SPECIAL PROCEDURE FOR COMPENSATION OF SMALL CLAIMS IN THE COMPULSORY MOTOR THIRD PARTY LIABILITY INSURANCE IN SERBIA

The Law on Compulsory Traffic Insurance in Serbia was passed in 2009. The Law stipulates general procedure, including provisions for compensation of small claims. There are two articles relating to compensation of small claims. These two articles introduce legal practices for damage compensation of up to EUR 500 and/or EUR 1000 (in dinar equivalent). The legal practice relating to damage compensation of up to EUR 500 came into force on October 12, 2009. The legal practice in relation to EUR 1000 damage compensation will be implemented after Serbia joins the EU. The author considers this latter solution not to be in accordance with the Constitution of the Republic of Serbia and proposes that the Constitutional Court of Serbia declares some 30-40% of the provisions unconstitutional. The author further elaborates his opinion. The author also proposes the wording to be rephrased to introduce „smaller damage“ or „damage of smaller volume“ instead of EUR 500 and/or EUR 1000 compensation. Regardless of the damage amount the author proposes that all disputes arising out of this Law should be resolved in an out-of-court settlement.