Title: Is the minimum amount of coverage from motor third party liability insurance enough to cover personal injuries?

Authors: Anna Jedrzychowska; Ewa Poprawska

Addresses: Wroclaw University of Economics, Wrocław, Poland ' Wroclaw University of Economics, Wrocław, Poland

Abstract: MTPL insurance is the most common insurance in Europe; in most countries, it is compulsory insurance which enables the functioning of the following systems, among others: the green card and the multilateral agreement. For this insurance, insurers guarantee insurance protection up to the guaranteed amount. In view of the universality of these products, basing these products on the international protection system for aggrieved parties in motor vehicle accidents, increases in the payment of damages for personal injuries, as well as differences in the earnings which are supposed to be compensated in various countries, a question arises as to whether the amount of the minimum guaranteed sum is sufficient. This article, which contains simulations of life annuities based on income levels and citizens' life expectancies that are relevant for EU countries, is devoted to examining the aforementioned issue.

Keywords: MTPL insurance; personal injuries; annuities; technical provisions; minimum coverage; motor insurance; third party liability; insurance protection; minimum guaranteed sum; simulation; life annuities; income level; life expectancy; EU countries; European Union.

DOI: 10.1504/IJRAM.2016.074439

International Journal of Risk Assessment and Management, 2016 Vol.19 No.1/2, pp.125 - 141

Received: 21 Mar 2014
Accepted: 30 Oct 2014
Published online: 30 Jan 2016 *

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