The Insurer's Duty to Compensate and Excluded Cases
The Law of Georgia on Compulsory Civil Liability Insurance of Owners of Motor Vehicles lays down the insurer's core obligation: the insurance organisation compensates the victim for the damage inflicted, except where it is caused by the deliberate action of the victim himself or by the effect of force majeure. This means that damage which the victim deliberately brought upon himself, or which results from insurmountable force — extraordinary, unavoidable and insurmountable circumstances — is not subject to compensation.
The Minimum Insured Sum and Health-Damage Percentages
The law fixes a floor for the insured sum: it may not be less than 3750 lari. Damage caused to the victim's life and health as a result of the owner's operation of the motor vehicle is compensated by the insurer from the insured sum in the following percentages:
- in case of death — 100 per cent;
- upon establishment of the victim's disability: group I — 100 per cent, group II — 60 per cent, group III — 30 per cent;
- for severe bodily injury — 15 per cent;
- for slight bodily injury — 5 per cent;
- for less severe damage to health — 10 per cent.
Damage to life and health is compensated by the insurance organisation in a single payment, according to the severity of the trauma received in the road traffic accident. If, within 1 year of the accident, the victim dies or becomes disabled as a result of the trauma, the compensation is recalculated with credit for amounts already paid. This recalculation rule is one of the most frequently litigated issues in practice.
The Victim's Duties and Damage Above the Limit
The victim is obliged to submit to the insurer all essential information known to him concerning the infliction of the damage and the owner's fault. In practice this means that the success of a claim largely depends on the documentary basis: materials confirming the fact of damage and the fault must be collected and submitted to the insurer.
Where the amount of compensation exceeds the limit established by the law, the victim is entitled to bring an action in court for additional compensation of the damage directly against the owner who caused it. A two-tier structure thus emerges: up to the limit the insurer answers, while for the part above the limit the victim claims from the owner through the court.
The Insurer's Right of Regression — Exhaustive Cases
An insurer which has compensated the victim's damage may bring a regress claim against the owner only in the following cases: where the damage was inflicted deliberately; where the motor vehicle was driven in a state of alcoholic, toxic or narcotic intoxication; and where the motor vehicle was driven without the right to drive. A regress claim is also brought against persons who unlawfully possessed the motor vehicle, and against the organ responsible for testing roadworthiness, where it is confirmed that the testing was conducted in violation of the testing rules. In all other cases regress is excluded by the law.
Payment Deadline and Consideration of Disputes
The insurer is obliged to pay the victim the amount determined by the law no later than two weeks from the moment of receipt of all necessary documents confirming the fact that damage was inflicted. Where payment of compensation is suspended without justification, the insurer pays the victim interest for each day of delay at 0.1 per cent of the amount payable. Disputes arising in the application of the law are considered by the court under the procedure established by law.
In preparing a claim, three parameters are therefore decisive: the moment the complete set of documents is submitted, the two-week deadline, and the justification of any suspension. If the insurer misses the deadline or suspends payment without justification, the victim obtains grounds to claim both the principal amount and the interest.
Frequently Asked Questions
What is the minimum threshold of the insured sum?
The insured sum may not be less than 3750 lari; health damage is compensated from this sum at 100 per cent for death and group I disability, 60 per cent for group II and 30 per cent for group III.
When does the insurer refuse compensation?
The insurer does not compensate damage caused by the victim's deliberate action or by force majeure; even in such cases the dispute may nonetheless reach the court.
When may the insurer claim regress against the owner?
Only for deliberately inflicted damage, driving in a state of intoxication or driving without a licence, and also against unlawful possessors and an organ that breached roadworthiness testing rules.
Within what term must the insurer pay?
No later than two weeks from receipt of all necessary documents; on unjustified suspension the victim recovers interest of 0.1 per cent of the payable amount for each day of delay.
How We Help on Legal.ge
The Legal.ge team assists at every stage of a compulsory motor insurance dispute: assembling the documentary set, the claim to the insurer, calculating deadlines and interest and, where necessary, court proceedings. Write to us — we will assess your case and plan effective steps.