Insurance Guarantee Fund of Poland (UFG) announced it will be compensating the victims of accidents from the past years, in the cases where insurers’ motor liability insurance funds have been exhausted.
The new regulation was signed on July 19th, 2019, and comes to fix the problem of insurers’ liability level from the past years, much lower than today’s ones. In some cases, the victims would not receive a fair amount of compensation for their material damage of physical trauma, due to the exhaustion of insurers’ funds, that reached the limits mentioned in the insurance contract.
For example, in year 1991 the level of indemnity limit was around PLN 720,000, increasing year by year to EUR 350,000 in year 2005. To this day, Poland’s MTPL compensation limits have greatly increased compared to the limits in the past, as an effect of country’s alignment to European Union legislation.
According to the new regulation, the accident victims that have met the exhaustion of the liability funds of the insurer in charge for their indemnity can now apply to UFG’s new benefits, under the form of pensions, depending on their current situation. UFG believes that these benefits will be especially useful to those involved in a car accident at a young age, who suffered serious injuries and are now unable to make decent earnings due to their handicaps…