Rule · CBK · 27 Jul 2012
The Board of the Central Bank of Kosovo issued this regulation to establish the funding, maintenance, and operational framework for the Compensation Fund administered by the Kosovo Insurance Bureau. Licensed insurers must make quarterly contributions based on motor liability premiums and maintain actuarially calculated reserves to cover domestic damages, with funds held in designated commercial banks. The regulation mandates strict reporting, allows for additional financing when reserves are insufficient, and imposes punitive measures for non-compliance, taking effect on 1 August 2012.
Pursuant to Article 35, paragraph 1.1 of the Law No.03/L-209 on the Central Bank of the Republic of Kosovo (Official Gazette of the Republic of Kosovo no.77/16, August 2010), and according to Articles 42 and 32 of the Law No. 04/L-018 on Compulsory Motor Liability Insurance (Official Gazette of the Republic of Kosovo/ no. 4/14 July 2011), the Board of the Central Bank of the Republic of Kosovo, at the meeting held on 27 July 2012, approved:
REGULATION
ON COMPENSATION FUND OF KOSOVO INSURANCE BUREAU
Article 1
Scope
This regulation sets out the method of funding, maintaining and use of the Compensation Fund that is administered by Kosovo Insurance Bureau.
Article 2
Definitions
Terms used in this regulation shall have the same meaning as defined by the Law No. 04/L-018 on Compulsory Motor Liability Insurance.
Article 3
Purpose
The Compensation Fund is intended for the payment of damages in the territory of the Republic of Kosovo, pursuant to provisions of the Articles 18, 19, 20, 21, and 22 of the Law No. 04/L-018 on Compulsory Motor Liability Insurance and shall not be used for other purposes.
Article 4
Financimi
2
1.1 Regular contributions of licensed insurers for exercising Compulsory Motor Liability
Insurance activities. Insurers shall contribute financially to the Compensation Fund on quarterly basis, commensurate with their underwritten premiums from the sale of motor liability insurance during the previous quarter;
1.2 reimbursement collections from regress procedures;
1.3 additional contributions by the insurers, where the projected funds results to be insufficient
to conduct the payment according to paragraph 1 of this Article;
1.4 reimbursements from uninsured motor vehicles owners to whom the Compensation Fund
paid a compensation;
1.5 revenues from the investment of the Compensation Fund assets;
1.6 other resources, which are not prohibited by law.
2. KIB shall inform and report to CBK on the amount of contributions and compliance of
obligations towards the Compensation Fund by each insurer.
Article 5
Calculation of the compensation fund by Bureau
3
Article 6
Additional financing
With the proposal of the General Assembly of the Members of Bureau and upon the approval by CBK, the insurers shall make additional financing to the Compensation Fund in cases when this fund results to be insufficient to carry out the payments. The addition of the Compensation Fund is calculated in the same manner as defined in Article 4.1.1.
Article 7
Maintenance of the Compensation Fund account
4
Article 10
Completion of financial year of the Compensation Fund
1. At the end of every financial period (31 December) it is drafted the balance sheet of the
Compensation Fund and the statement of its contribution and payment.
2. At the end of every financial year (financial situation same as 31 December), the
Compensation Fund shall be theoriticaly closed. The balances in the Compensation Fund account on 31 December of every year shall be registered in the balance of Bureau as financial liabilities towards the insurers in report with the percentages contributed in the Compensation Fund for the financial year in question. At the beginning of the following financial year the Bureau will recognize these liabilities in the balance as part of contribution of insurers in the Compensation Fund for this year calculated in report with the percentage of contribution which belongs to the insurer for the current financial year.
Article 11
Punitive measures
1. If the insurers fail to apply the liabilities envisaged with this Regulation, the Bureau informs
CBK for failure to apply the liabilities and CBK will impose punitive measures envisaged with
Article 37 of the Law on Compulsory Motor Liability Insurance.
2. If the Bureau fails to apply the provisions of this Regulation, CBK will impose punitive
measures envisaged with Article 38 of the Law on Compulsory Motor Liability Insurance.
Article 12
Entry into force
This Regulation shall enter in force on 1 August 2012.
Gazmend Luboteni
Chairman of the Board of Central Bank
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“Pursuant to Article 35, paragraph 1.1 of the Law No.03/L-209 on the Central Bank of the Republic of Kosovo”
“according to Articles 42 and 32 of the Law No. 04/L-018 on Compulsory Motor Liability Insurance”
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Source: Central Bank of the Republic of Kosovo — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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