The Polish Motor Insurers’ Bureau has settled the liabilities for cross-border damage caused by drivers of vehicles insured in Gefion. The amount was nearly PLN 7 million.
Gefion Insurance, which is a Danish insurance company, operated in Poland under the freedom to provide services. The insurer offered primarily third-party motor liability insurance. In June 2021, the Danish court announced the bankruptcy of the legal successor to Gefion Insurance A/S. The reason was the company’s financial troubles.
Due to the loss of solvency and the declaration of bankruptcy, the Polish Motor Insurers’ Bureau (PMIB) decided to take over Gefion’s liabilities.
„Like any insurance company operating in Group 10, Division II, Gefion was a member of PMIB and its third-party liability policies were valid in Poland as well as in every country in the EEA, Andorra, Serbia, and Switzerland. On that account, PMIB guaranteed the fulfilment of its obligations resulting from accidents caused by the use of vehicles insured with Gefion”. – said Mariusz Wichtowski, President of the Management Board of PMIB.
Untill the end of last year PMIB settled the liabilities of the Danish insurer in the amount of nearly PLN 7 million. Moreover, it created provisions in a similar amount to cover potential payments in the following years.
„In the case of cross-border events, both the flow of information about damage resulting in liability for compensation and settlements are made with a significant delay. For this reason it is possible that the value of liabilities will exceed the claims submitted so far”. – adds Mariusz Wichtowski.
