Damage caused by a road accident: practical aspects of insurance compensation

29.10.2024

Damage caused by a road accident: practical aspects of insurance compensation

About the damage caused as a result of a road accident: practical aspects of insurance compensation, Valeriya Shkvarko, secretary of the NAAU Committee on Civil Law and Procedure, told about the damage caused as a result of a road accident: practical aspects of insurance compensation during an event to improve the qualifications of lawyers held at the NAAU Higher School of Advocacy.

Together with the participants, the lecturer analyzed in detail the damage caused by the road accident, namely:

1. The circle of persons who are responsible for causing damage as a result of a road accident.

2. Deadlines for applying for damages.

3. Recovery of damage caused to life, health and lost income due to loss of working capacity.

4. Liability for untimely fulfillment of the obligation to compensate for damage.

As part of the characterization of the damage caused as a result of the road accident, the following is emphasized:

1. The circle of persons responsible for causing damage as a result of a road accident:

  1. Insurance company

Imposition of the obligation to compensate damages within the limits of insurance compensation on the insured, who concluded the relevant insurance contract and pays insurance payments, contradicts the purpose of the institute of civil liability insurance. (Resolution of the Supreme Court of Ukraine dated July 4, 2018, case No. 755/18006/15-ts).

  1. Guilty person in a road accident

It is correct to collect from the guilty driver the difference between the actual cost of repairs, taking into account the replacement of worn parts with new ones (without taking into account the coefficient of physical wear) and the insurance compensation paid by the insurer in the amount of the cost of restorative repairs of the damaged car, taking into account the wear and tear of the parts to be replaced (Decision of the Supreme Court of Ukraine dated December 2, 2015, case No. 6-691cs15).

If to restore the previous condition of a thing that had a certain amount of wear and tear (for example, a car), new components, parts, and components of a different modification were used, which are produced in place of discontinued homogeneous products, the person responsible for the damage does not have the right to demand consideration of the wear and tear of the property or the lower cost of the damaged parts of the previous modification (Resolution of the Plenum of the Armed Forces of Ukraine dated March 27, 1992 No. 6 “On the practice of consideration by courts of civil cases on claims for compensation of damage”.

The insurer does not cover depreciation/amortization and the amount of the deductible, in some cases VAT. Such damage falls on the person responsible for the accident.

  1. MTSBU

Reimburses in case of:

– declaration of bankruptcy and/or liquidated insurer

– lack of policy

– the guilty driver disappeared from the scene

– the person has automatic insurance

The MTSBU is obliged to compensate the damage caused by the victim under certain conditions, in particular, the MTSBU compensates the damage at the expense of the funds of the victims’ protection fund under the conditions specified by this Law, in case of insufficient funds and property of the insurer – a member of the MTSBU, which has been declared bankrupt and/or liquidated , to fulfill his obligations under the contract of compulsory civil liability insurance (subparagraph “g” of the first part of Article 41 of the Law), and at the expense of the funds of the insurance guarantee fund, indemnifies the damage in case of insufficient funds and property of the insurer – a full member of the MTSU in in the same cases (subparagraph “a” of clause 41.2 of article 41 of the ZU “On mandatory civil liability insurance of owners of land vehicles”). Resolution of the VP of the Supreme Court of February 22, 2022 in case No. 201/16373/16-ts (proceedings No. 14-27ts21)

  1. Employer

A person who drives a vehicle in connection with the performance of his labor (official) duties on the basis of an employment contract (contract) with a person who, on the appropriate legal basis (property right, other property right, contract, lease, etc.) owns a vehicle, if a civil law contract has been concluded with him. Such a person, taking into account the nature of the relationship between them, can be held liable by the employer only retroactively in accordance with Article 1191 of the Civil Code of Ukraine. (Resolution of the Supreme Court of Ukraine dated March 1, 2018, case No. 201/14573/16-ts (proceedings No. 61-216св17).

2. Terms of application for compensation of damages

The resolutions of the Supreme Court of the CCS stipulate that applicants must comply with the one-year deadline for applying for the payment of insurance compensation.

  • Resolution of the Grand Chamber of the Supreme Court of December 14, 2021 in case No. 147/66/17;

  • Resolution of the Grand Chamber of the Supreme Court of February 22, 2022 in case No. 201/16373/16-ts;

  • Resolution of the Supreme Court as part of the panel of judges of the Second Judicial Chamber of the Civil Court of Cassation dated August 21, 2018 in case No. 227/3573/16-ts.

3. Recovery of damage caused to life, health and lost income due to loss of working capacity

The damage caused to the life and health of the victim as a result of the road accident is: damage related to the treatment of the victim; damage related to the victim’s temporary loss of working capacity; damage related to the permanent loss of working capacity of the victim; moral damage, which consists in physical pain and suffering, which the victim – a natural person suffered in connection with mutilation or other health damage; damage related to the death of the victim (Clause 23.1 of Article 23 of the Law).

  • Resolution of the Grand Chamber of the Supreme Court of June 29, 2022 in case No. 477/874/19;

  • Resolution of the Supreme Court as part of the Joint Chamber of the Civil Court of Cassation dated December 5, 2022 in case No. 304/936/19;

  • Resolution of the Grand Chamber of the Supreme Court dated October 5, 2022 in case No. 906/1318/19 (295/16026/18).

4. Liability for untimely fulfillment of the obligation to compensate for damage

Pursuant to Article 979 of the Civil Code of Ukraine, an insurance contract is a legal relationship in which the insurer undertakes, in the event of an insured event, to pay the insured or another person specified in the contract a sum of money (insurance payment). Therefore, such a legal relationship is a monetary obligation. Taking into account the legal nature of the legal relationship of the parties as monetary obligations, they are subject to the second part of Article 625 of the Civil Code of Ukraine as a special type of civil liability for late payment of the obligation. (Resolution of the Supreme Court of the Supreme Court of June 20, 2018, case No. 308/3162/15-ts (proceedings No. 14-178 of the ts 18).

  • Resolution of the Grand Chamber of the Supreme Court of June 20, 2018 in case No. 308/3162/15-ts;

  • Resolution of the Supreme Court as part of the panel of judges of the First Judicial Chamber of the Civil Court of Cassation dated February 13, 2019 in case No. 456/3525/15;

  • Resolution of the Supreme Court as part of the panel of judges of the First Judicial Chamber of the Civil Court of Cassation dated August 17, 2022 in case No. 761/15232/18;

  • Resolution of the Grand Chamber of the Supreme Court of July 19, 2023 in case No. 910/16820/21.

Primary source: https://tinyurl.com/2crz6mua

News of partners and mass media