request of an authorized official, or if in case of a traffic accident he/she fails to provide personal data and data on insurance, or fails to exchange the filled in European Accident Report with all the participants in that accident who are entitled to file claims under on that policy (Articles 8, 31, 36, 38 and 105);
2) If he/she does not provide the data referred to in Article 9, paragraph 2 of this Act (Article 10, paragraphs 1 and 3);
A natural person - participant in the loss event shall be fined from RSD 100,000 to 200,000 for the misdemeanor referred to in paragraph 1, item 2 of this Article.
X TRANSITIONAL AND FINAL PROVISIONS
1. Transitional Provisions to be applied until accession to the EU
Article 102
The provisions of Articles 1 to 101 of this Act shall be applied until the accession of the Republic of Serbia to the EU, excluding the issues governed otherwise by the provisions of Articles 103 to 108 of this Act.
Article 103
The contract on compulsory motor third party liability insurance shall cover the injury or loss occurred in the territory of the Republic of Serbia, unless otherwise governed by an international agreement.
The owner of a motor vehicle, prior to crossing the state border in the vehicle, shall conclude a contract on motor third party liability for injury or loss incurred abroad and to have an international legal instrument as evidence.
The insurance company which has issued to the owner of the motor vehicle the international legal instrument certifying the existence of a motor third party liability insurance with risk coverage abroad, shall pay damages to the injured party for injury or loss caused abroad by the use of that vehicle up to the amount defined by regulations on motor third party liability insurance of the state where the damage occurred, i.e. in accordance with the international agreement, if the international legal instrument is valid in the country where the injury or loss occurred.
The Association defines and prints the form of the international legal instrument referred to in paragraphs 2 and 3 of this Article and controls its use, as well as processing of all damages claims related to that insurance.
Article 104
Foreign legal persons carrying out activities in the area of health, pension, and disability insurance shall be entitled to make recourse claims against the insurance company pursuant to Article 35 of this Act and under the condition of reciprocity.
A person who is not a citizen of the Republic of Serbia, and who has suffered injury or loss in the territory of the Republic of Serbia by the use of a motor vehicle, aircraft, boat or other means of transport in cases under Article 74, paragraph 1 of this Act, shall be entitled to payment of the sum assured, i.e. damages, pursuant to the provisions of this Act, under the condition of reciprocity.
Article 105
When entering the territory of the Republic of Serbia, a driver of a motor vehicle with foreign registration shall have a valid international legal instrument on motor third party liability insurance, which is valid in the territory of the Republic of Serbia and covers damages at least up to the amount specified in this Act.
A legal instrument under paragraph 1 of this Article document shall mean a legal instrument whose validity is recognized by the Association, as a member of the International Insurance Card System (Green Card).
The Association shall guarantee any obligations ensuing from the instrument referred to in paragraph 1 of this Article, up to the amount of the sum insured valid on the date of loss event.
The Association shall notify in timely manner the authority competent for internal affairs of the international legal instrument under paragraph 1 of this article which is considered valid.
The validity of the international legal instrument on insurance shall be verified by the relevant authority competent for internal affairs at the border-crossing, at the time a motor vehicle enters the territory of the Republic of Serbia, as well as in traffic control.
The international legal instrument referred to in paragraph 1 of this Article shall also be required for a motor vehicle transported to the Republic of Serbia by some means of transport, excluding the vehicles not intended for use in the Republic of Serbia.
Persons not having a valid international legal instrument referred to in paragraph 1 of this Article shall conclude a contract on motor third party liability insurance at the border (border insurance) with a local insurance company, valid exclusively in the territory of the Republic of Serbia.
Border insurance referred to in paragraph 7 of this Article shall be contracted for the period of stay in the Republic of Serbia.
Article 106
Damages for which a claim amounts to less than EUR 500 in RSD equivalent, and which are accompanied by evidence based on which the liability of the insurance company can be determined, shall be considered as small claims.
The insurance company shall pay the damages under paragraph 1 of this Article within 8 days from the receipt of the claim.
The insurance company shall pay the damages within the time limit referred to in paragraph 2 of this Article as well in case when in the claim assessment procedure it is established that the damages amount to up to RSD equivalent of EUR 500, although the claim has not been classified as a claim under paragraph 1 of this Article.
Article 107*
(Repealed)
Article 108
Insurance companies carrying out activities in the field of motor third party liability insurance shall implement common insurance terms, premium system with unified premium basis for these activities and minimum premium rates, which also include the bonus-malus system under Article 43 of this Act.
The National Bank of Serbia shall grant prior consent to the common insurance terms, premium system and premium rates from paragraph 1 of this Article adopted by the Association, as well as to their amendments and supplements.
2. Harmonization of Operation and Final Provisions
Harmonization of Operation of Insurance Companies and Setting up Database
Article 109
Insurance companies carrying out activities in the field of compulsory insurance shall harmonize their operation with the provisions of this Act within 60 days from its entry into force, except if the time limits for certain issues are differently set by the provisions of this Act.
The insurance company shall organize the databases under Article 9, paragraph 2 of this Act within six months from the day of entry into force of the regulation under Article 9, paragraph 4 of this Act.
Harmonization of the Association’s Operation
Article 110
The Association shall, within 60 days from the day of entry into force of the present Act, harmonize the provisions of Association’s Articles of Association that relate to the exercise of public authorities and submit them to the Government for consent, pursuant to Article 72 of this Act.
The liabilities of the guarantee fund of the Association, incurred up to the day of entry into force of this Act, shall be settled by the Association in line with regulations that were in force up to the day of entry into force of this Act.
The Association shall pass the regulation referred to in Article 9, paragraph 4 of this Act, within 90 days from entry into force of this Act.
The Information Centre under Article 50 of this Act shall commence its operation within one year from the day of entry into force of this Act.
The Loss Events Register referred to in Article 58 of this Act shall be set up upon the expiry of one year from the day of entry into force of this Act, and as of that time the insurance company shall start issuing the certificate referred to in Article 59 of this Act for the period for which it has appropriate data.
Commencement of Guarantee Fund’s Operation
Article 111
Until the commencement of the operation of the Guarantee Fund, the activities falling within its responsibilities shall be conducted by the Association, according to the regulations applicable up to the day of entry into force of this Act.
The Association shall carry out operations ensued in relation to liabilities of the guarantee fund of the Association under the contracts on compulsory insurance concluded with insurance companies whose license for operations in the field of insurance was revoked up to the day of entry into force of this Act, through a special-purpose account of the guarantee fund of the Association.
The Association shall open the special-purpose account for the guarantee fund of the Association referred to in paragraph 2 of this Article after this Act enters into force.
As from the date of the commencement of operations of the Guarantee Fund, the Association shall transfer to that fund the assets, rights and obligations in respect of such assets, relating to the territory of the Republic of Serbia, as well as the associated equipment, archives and documentation, which were used for carrying out the operations of that fund, excluding those related to the settlement of liabilities referred to in paragraph 2 of this Article. The Guarantee Fund shall also take over the employees of the Association who, at the day of entry into force of this Act, have conducted the operations of the Guarantee Fund referred to in paragraph 1 of this Article.
Sources of Funds for Settlement of Liabilities by the Guarantee Fund of the Association
Article 112
The sources of funds of the guarantee fund of the Association for settlement of liabilities referred to in Article 111, paragraph 2 of this Act shall be: additional contribution by insurance companies and other sources pursuant to regulations applicable up to the entry into force of this Act.
Additional contribution under paragraph 1 of this Article shall be paid by insurance companies by allocating the funds from compulsory insurance premium and the funds gathered from recourse claims against persons who had not concluded liability insurance contracts, in the manner, within time limits and scope established by the minister in charge of finance.
Other sources under paragraph 1 of this Article shall mean the funds obtained from the budget of the Republic of Serbia, a portion of the proceeds from privatization of insurance companies, donations of domestic and foreign legal persons and other funds as established by the minister in charge of finance.
The amount of funds from the budget of the Republic of Serbia shall be determined by the minister in charge of finance.
The Deposit Insurance Agency, performing the function of the bankruptcy administrator in the insurance companies whose license to perform operations in the field of insurance was revoked up to the day of entry into force of this Act, and against which the bankruptcy proceedings have been initiated, shall submit to the ministry in charge of finance monthly reports on reported claims, as well as the projection of the expected maturity of liabilities in the following three months for damages incurred under compulsory insurance contracts concluded with those insurance companies.
The Association shall invest the funds intended for settlement of liabilities of the guarantee fund of the Association, by mutatis mutandis application of regulations governing the deposit and investment of the insurance funds of insurance companies.
Appointment of Members of the Board of Directors of the Guarantee Fund
Article 113
The Government shall appoint the president and members of the board of directors of the Guarantee Fund no later than 60 days before the Guarantee Fund commences its operations.
Adoption of Articles of Association and Appointment of General Manager of Guarantee Fund
Article 114
Within 30 days from the appointment of the president and members of the board of directors, the board of directors of the Guarantee Fund shall adopt the Articles of Association and appoint the general manager of the Guarantee Fund.
Time Limit for Passing Regulations for Implementation of this Act
Article 115
Regulations for the implementation of this Act under Article 19, paragraph 2, Article 26, Article 42, paragraph 3 and Article 43, paragraph 2 of this Act, shall be passed within six months from the day of entry into force of this Act.
Compulsory Insurance for Boat Owners Applicability Date
Article 116
A boat owner under Article 64, paragraph 1 of this Act shall conclude a contract on insurance referred to in that Article, pursuant to the provisions of this Act, no later than the date of the entry of the boat in the appropriate register, i.e. by the date of renewal of such registration.
Delayed Applicability of Certain Provisions of the Act
Article 117
Certain provisions of this Act shall be applicable as of, namely:
1) Provisions of Articles 6, 27, 33, 34, 36, 37 and 38, Article 42 paragraph 1, Articles 46 to 49, Article 50 paragraph 3, item 6) and paragraph 8, Article 51, Articles 53 to 57 and Article 60, as of the date of Serbia’s EU accession;
2) Provisions of Article 22 by the expiration of five years from the date of entry into force of this Act, and Article 43 paragraph 3 after expiry of three years from the entry into force of this Act;
3) Provisions of Article 42, paragraphs 2 to 4, and Article 43 paragraph 1, after expiry of one year from the entry into force of this Act;
4) Provisions of Article 61, paragraphs 2 to 7 and paragraph 9, and Article 62 as of 1 January 2010;
5) Provisions of Article 96, as of the date of Serbia’s accession to the World Trade Organization.
Cessation of Applicability of Regulations
Article 118
As of the entry into force of this Act, the provisions on compulsory insurance (Articles 73 to 108, Articles 111 and 112) and the provisions of Articles 143 to 146 of the Property and Personal Insurance Act ("Official Gazette of FRY", Nos. 30/96, 57/98, 53/99 and 55/99 and "Official Herald of RS", No. 55/04) shall cease to be applicable, except for the provisions of Article 86 of that act which shall cease to be applicable upon expiry of five years after the day of entry into force of this Act.
As of the date of Republic of Serbia’s EU accession, the provisions of Subsection 1, Section X of this Act (Articles 102 to 108), shall cease to be applicable except for:
1) Provisions of Article 104, which shall cease to be applicable on the date of Republic Serbia’s accession to the World Trade Organization.
2) Provisions of Article 107, which shall cease to be applicable on 1 January 2010;
3) Provisions of Article 108, which shall cease to be applicable on the 90th day following the date of Serbia’s EU accession.
Article 119
This Act shall become enter into force on the ninetieth day following the date of its publication in "Official Herald of the Republic of Serbia".
Independent Articles of the Act on Amendments to the Compulsory Vehicle Insurance Act
("Off. Herald of RS", No. 78/2011)
Article 2
The Guarantee Fund under Article 73 of the Compulsory Vehicle Insurance Act ("Official Herald of RS", No. 51/09) shall start performing the activities determined by that Act no later than 30 June 2012.
Article 3
This Act shall enter into force on the day that follows the day of its publication in the "Official Herald of the Republic of Serbia".
Independent Article of the Act on Amendments and Supplements to the Compulsory Vehicle Insurance Act
("Off. Herald of RS", No. 101/2011)
Article 12
This Act shall enter into force on the eighth day following the day of its publication in the "Official Herald of the Republic of Serbia".
Independent Article of the Act on Amendments to the Compulsory Vehicle Insurance Act
("Off. Herald of RS", No. 93/2012)
Article 3
This Act shall enter into force on day that follows the day of its publication in the "Official Herald of the Republic of Serbia".
PUBLISHER'S NOTE
* The provisions of Article 107 of the Compulsory Vehicle Insurance Act ("Off. Herald of RS", No. 51/2009) have ceased to be applicable on 1 January 2010, according to Article 118 of that Act.
** The provisions of Article 26, paragraph 2 of the Compulsory Vehicle Insurance Act ("Off. Herald of RS", Nos. 51/2009, 78/2011, 101/2011 and 93/2012), ceased to be applicable on the basis of Decision of CC IUz No. 909/2010 of 20 December 2012, published in the "Off. Herald of RS", No. 7/2013 of 23 January 2013.