ESTONIA: a new type of insurance dispute arose last year due to rapid inflation

16 February 2023 —
According to the Estonian Traffic Insurance Fund (LKF), insurance mediators resolved 293 disputes last year, 171 of which ended with an agreement between insurance companies and clients. The number of home insurance, comprehensive insurance and travel insurance disputes increased the most. The largest disputed amount was EUR 176,500 and the smallest was EUR 90.

According to LKF's board member Lauri Potsepa, a new type of insurance dispute arose last year due to rapid inflation. In home insurance delays in repair, after compensation was paid, caused disputes between insurers and clients, as prices for material and labor increase and home restoration becomes more expensive. To avoid such disputes, Lauri Potsepa suggested starting home repairs without delay. "Insurers do not have to bear the risk of the restoration cost increase if a customer unnecessarily postpones conclusion of a repair contract", he said.

In 2022, 379 reconciliation statements were submitted, which is 26% more than in 2021. 58% of them ended with an agreement. 75% of 134 traffic insurance settlements ended with an agreement as well. Of the 159 completed statements for other insurance services, an agreement was reached in 44% of cases. The average traffic insurance dispute amount was over EUR 5,240 last year, and the average dispute amount for other insurance services was EUR 11,000.

According to Lauri Riida, member of the board of Inges Kindlustus, vehicle repairs also became more expensive last year. "The average traffic insurance loss was EUR 2,122, increasing by EUR 163 over the year. We recommend that customers fill out a digital report of a traffic accident online immediately after the accident, to avoid later disputes about the circumstances", Lauri Riida said.