Guarantee fund - what it is and in what cases it is used

Every day, we witness an increasing number of road traffic accidents. Whether minor or severe, nearly every incident results in material damages. For this reason, the mandatory Third-Party Liability Insurance (TPL) was introduced, requiring all vehicle owners to pay it annually.

This insurance serves four main functions: compensatory, security, social, and protective. The primary purpose of Third-Party Liability Insurance is centered on the first two functions, ensuring that damages resulting from a traffic accident are covered by the responsible party and their insurer.

The Link Between the Guarantee Fund and TPL Insurance

We examine these key aspects of liability insurance because it is directly related to the Guarantee Fund. However, it is not uncommon for a driver involved in an accident to lack valid Third-Party Liability Insurance, either due to oversight or failure to renew it.

According to the Insurance Code, the Guarantee Fund provides compensation in cases where there is no active Third-Party Liability Insurance. This prevents situations where the accident’s perpetrator must cover the entire cost of damages out of pocket.

The law specifies particular cases where the Guarantee Fund's resources can be used. These funds are accumulated from entities outlined in the legislation.

It is important to note that all rental cars at SpeedyCars come with all required insurance policies!

Responsibilities of the Guarantee Fund

The Guarantee Fund is responsible for compensating damages caused by a vehicle involved in an accident that lacks Third-Party Liability Insurance.

Under the Insurance Code, it covers expenses for the affected party, including compensation, interest, and procedural costs.

Additionally, the fund ensures that policyholders receive coverage if an insurance company declares bankruptcy and is unable to fulfill its obligations.

Another key function of the fund is the establishment and management of an information center. This center provides details to accident victims regarding mandatory Third-Party Liability Insurance and the optional "Accident Insurance" policy for passengers.

The Guarantee Fund also maintains an electronic risk assessment and management system. This system is responsible for issuing policies for the two mandatory insurance types mentioned above.

How to Check If Your TPL Insurance Is Valid

No one is immune to road accidents, but regularly verifying your Third-Party Liability Insurance can help you avoid unforeseen issues. If you own multiple vehicles, remembering renewal dates can be difficult, so we recommend periodic checks.

The easiest way to do this is online, via the Guarantee Fund’s official website. You can check your policy status by entering at least one of the following details in their search tool:

• Vehicle registration number;
• Chassis (VIN) number;
• Insurance sticker number.

After entering the required information, you will receive an up-to-date verification of your insurance status.