The Polish Insurance Guarantee Fund (UFG) has 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 19 July 2019 and aims to fix the problem of insurers’ liability level from the past years, which was lower that currently. For example, in 1991 the level of indemnity was around PLN 720,000, increasing year by year to EUR 350,000 in 2005. Nowadays, Polish MTPL compensation limits have greatly increased compared to the limits in the past as an effect of the country’s alignment to European Union legislation.
The UFG estimates that due to the new changes the fund will face an extra cost of PLN 15 million per year for the following decade. Currently the UFG has over 900 pensions in its portfolio. In 2018 the UFG paid PLN 100 million as disability benefits and damages caused by uninsured or unknown drivers. The Polish Financial Supervision Authority (KNF) estimates a total of 300 MTPL cases in which the insured sum has already reached the indemnity cap (about 25% of them) or will be depleted in the next 10 years.
