Grounds for Compensation and the Insurance Amount
Within the limits of the compulsory motor civil liability insurance, the insurance organisation compensates the victim for the damage inflicted, except where it was caused by the deliberate action of the victim himself or by the effect of insuperable force. The insurance amount cannot be less than 3750 GEL.
Damage to life and health is compensated under a percentage scheme: in case of death and for group I disability — at 100 percent, group II — 60, group III — 30 percent; for severe bodily injury — 15, for less-than-severe — 10, for light injury — 5 percent. The compensation is one-off and corresponds to the severity of the trauma; if within 1 year of the accident the victim dies or becomes disabled, a recalculation follows with the earlier payment counted in.
Submitting the Claim and the Two-Week Payment Rule
The victim is obliged to submit to the insurer all the essential information known to him concerning the infliction of the damage and the fault of the owner. Where a claim for compensation is presented directly to the owner, the latter must immediately notify the insurer about it.
The insurer must pay the victim the amount not later than two weeks from the moment of receiving all the necessary documents confirming the fact of the damage. That is why the completeness of the document set and the fixation of its receipt determine when this period starts — and this is the most frequently contested point of all.
Refusal, Unjustified Suspension and the Court
Where the payment of compensation is suspended without justification, the insurer pays the victim a surcharge of 0.1 percent of the amount payable for every overdue day. A dispute arising from the application of this law is examined by the court under the procedure established by law.
Where the amount of compensation exceeds the statutory limits, the victim has the right to bring a court action for additional compensation directly against the owner who inflicted the damage. Two separate directions thus emerge — the dispute with the insurer up to the limit, and with the owner above it. Every step of the communication with the insurer is fixed on paper: the list of submitted materials, the confirmation of receipt, the correspondence. It is this trail that later proves in court that the period started and that the suspension was unjustified.
The Role of the Bureau
The law establishes the Bureau of Compulsory Insurance of Georgia, from which compensation is paid for damage caused by an unidentified, an uninsured or a stolen motor vehicle. Where the responsible person is identified, the Bureau is entitled to bring a regress claim for the paid amount directly against the person who inflicted the damage.
Every insurer participating in the compulsory insurance contributes to the Bureau 20 percent of the insurance premium for each insured person. The certificates submitted to the Bureau — on the time, place and cause of the damage — are defined by the Bureau statute, and the general two-week payment requirement does not apply to the Bureau: its terms are governed by the same statute.
The Regress Risk and the Defense Plan
An insurer that has compensated the victim may bring a regress claim against the owner where the damage was inflicted deliberately, where the vehicle was driven in a state of alcoholic, toxic or narcotic intoxication, or where it was driven without the driving right; the claim extends to persons who possessed the motor vehicle unlawfully as well.
Our work proceeds in three stages: assembling the documentary package and fixing its receipt; computing the two-week payment period and the surcharge in case of suspension; and challenging a refusal or a partial payment in court — with the involvement of the Bureau where the vehicle is unidentified or uninsured.
Frequently Asked Questions
Below are the questions we most often receive about MTPL compensation.
Up to what amount is the damage covered?
The insurance amount cannot be less than 3750 GEL; damage to life and health is compensated under the percentage scheme, by severity.
Within what period must the insurer pay?
Not later than two weeks from receiving all the necessary documents; an unjustified suspension adds a daily surcharge of 0.1 percent.
Can a claim above the limit be brought?
Yes — in court, directly against the owner who inflicted the damage.
When does the Bureau pay?
For damage caused by an unidentified, uninsured or stolen vehicle, under the procedure set by the Bureau statute.
How We Help on Legal.ge
The lawyers of Legal.ge represent you in the full cycle of a compensation claim: the documentary package, the fixation of the communication with the insurer, the computation of the surcharge, the appeal of a refusal in court and, where needed, the involvement of the Bureau. Contact us — we will build a precise plan on the documents of your case on Legal.ge.