Problems related to the recourse right of the social insurers against MTPL insurers


The Compulsory Traffic Insurance Law of the Republic of Serbia prescribes the rights of the social insurers to the recourse against motor third party liability insurers. This legal obligation is transferred to the judicial practice. Therefore, the problem arises not from the legality. It started when the Law on amendment of the Compulsory Traffic Insurance Law was passed. The amendments prescribed that the obligation of the MTPL insurers is determined in the percentage of the gross premium payable to the Republic Health Insurance Fund and it is used to cover all recourses of all social insures. The lump sum contribution payable in advance and is not preconditioned by the specific claim disables the MTPL insurer to apply real legal rules to claim settlement and to determine if its liability is confirmed and if so to what extent. Apart from the fact that the amount of contribution is unjustifiably high the insurers are thus obliged to conduct a number of business contrary to the rules of the actuarial and insurance practice, contrary to Law and the rules of its business policy adopted on the basis of the current regulations.
In order to cease with all the irregularities we believe that the initiative of the Association of Serbian Insurers to start the procedure to determine whether this provision is constitutional is justifiable. It should be expected for the Constitutional Court of the Republic of Serbia to adopt the decision to revoke the execution of the provisions of the Compulsory Traffic Insurance Law that prescribe the lump sum amount of contribution to the Republic Health Insurance Fund. Thus, the recourse of the social insurers would be handled based on the specific claim and other obligations related to the claim settlement in the manner and trough the procedures applicable to all other third parties as it was the case before the amendments of the Compulsory Traffic Insurance Law.