Insurance Guarantee Fund – what is it?

Posted: September 9th, 2013 | Author: | Money, Travel

Probably a lot of people have heard of that institution, but unfortunately a lot of surveys and studies show that they do not really know what it is and how we can use it. So let’s talk about it.

Luke Redmond / photo on flickr

Luke Redmond / photo on flickr

In short, it is a fund that will pay us compensation if we suppose to get it, and for some reason we cannot receive it. A prime example is the situation when someone causes a collision on the road and drives away from the scene, or you will not have a valid third party liability insurance. Theoretically, no one is obligated to pay the victim for the damage. In practice, this is what is  covered by the Insurance Guarantee Fund.

In addition, if your insurance company bankrupts, we may apply for a refund of our funds. This is not the full amount, but only 50% and not more than the equivalent of 30,000 Euros. In the case of mandatory liability premiums will be 100% covered. IGF also allows us to see if and where the participant has a valid insurance policy collision liability. At the same time the office is authorized to control  over insurance policy.

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