Compensation for Non-Material Damage: What Is the Role of Insurance Companies in Traffic Accidents?

Traffic accidents, unfortunately, are a common occurrence. Beyond the visible material damage to vehicles, they often leave deeper, invisible consequences for the people involved — physical injuries, fear, emotional distress. These consequences are classified as non-material damage, and the process of obtaining fair compensation for them can often seem complex. At the center of this process are the insurance companies. But what exactly is their role, and what are your rights as an injured party?

What Is Non-Material Damage?

Before explaining the role of insurance companies, it’s important to define what non-material damage actually represents. According to the Law on Obligations, damage is defined as the reduction of someone’s property (ordinary damage), the prevention of its increase (lost profit), but also as a violation of personal rights (non-material damage).

For a violation of personal rights, the law provides the right to fair monetary compensation. The court will award such compensation if the severity of the injury and the circumstances of the case justify it. When deciding, the court takes into account the intensity and duration of physical pain, emotional suffering, and fear experienced by the injured person. This forms the legal basis for the financial valuation of the suffering you have endured.

Mandatory Insurance: The Legal Connection to Insurance Companies

The key reason why insurance companies are involved in the compensation of damage lies in the Law on Compulsory Traffic Insurance. According to this law, every motor vehicle owner is obliged to conclude a liability insurance contract for damages that may be caused to third parties by the use of the vehicle. This insurance covers damages resulting from death, bodily injury, impairment of health, as well as destruction or damage to property.

It is precisely this motor third-party liability insurance policy that allows you, as an injured person, to submit your claim directly to the insurance company of the person who caused the accident, instead of suing that person directly.

The Process of Claiming Compensation for Non-Material Damage: Step by Step

The law clearly defines the procedure to be followed when claiming compensation for damage.

1. Submitting a claim directly to the insurance company: As an injured person, you have the right to submit a claim for compensation directly to the responsible insurance company. This right is also confirmed by the Law on Obligations, which states that the injured party may seek compensation directly from the insurer, up to the amount of its liability.

2. Obligation of the insurance company: Upon receiving your claim, the insurance company has a legal deadline of 60 days to provide either a reasoned offer for compensation or a written explanation rejecting the claim. This means that the company cannot simply ignore your request — it must respond with a concrete offer or with clear reasons for refusal.

3. Your response to the offer: If you receive an offer, you have 30 days to respond in writing whether you accept it or not.

4. Payment of the compensation: If you accept the offer, the insurance company is obliged to pay the agreed amount within 14 days from the day it receives your written confirmation. If the company delays payment, it also owes statutory penalty interest.

What If You Are Not Satisfied with the Offer?

Insurance companies, in their assessment, may propose an amount that you believe does not correspond to the non-material damage you suffered. In such a case, the law provides several options:

• Mediation procedure:If you are not satisfied with the offered compensation, you have the right to initiate a mediation procedure in accordance with the relevant regulations on mediation.

• Court procedure:If you disagree with the offer or the explanation, or if the company fails to respond within 60 days, you may file a lawsuit before a competent court.

In court proceedings, the burden of proof lies with you. You must present all relevant facts and propose evidence to support your claim. This usually includes medical documentation, while the key evidence is the expert opinion — determining the intensity and duration of physical pain, emotional suffering, and fear.

Special Cases: Uninsured or Unknown Vehicles

What happens if the damage was caused by a driver of an uninsured vehicle or if the driver fled the scene (unknown vehicle)?Even in these situations, the law provides protection for injured persons through the National Insurance Bureau and its Guarantee Fund.

• Uninsured vehicle:If the damage was caused by a driver of an uninsured motor vehicle, the Bureau is responsible for paying compensation up to the minimum insurance limits set by law.

• Unknown vehicle: If the damage was caused by a driver of an unknown motor vehicle, the Bureau is responsible for paying compensation for death, bodily injury, or health impairment, also up to the minimum legal insurance amounts.

*

Conclusion

The role of insurance companies in the process of compensating non-material damage is central and legally regulated.They are the first and most important point of contact for injured persons, with clearly defined obligations and deadlines for action.

The system of compulsory motor third-party liability insurance provides a mechanism through which traffic accident victims can receive financial satisfaction for their suffering.

It is essential to know your rights:

✅ the right to claim directly from the insurer,

✅ the right to a reasoned offer within the legal deadline, and

✅ the right to seek judicial protection if you believe the offered compensation is not fair.

Understanding this process is the first step toward realizing your rights and obtaining fair compensation for the non-material damage you have suffered.

**

Note: This text is prepared solely for informational purposes and should not be considered as legal advice or guidance for specific actions. Legal matters are complex, and each case has its own specifics that must be assessed individually.For that reason, we recommend consulting a qualified professional — an Attorney at Law, who can provide a tailored solution for your particular legal situation.