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9 January 2018
AFSA Approves the 2018 Compensation Fund, a Solution for Payments Carried Forward Over Years
The Albanian Financial Supervisory Authority (AFSA) Board during the meeting of December 28th 2017 issued a decision regarding the 2018 Compensation Fund. Such decision taken by the Authority’s Board serves to the consumers’ interest protection to find a solution to the problem carried forward since 2001 with regard to arrears of the Compensation Fund. These claims regard accidents caused by uninsured or unidentified cars.
Pursuant to the estimates, the amount of the Compensation Fund for liabilities carried forward from the past years and those expected for 2018 amount at about ALL 1.8 billion, divided into:
Pursuant to the estimates, the amount of the Compensation Fund for liabilities carried forward from the past years and those expected for 2018 amount at about ALL 1.8 billion, divided into:
- ALL 1.25 billion in case of events arising since 2001 until 31.12.2013, including unpaid liabilities that are in the process of being handled or under a judicial process without a final court decision;
- ALL 418 million in case of events arising since 2014 until 31.12.2017, including unpaid liabilities that are being handled or under a judicial process without a final court decision, and
- not less than ALL 150 million for events that may occur during 2018.
AFSA Board orders the Albanian Insurance Bureau to follow the immediate payoffs procedure for the outstanding liabilities of the compensation practices subject to the Compensation Fund, for which the settlement process has been completed (enforced, by a final court decision approved, but not paid) in the total value of ALL 923 354 758 for insurance events arising since 01.01.2001 until 31.12.2017.
Moreover, in order to avoid the creation of a new debt, AFSA Board decided the establishment of a Compensation Fund for 2018, at a minimum value of ALL 895 203 094, divided into:
Moreover, in order to avoid the creation of a new debt, AFSA Board decided the establishment of a Compensation Fund for 2018, at a minimum value of ALL 895 203 094, divided into:
- ALL 745 203 094 for settlement of liabilities in case of events arising since 1 January 2001 until 31 December 2017 (which are in the process of being handled or under a judicial process without a final decision) and
- not less than ALL 150 million for events that may take place during 2018.
The decision grants the right to each citizen who in 2018 obtains a final court decision or approval by the insurance companies, to receive the payment within 2018.
As pursuant to many decisions taken during 2017, the Authority shall continue to focus on protecting consumer interests and considers the paying off the Compensation Funds liabilities as one of the key priorities of its activity in 2018, nevertheless such liabilities have been carried forward since 2001.
As pursuant to many decisions taken during 2017, the Authority shall continue to focus on protecting consumer interests and considers the paying off the Compensation Funds liabilities as one of the key priorities of its activity in 2018, nevertheless such liabilities have been carried forward since 2001.
