Drawbacks in the method for organization of the guarantee fund and regulated supervision measures in the new law on compulsory insurances in traffic


Author dedicated first part of the work to studying organisation of the guarantee fund in a new way, provided for by the Law on Compulsory Insurance in Traffic 2009 – Fund that shall in two years time as from coming into force of this new law, i.e. as from 12 October 2011, be organised as a standalone legal entity, instead as per previous Law on Insurance of property and Persons 1996 as an organisational unit of the Association of Serbian Insurers. Appointment of the board of directors and director, content of the board of directors, conditions for appointment of director, method of ensuring means for establishment and start of the funds’ operations, fund’s finance in the first year of operation, position of the employees at fund regarding salaries and other income, lack of possibility to issue penalty measures or supervision measures for ilegal operaions provided for insurance companies that write compulsory insurance in traffic, except issuing orders to fund for fixing illegalties. Based on these and other elements of its status and method of operations he is proving that the guarantee fund shall be created as a quasi state body. Special attention author gives to analysis of possible political reasons why organisation of the guarantee fund shall be changed, after thirteen years of a successful work of guarantee fund within the Association of Serbian Insurers. In addition, an effort was made in the work to study certain disharmonisations of the provisions of the said law about guarantee fund with the EU Directive EU 2009/103/EC.