Reco­very claims

The Motor Vehicle Insurance Act provides that, if a driver causes damage through gross negligence or intent, their insurance company must seek reco­very from them for compensation paid in respect of the loss.

In such cases, the insurance company sends the case docu­mentation to the Motor Vehicle Insurance Reco­very Claims Comm­ittee, which is appo­inted by the Mini­ster of Finance and Economic Affairs.

The Comm­ittee always requ­ests information from the driver and gives them a specified period to submit docu­mentation if they wish. Once that period has expired, the Comm­ittee decides whether the right of reco­very should be exercised in the case and, if so, the amount of the reco­very claim. The right of reco­very applies to losses paid under both the vehic­le’s compulsory thir­d-party liability insurance and comprehensive insurance.

Examples of cases that may give rise to reco­very claims include damage caused by speed­ing, drink-dri­ving, driving under the influ­ence of drugs or other intox­icating subst­ances, driving without a licence, neglig­ently securing a load and arson.