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compulsory vehicle insurance

The long-awaited law on compulsory vehicle insurance in the transport sector has recently been adopted. In addition to the innovations brought by the adoption of this law, its consequence is the abrogation of the previous law No. 10.076 / 2009. Let us look at some of the most important innovations and changes brought by law No. 32/2021.

Among the main innovations worth mentioning in this law is the fact that it has given greater importance to non-pecuniary damage by defining it as a biological, existential and moral damage suffered by the violation of non-pecuniary rights and interests, related to physical pain, inability to work, fear, ugliness, pain and spiritual suffering of the injured person and his family in case of death of the person or deterioration of his health. For each non-property damage, relatively large amounts are set as compensation for the injured persons and for each of their family members.

     3. Obligations of the user of the means of transport

Now the owner or user of the vehicle / vessel during its use, is obliged to keep with him:

  • Insurance policy or any other proof of concluding the insurance contract
  • European Accident Report.

But what is the European Accident Report?

This report comes in a form and consists of filling in the personal data of the drivers of the vehicles and vehicles involved in the accident. So if you are involved in an accident with material damage up to the amount of 30,000 ALL then it is not necessary to obtain a report of the violation by the Traffic Police but it is enough to complete and exchange the European Accident Report and then submit it together with the claim for compensation to the relevant insurance company.

This provision aims to facilitate the procedures for obtaining compensation and the avoidance of bureaucratic procedures which include the Traffic Police. In the framework of these measures, a new article has been added which provides that claims for compensation for property damage worth up to 100,000 ALL will be paid by insurance companies within 14 calendar days from the date of filing the claim for compensation

     2. Bonus – malus system

The bonus-malus system is the system for determining the level of compulsory motor insurance premium, based on the history of the insured’s car accidents. This system is one of the risk factors, which insurance companies have the right to apply in the motor insurance liability insurance tariff, for damages caused to third parties by the use of this vehicle.

Simply said, the insurance company is obliged to issue to the insured a certificate of claims history. On the basis of this certificate the insurance company will decide what value will be paid for the insurance contract. So the fewer car accidents you are involved in the lower will be the value you will pay for the insurance contract.

      3. Other changes

  1. Among the main changes brought by the law on compulsory insurance in the transport sector is the fact that liability insurance for damages caused to third parties by the owner of the vehicle must cover these damages regardless of who was the driver of the vehicle.
  2. In case the ownership of the vehicle changes during the insurance period, the rights and responsibilities deriving from the insurance contract pass to the new owner who within 15 calendar days, is obliged to notify the insurance company of the change of ownership of the vehicle and the reflection of this change in the insurance contract.
  3. The driver of the motor vehicle, who enters the territory of the Republic of Albania with a vehicle with foreign registration, must be equipped with valid border insurance in the territory of the Republic of Albania, which covers the period of his stay, but not less than 15 calendar days.So in addition to the equipment with the green card and the document certifying the existence of third party liability insurance, in those cases where there is a special bilateral agreement for vehicles with registration plates of the other signatory country of this agreement, the above-mentioned border insurance is also needed, otherwise the driver of the vehicle is not allowed to enter the territory of the Republic of Albania.
  4. Has the right to claim compensation from the Bureau, the insurance company or from the compensation fund:
  • The injured party who has been damaged within the territory of the Republic of Albania by a motor vehicle, the owner of which is not covered by third party liability insurance
  • The passenger or the beneficiary person according to the coverage of the contract, if it would have been concluded, when the owner of a motor vehicle has not entered into a contract for the provision of passengers in public transport
  • The party who has been harmed by the use of unidentified motor vehicles

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