KOSOVO: 20% of national vehicles fleet was uninsured in 2019

16 April 2020 — Cosmin CONCEATU
According to the Central Bank of Kosovo (CBK) Governor, Fehmi Mehmeti, between 40,000 and 60,000 uninsured vehicles circulated in Kosovo during 2019. This number represented roughly 20% of the total national fleet of vehicles.

CBK figures for 2019 show that local insurers paid EUR 48.0 million insurance compensations. Besides this amount, about EUR 7.1 million were paid by CBK (FY2018: EUR 5.4 million), of which EUR 4.4 million represents the amount paid from the Compensation Fund to uninsured road accidents. Mehmeti notes that the uninsured fleet problem was a key factor which led to the 2019 annual loss of EUR 2.8 million at market level.

Compared to other neighboring countries, Kosovo uninsured vehicles ratio was considerably higher last year. In 2019, Albania's uninsured fleet was 15%, Montenegro 5%, Serbia 2%, Croatia 1.6% and Slovenia 0.3%.

Mehmeti emphasized that this problem is hindering the Kosovo's adherence to the Green Card system. The measures took in the past, like the law on compulsory liability insurance, the establishment of Kosovo Insurance Bureau and the foundation of the Guarantee Fund, are completely futile as long as the problem of uninsured vehicles persists. However, Mehmeti added that CBK continues to address this problem to the competent institutions in order to fix it.

Fehmi Mehmeti stated:

"As we have informed before, the CBK has sent a letter to the relevant institutions in order to resolve the issue of uninsured vehicles and has continuously committed to immediate treatment of this issue. (...) CBK is waiting for concrete actions by the relevant institutions for the treatment of uninsured vehicles. At the same time, the CBK is evaluating the current legal framework and in full compliance with applicable law, through bylaws to find an adequate solution in order to reduce the number of these vehicles, which in addition to endangering the everyday lives of the citizens and provoking financial instability to insurance companies, are also causing damage to the state budget of Kosovo."

Source: shs-ks.com

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