In the event of a road accident, if the culprit has an MTPL policy, the insurance company will cover all losses to the victim. However, there are a number of reasons why the insurance company may later demand the money back. Find out more about what insurance recourse is and how to avoid it

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TPL insurance is a compulsory car insurance policy in Ukraine. As a rule, the culprit's motor third party liability insurance reimburses the injured party in the event of an accident. However, there are certain cases in which the insurance company has the right to claim money from the person responsible for the accident. What law regulates this and in what cases the driver will be forced to return the money - we will discuss further in the article.

Recourse in insurance

Recourse is a concept that provides for the insurance company to recover funds from the person involved in an accident. In this case, the sequence of actions is as follows:

● a person gets into a road traffic accident;

● is found guilty;

● if you have a compulsory motor third party liability insurance policy, the insurance covers the damage caused to the other car;

● within 3 years after the indemnity, the insurance company reserves the right to file a lawsuit to recover the funds from the culprit;

● hearing of the case in court and making a decision;

● the culprit's repayment to the insurer.

The main causes of recourse in insurance

● The person found guilty of the road traffic accident was under the influence of alcohol or drugs or was taking drugs that reduce the speed of reaction on the road.

● The driver does not have the category to drive a vehicle.

● Refusal to take alcohol and drug tests.

● The culprit left the scene of the accident without permission.

● The technical condition of the vehicle does not meet legal standards.

● The driver did not inform the insurance company about the accident in time (within 3 days after the accident).

● At the time of the accident, the culprit's motor third party liability insurance has expired.

The right of the insurance company to file a recourse claim is regulated by Article 38 of the Law of Ukraine "On Compulsory Insurance of Civil Liability of Owners of Land Vehicles".

There is no point in ignoring the lawsuit, because if you do not appear at the hearing, the decision will still be made in absentia. It is also worth noting that recourse includes not only the actual amount of damages, but also payment of the insurance company's expenses, expert examination, etc.

There are also cases when the insurance company collects compensation not from the culprit of the accident, but from the relevant authorities responsible for the condition of the road, if it was the cause of the accident.

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How to avoid recourse?

To avoid getting into such a situation, we advise you to notify your insurance company no later than 3 days after the accident. In addition, to avoid recourse, you need to monitor the technical condition of your car.

Insurance companies sometimes abuse the right of recourse, so you should clearly know your rights and the factors that may give rise to a legitimate recourse claim. You can read the official list of reasons for recourse on the website of the Parliament of Ukraine. If your situation does not coincide with these reasons, the insurance company has no right to claim compensation.

Insurance companies may refer to the lack of notification of the accident, which the driver must send within 3 days. However, in such situations, the court often takes the driver's side, as the fact that the insurance company has reimbursed the driver for the damage indicates that the driver was sufficiently aware of the accident.

Lastly, and perhaps most importantly, it is important to control the validity period of your CTPCI. Remember that a valid motor third party liability insurance policy (MTPL) is a guarantee of compensation for damages in the event of an accident. On the Visit Ukraine portal, you can buy a motor third party liability insurance policy from a licensed insurer. Packages with a deductible of UAH 3200, UAH 1600 and UAH 0 are available.

Just a reminder. Due to the martial law, drivers should be careful when using dashcams in Ukraine. Read here to find out whether you can drive with a dashcam and on which road sections you should switch off the device.

Photo: Freepik

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