The sufficiency of the minimum amounts in compulsory liability insurance to cover personal injury claims – based on motor third party liability insurance and medical liability insurance
The sufficiency of the minimum amounts in compulsory liability insurance to cover personal injury claims – based on motor third party liability insurance and medical liability insurance

Summary/Abstract: The main role of the liability insurance is to protect the insured person or entity against the financial consequences of the potential claims that can be consequences of the events for which the insur- ance holder is responsible and which they are obliged to repair; on the other hand, it protects the third parties. However, it should be noted that the responsibility of the insurer is limited by the amount of cover defined in the contract. The aim of the paper is to investigate whether these amounts are suf- ficient to cover potential claims made by victims. The authors will focus on personal injuries, which are mainly connected to disability benefits, as this is the field where the highest compensation are paid, especially connected to annuities. The analysis will be based on the results of simulations of annuities conducted on cases divided by gender, age of the victim, and selected European countries. The results will be compared to minimum amounts of cover in motor third party liability insurance and liability in- surance of entity engaged in medical activities.

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