In today's article, we will focus on the rules related to the payment of compensation due to injured parties related to the rental of a replacement vehicle in the event of a total loss.
In the event of a total loss, the injured party has the right to rent a replacement vehicle, which is necessary for daily operations until they can purchase a new vehicle. Supreme Court case law assumes that reasonable and economically justified expenses for renting a replacement vehicle relate to the actual period during which the injured party is deprived of the use of the vehicle damaged in the accident.
In accordance with the judgment of the Supreme Court of 22 November 2023, file ref. III CZP 76/13, "In light of the principles of life experience, purchasing a new vehicle requires undertaking certain organizational activities within a certain period of time, taking into account the injured party's obligation to take steps to prevent the extent of the damage from increasing. Determining the time necessary to purchase a new vehicle is objective and is independent of the injured party's possession of financial resources – including those derived from the payment of compensation to the injured party covering the difference in the value of the vehicle before and after the damaging event – for the purchase of a new vehicle. The date of notification of the injured party on the method of settling the loss by paying the difference between the value of the vehicle before and after the damaging event is crucial for determining the time necessary to purchase a vehicle. For these reasons, the payment of compensation by the insurer covering the difference in the value of the damaged vehicle before and after the , if it occurred before the time necessary for the injured party to purchase a new vehicle had elapsed .
In the aforementioned judgment, the Supreme Court emphasized that regardless of the method of redressing the damage provided for in Article 363 § 1 of the Civil Code, the compensation paid should ensure that the injured party is in the same financial situation as if the damage had not occurred. When determining the reasonable period for renting a replacement vehicle, not only the date of payment of compensation by the insurer is crucial, but also the time when additional funds corresponding to the value of the vehicle's remains after the accident are obtained. Only when the injured party receives the full amount of compensation can they purchase a new vehicle. Therefore, a period of several "organizational" days, covering the time of using the replacement vehicle after the insurer pays compensation, also has an adequate causal relationship.
For more information, please contact us. We will assist you at every stage of the process to obtain the compensation you deserve.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of September 10, 2024
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