Legal Acts in English

The present Law regulates compulsory traffic insurance, establishes the Guarantee Fund, regulates its authority and financing method, and entrusts public functions to the Association of Serbian Insurers (hereinafter referred to as the "Association").

The types of compulsory insurance in traffic (hereinafter referred to as "compulsory insurance"), within the meaning of this Law, are:

1) Accident insurance for passengers in public transport;

2) Insurance for the owners of motor vehicles against liability for damage caused to third parties ;

3) Insurance for aircraft owners against liability for damage caused to third parties and passengers;

4) Insurance for boat owners against liability for damage caused to third parties.

The owner referred to in paragraph 1 of this Article also means any user or other person registered as the owner of a means of transport according to law.

Under the conditions and in the manner stipulated by this Law, the insurance of the owner of a means of transport against liability for damage caused to third parties covers the damages to third persons made by such means of transport, irrespective of who operates the means of transport.

The terms and expressions used in this Law have the following meanings:

1) "Traffic accident" is an event where damage has resulted from the use of a means of transport;

2) "Means of transport", including a motor vehicle, aircraft, boat or other means of transport anticipated by this Law, has the meaning as provided by the law governing the relevant type of transport, where a motor vehicle also includes a motor vehicle trailer;

3) "User of a means of transport" is a natural or legal person using a means of transport with the owner's consent;

4) "Liable insurer" is an insurance company with which the owner of a means of transport, which incurred the damage, signed a contract on compulsory insurance;

5) "Injured party" is any person having right to compensation for damages under this Law;

6) "Multilateral agreement" is an agreement concluded between national insurance bureaus of the member states of the European Economic Area and other associated countries, pursuant to which each national insurance bureau guarantees for damages incurred in its territory by the use of a motor vehicle normally based in the territory of another state, which is a signatory to the agreement, irrespective of whether the vehicle is insured or not;

7) "Territory in which the motor vehicle is normally based" is the territory of a member state of the European Union:

- whose registration plate is affixed to the motor vehicle, irrespective of the fact whether the plates are permanent or temporary,

- which issued the insurance plate or other identification mark similar to a registration plate affixed to the motor vehicle, in case where registration is not necessary for a particular type of vehicle,

- where the user of a motor vehicle has a residence, in case when a particular type of vehicle does not require a registration plate or other identification mark similar to registration plate,

- in which a traffic accident occurred, in case when the motor vehicle involved in the accident does not have a registration plate or has a registration plate not corresponding or no longer corresponding to the vehicle;

8) "Special Drawing Rights" (hereafter referred to as "SDR") is the basic unit of account defined by the International Monetary Fund;

9) "Maximum Take-Off Mass" (hereinafter referred to as "MTOM") is the maximum mass of an aircraft permissible at take-off, which corresponds to the allowable weight specific to each type of aircraft and stated in the aircraft airworthiness certificate.