director - Ministarstvo finansija

Law on Compulsory Traffic Insurances
BULLETIN OF THE MINISTRY OF FINANCE/JANUARY-MARCH 2006
Law on Compulsory
Traffic Insurances
Pursuant to the existing law, the Compulsory
Traffic Insurances are regulated
by the single Law on Property
and Personal Insurance ("Official Gazette
of the Federal Republic of Yugoslavia"
No.30/96). In contrast to that, the Draft of
the new Law on Insurance envisages adoption
of the special law on compulsory traffic
insurances.
The reason for such approach in defining
the legal regulations was determined
due to the need to include in the provisions
of this law a wide range of Republic
entities, which should not be set in the framework
of the laws regulating the conditions
and manner of establishment, doing
business and supervision of insurance
companies and companies which perform
activities linked to the insurance activities.
At the same time, separating compulsory
insurances in a special law points to significance
of this insurance and enables its
easier application. In addition, European
Union Directives, which attach special importance
to compulsory insurances, as
well as many Conventions of international
organizations in relation to traffic indicate
to special definition of regulations on the
level of compulsory insurance.
The Law on Compulsory Traffic Insurances
introduces certain novelties, such
as e.g. obligation to collect and keep data
necessary to conclude an agreement on insurance
and indemnification of damages.
In addition, this law envisages the possibility
for healthcare, pension and disability
insurance funds and voluntary healthcare
insurance funds to ask the insurance companies
to refund the amounts paid to
their insurees, within limits of obligations
assumed by the insurance agreement,
what was not enabled by the past law.
The Law envisages obligatory cooperation
of insurance companies, which handle
compulsory insurances in the Republic,
in particular in relation to:
- indemnification on the basis of the
international agreements (green cards);
- indemnification of damages caused
by uninsured, unknown vehicles and vehicles
insured with dissolved insurance companies;
- proposals of conditions and tariffs of
premiums for compulsory insurances, etc.,
Novelty in the Draft Law is establishment
of an Indemnification Fund,
which will perform indemnification of damages
caused by the uninsured and unknown
vehicles and damages caused by the
vehicles insured with the dissolved insurance
companies. The activities, which were
transferred to the Association of Insurance
Organizations of Serbia and Montenegro,
(Guarantee Fund) by means of public
authorizations in accordance with the
past insurance, will be dealt with on the
level of the Republic of Montenegro according
to the new regulations. The Indemnification
Fund is to be established within
the regulatory body, and the manner of its
functioning will be regulated by special regulations.
Such regulations are adjusted to the
conditions of Montenegrin Insurance
Market.
Milanka Obradović
Draft Law on Compulsory Traffic Insurances
consists of the following nine chapters:
Basic Provisions; Insurance of Passengers
in Public Transport against Consequences
of Accident; Insurance of Motor
Vehicles Owners against responsibility for
damage inflicted to third parties; Insurance
of Vessels Owners against responsibility
for damage inflicted on third parties; Insurance
of Aircrafts Owners against responsibility
for damage inflicted on third parties;
Cooperation of Insurance Companies
and Branches of Foreign Insurance Companies;
Indemnification Fund; Penalty
Provisions; Transitional and Final Provisions.
Adoption of this law will regulate the
compulsory insurances issue in Montenegro
in a more comprehensive manner and
provide for protection of the citizens of
Montenegro by means of relevant penalty
policy in the framework of responsibility
for damages caused by the traffic vehicles
in the public transport.
Department for insurance control
Coordinator of the Department,
MILANKA OBRADOVIĆ
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