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Legislation and conditions

Under the Motor Liability Insurance Act, claims for injuries suffered in traffic accidents are to be settled in three months. In certain cases benefit payments to the injured may be delayed by investigations of whether the injury qualifies for indemnity. Such delays may result from investigation of the injured's potential contributory negligence, effects of alcohol, etc. But even in these cases the injured receives compensation for the injury without delay, because the Social Insurance Institution pays the compensation (i.e. daily allowance in most cases) on presentation of the insurer's statement to the effect that the benefit payment has been delayed. Once the investigation is completed, the Social Insurance Institution is entitled to claim the compensation paid out by it from the motor insurer concerned.

In cases of delayed compensations for injuries the insurance company is obliged to pay an increase for the period of delay.

The time limit regarding settlement of claims for damage to property is one month. Penalty interest is paid on delayed compensation in compliance with the Interest Rate Act.

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