Filenews 27 February 2022 - by Theano Thiopoulou
Road accidents have taken the form of a scourge, often involving, for those affected, in addition to their physical and mental suffering, which is the most important, additional painful burdens, which they have to face, in order to be compensated for the damages they have suffered. One such case is that in which the road accident is caused by the fault of a person who was driving an uninsured vehicle. If you're driving around the city in your car, there's a chance you'll be embroiled in a similar story. The important thing is to know what to do and how the car insurance policy you have covers you.
"F" presents a useful guide for such cases. According to the data provided by the Motor Vehicle Insurers Fund (TAMO or Motor Insurer's Fund of Cyprus) (MIF), at the end of October 2021 the active licensed vehicles outside the government were 753,530, the actively insured licensed vehicles 686,153, the active uninsured licensed vehicles 67,377 and the ratio of uninsured to active vehicles 8.9%. In the corresponding period of 2020 the percentage of uninsured vehicles to active vehicles was 11.1%, in 2019 at 9.8% and in 2018 at 9.2%. It should be noted that the system does not know exactly how many of these vehicles are immobilized and how many are in circulation.
Based on the data, between January and September 2021 the compensation given by the Fund in accidents with uninsured vehicles was €2,540,895 and the number of accidents was 580. In 2020 the compensation given by the Fund in accidents with uninsured vehicles was €2,465,909 and the number of accidents 650, in 2019 the compensations were €3,043,500 and the number of accidents 675. In 2018, compensation was €5,316,005 and the number of accidents was 661. In 2017, the compensation paid by the Fund was €5,697,028 and concerned 651 number of accidents. In 2016, the compensations given by the Fund were €3,336,449 and the number of accidents 643. In 2015 the compensations were €5,365,885 for 679 number of accidents, in 2014 the compensations were €5,310,221 for 656 accidents, in 2013 the compensation was €6,439,941 for 877 accidents and in 2012 the amount of compensation was €5,497,392 for 840 accidents.
Lifeline the Fund
The Motor Vehicle Insurers Fund operates as an effective organization to serve the purpose for which it was established. The aim is to pay, under certain conditions, fair compensations to third parties, in relation to liability: drivers of uninsured vehicles, drivers of unidentified vehicles and victims of drivers of vehicles insured with insurance companies that are in liquidation, while preserving the financial ability to fulfil the above obligations, in accordance with Cypriot legislation and the international conventions that the Fund has signed.
The Motor Vehicle Insurers' Fund was established in 1969 and continues to operate under the provisions of the Motor Vehicles (liability insurance against third parties) law. The Fund is financed by the imposition of a charge on motor vehicle insurance premiums, currently set at 5% and collected through insurance companies. The Fund receives a premium from the insured persons (through the insurance companies), which is determined in accordance with the instructions of the Minister of Finance from time to time, issued after consultation with the Fund and based on the needs of the Fund. The amounts collected by the insurance companies are transferred to the Fund "within two calendar months of the end of each quarter".
Involvement of an uninsured vehicle
If someone is involved in a car accident with an uninsured vehicle in Cyprus for which he is not responsible and asks for compensation from the Fund, he/she should:
- If it is a material damage
To notify the Police, informing them of the involvement of an uninsured vehicle, to notify the Fund to inspect the damage of the vehicle before the start of the repairs, to submit a claim on the specified form, by presenting a registration document and the insurance certificate of your vehicle that was valid on the day of the accident.
- In the case of bodily injuries
The Police must be notified and informed about the involvement of an uninsured vehicle, a claim must be submitted on the specified form, all medical certificates and supporting documents must also be attached and all the necessary information and documents must be submitted.
Involvement of an unknown vehicle
If a driver is involved in a car accident in Cyprus with an unknown vehicle, for which he is not responsible, he should call the Police to attend the scene or notify them to record the accident within 48 hours. Immediately notify the Fund to investigate the accident, submit a claim on the specified form, presenting a registration document and the insurance certificate of your vehicle, which was valid on the day of the accident. In the event of an accident involving an unknown vehicle for which you are not responsible, you or your relatives may be entitled to compensation from the Fund: For bodily injury or death. Under specific conditions, for material damage over €500.
In case the Police refuse to come to the scene of the accident on the grounds that there are no bodily injuries, it should be stated whether either an uninsured or a foreign vehicle is involved, or any other criminal offense has been committed, e.g. traffic lights violation, as well as other conditions that require the presence of the Police at the scene.
Involvement of vehicles with foreign plates
If someone has been involved in an accident in Cyprus with a vehicle with foreign registration plates, they should call the Police to attend and record the accident. Note the registration numbers of the foreign vehicle and its country of origin. Ask the foreign driver to present his green card or insurance policy and he must contact the Cyprus International Insurance Office as soon as possible.
If the foreign insurance company has appointed a correspondent in Cyprus, the Cyprus international insurance office will instruct the person concerned to contact the correspondent of the foreign insurance company. If the foreign insurance company has not appointed a correspondent in Cyprus, the Office (MIF) will handle the case under the terms of the consolidated agreement. The Fund should inspect the damage to the vehicle before the start of the repairs. You will also have to submit a claim on the specified form, presenting the title deed and the insurance certificate of the vehicle that was valid on the day of the accident. In case of bodily injury, all medical certificates and supporting documents must also be attached.
Rejection by three insurance companies
In view of the fact that the "consortium of insurers", following the agreement of the Commission for the Protection of Competition, has expanded its activities to cover "undesirable risks", the Motor Vehicle Insurers' Fund undertook to refer to the Consortium such risks for insurance, provided that the following procedure is followed:
- Any driver who is rejected sequentially by three insurance companies to which he/she applies for insurance may apply to the Fund by presenting certificates of rejection from those companies. An application for coverage must be submitted through the Fund, accompanied by 3 rejections from an equal number of insurance companies. The Fund sends it to the insurance companies, which will decide whether they are prepared to negotiate the issue of insurance coverage.
- Insurance companies are obliged to respond positively or negatively within 48 hours of receiving the application by e-mail. If one or more positive responses are received, the Fund will refer the complainant to the companies that responded positively. Otherwise, interested parties will be referred to the consortium of insurers for insurance, with the Fund's certification that they are receiving "unacceptable risks".
