Worldwide Claims Services KOSOVO UND EUROPA Besnik Z. Nikqi Mr. Sc IIC Assistance L.L.C Prishtina Risiko und Schaden mit Auslandsbezug “Patria est ubicumque bene est” (Proverbia Senecae, s’ehe auch Cicero, Tusculanae disputattiones 5,108) Hinterstoder, Tagungszentrum Hösshalle 18 Oktober 2013
KOSOVO AND EUROPE KOSOVO Inside Europe territorially, but Outside the international Green Card System for the automobilists (domestic or foreign) and the victims in the territory of Kosovo, Seneca’s proverb „patria est ubicumque bene est” in the header of this Conference is one that does not relate to. WHY?
CTPL Insurance in Kosovo from 1999 onwards is shown in four phases: • 1 st Phase – The period of no CTPL Insurance system / 12.06.1999 – 01.03.2000. • 2 nd Phase – UNMIK CTPL Insurance System / Mars 2000 – 18 October 2001. • 3 rd Phase – Central Bank of Kosovo CTPL Insurance System / 18 October 2001 – 29.07.2011. 4 th Phase – CTPL Insurance System of Republic of Kosovo from 29.07.2011 and further.
1 st Phase – The period of no CTPL Insurance system / 12.06.1999 – 01.03.2000. The use of motor vehicles without: • registration documents, • register plates, and • insurance either UNMIK managed to set up; • a new system of motor vehicle registration, • designing temporary Kosovo vehicles register plates • regulation of temporary vehicle ownership registration. • conditions for licensing of the insurance companies as well as the compulsory TPL insurance system. • actualizes more than successfully the issue of incorporating the territory of Kosovo into the Green Card system • actualizes more than successfully the issue of incorporating the territory of Kosovo into the Green Card system
• 2 nd Phase – UNMIK CTPL Insurance System / Mars 2000 – 18 October 2001. The first licensed companies: INSIG – Tirana and AIG – New York. The first TPL policy issued on: 1st of March 2000. Inadequate and poor TPL insurance system: • the lack of the widely known instruments and institutions that protect the traffic accident victims, • poor insurance coverage with limited insurance coverage; 10.000 DM to property, in case of damage to persons 15.000 DM 20.000 DM aggregate insurance sum • passengers were not entitled to claim compensation… • Prescription of claim – 60 days from the day of the occurrence of accident !!! • 1 st of January 2001 – UNMIK introduces Border Insurance
• 3 rd Phase – Central Bank of Kosovo CTPL Insurance System / 18 October 2001 – 29.07.2011. UNMIK Regulation No. 2001/25 of 5th October 2001 Approval of CBK Rule No. 3/2001 dated 18 th October 2001 on Compulsory Third Party Liability Motor Vehicle Insurance Results • 30% lower premium than in the past period • The minimum insurance sums increased more than 10 (ten) times • “Third Party” category is now defined properly, • Guarantee Fund has been set up
• 3 rd Phase – Central Bank of Kosovo CTPL Insurance System / 18 October 2001 – 29.07.2011. Being late on implementing CoB Decisions of 2000 and 2001, Kosovo designed its own temporary solution by; • Introducing TPL Plus insurance certificate providing coverage outside Kosovo • Setting up the CSO (Claims Servicing Organization) for handling TPL International claims in Kosovo, by nominating “IIC Assistance” Prishtina . • Signing of few MoU (based on drafts designed by CoB) with Macedonia, Albania
4 th Phase – CTPL Insurance System of Republic of Kosovo from 29.07.2011 and “status praesens” Approving of Kosovo CTPL Law 04-L/018 (29.07.2011) contemporary Law ( see details in Compendium). Contains; institutes, institutions and nearly all recommendations stipulated by EU Directive 2009/103/EC dated 16 Sep 2009, underlining shortly only some of features: * The highest minimum insured sums in the region: Accident caused by . All categories of vehicles For buses and vehicles transporting dangerous substances: Personal Injury: 1.000.000 EUR 2.000.000 EUR Damage to property. 200.000 EUR 400.000 EUR * In case the insurer fails to indemnify the claimant, for property damage within 15 days and damage to persons within 60 days, penalty interest of 12% shall be payable on the amount of compensation due from the date the claim was presented. * For handling of international claims, could be entitled members of National Bureau and specialized claims handling organization
4 th Phase – “status praesens” in Kosovo CTPL Insurance System / circumstances and phenomena Some of circumstances and phenomena: • For the past 13 years, only two MoU (with Albania and Macedonia) are being implemented, respectively since 2002 “status quo” in this field • Failing in claims handling activity in implementing MoU as well as reimbursements • Failing in claims handling activity also in domestic and international direct and recourses claims followed with enormous cases in court procedure • Very inadequate insurance structure portfolio of insurance industry where CTPL participates more than 70% • Unbelievable continuously present CTPL loss ratio, where paid claims participate less than 40% in premium while in TPL boreder insurance only 10%, which is really strange
WHAT TO UNDERTAKE AND TO ACT, FOR KOSOVO BEING CLOSER TO EUROPE? Both Kosovo and Europe finally should actualize and act intensively for solving Kosovo issue, considering it not as a problem but more as a challenge. KOSOVO: Central Bank of Kosovo (CBK) acting as the insurance supervisor and regulator in the shortest period of time should: -Finalize approving the Regulations prescribed by Law which enable the full implementation of CTPL Law / 2012. -Analyze and explore the phenomenon of the extraordinary CTPL loss ratio present in Kosovo’s insurance industry as well as continually to supervise the solvency of CTPL insurers -Continuously control the insurers in the process of claims handling, reservation of pending claims as well as claims in litigation. -Finally, rigorously implement the prescribed measures / penalty for omissions in claim handling by giving out the strictest prescribed measures such as revoking the license temp. or perm. - Establish an appropriate time limit of approximately one year, inside of which all the insurers will speed up the settlements of litigation cases in order to reach the standard that litigation cases could not exceed on participation of reported claims more than 5%. -CBK together with Kosovo Insurance Bureau (BKS) should clarify the present problems with Bureau of Macedonia and Albania regarding implementation of signed MoU, especially in regard with problems in claims handling and reimbursement.
WHAT TO UNDERTAKE AND TO ACT, FOR KOSOVO BEING CLOSER TO EUROPE? - CBK and BKS should actualize the already signed MoU (Croatia) and initiate signing of the new Ones with the surrounding countries. - A special challenge would be if these bodies realize such kind of MoU arrangements with some of EU countries (DE, CH, A) whose automobilists are in the biggest number on Kosovo roads. If this is reached, the border insurance regime would be replaced with the one from MoU arrangements which would present the first important step of Kosovo in integration to Green Card System. - CBK and BKS should initiate and continue the cooperation with CoB around finding the appropriate temporary models of solving the Kosovo problem until the CoB membership. - BKS should prioritize organizing this institution to fulfill the basic roles to present the embodiment of the real GUARANTEE for functioning as “paying and handling Bureau” . Namely, this does not require more than what the Bureaus in the neighboring countries and other CoB members are. -It is not appropriate the BKS to have claims handling as the main activity, which is what we have now. BKS has to prepare the conditions that this activity to be entrusted and delegated to its members as well as specialized loss adjuster companies in accordance with Art. 19 of CTPL Law. -BKS should not ignore institution of “correspondent” as it is now doing – on the contrary, it should create the conditions to provide this institution for in accordance with CoB regulation.
WHAT TO UNDERTAKE AND TO ACT, FOR KOSOVO BEING CLOSER TO EUROPE? - For any possible success of reaching MoU arrangements with above mentioned EU countries, the main obstacle or condition is to enable the presence of an eminent EU loss adjuster company (such as AVUS), that could give hope and security for foreign insurers national bureaus that their claims in Kosovo will be handled and settled promptly and efficiently in accordance with CoB standards.
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