Indemnity Account

The contractual system of the compulsory motor liability insurance was introduced on 1st July 1991 . The respective law (Gov. Dec. No. 58/1991. IV. 13.) assigned the Association of the Hungarian Insurance Companies to handle an isolated account of funds for those losses, that – in spite of the obligation to conclude an insurance contract – were caused by an uninsured or under some circumstances, by an unknown user of a vehicle, and to indemnify the respective claimants. From 1st July 1991 until 31st December 1995, in accordance with the insurers having started writing compulsory motor liability insurance, this duty of the Association (MABISZ) was administered via the Hungaria Insurance Company. In line with a further decision of the member companies, the Motor Claims Office of the Association of Hungarian Insurance Companies (Hungarian abbreviation: MABISZ GKI) was set up, starting its activity on 1st January 1996. One of the main tasks of this organization would be the settlement of the above-mentioned losses.

Although the wording of the law has been repeatedly amended, and as a consequence, the addressee of the obligation to fulfill this task has been changed, our office is steadily conducting this activity. Currently we are acting as the trustee of the Indemnity Account stipulated by the Gov. Dec. No. 171/2000 (X. 13.).

When conducting our activities, we are closely cooperating with the member companies writing motor insurance risks. We may rely to a great extent on their preparation work relating claims handling. You may find some useful information about this topic on the front page under General information regarding claim reporting.

When should the trustee of the Indemnity Account settle the loss of a claimant?

The amount of indemnity to be paid by the Indemnity Account

In case the loss was caused by the use of a motor vehicle of an uninsured user who had been obliged to conclude an insurance contract, the claimant is entitled to the same amount of indemnity – up to the coverage limits set by the law – as if any of the liability insurers would have to settle the loss on the basis of a valid insurance contract.

When the losses are caused by unknown users, the trustee of the Indemnity Account is not obliged to indemnify the claimant in the cases detailed below:

Therefore, no indemnity shall be paid for

The trustee of the Indemnity Account shall not settle losses suffered by foreign claimants, unless at the time of accident, Hungarian citizens could have expected an indemnity in similar cases in the country of the claimant. (reciprocity)

* The Indemnity Account corresponds to the institution of a Guarantee Fund in other countries