1 February is Car Insurance Day which was set up to raise awareness of the importance of vehicle insurance. At the end of Q3 2023, 27.7 million Poles had a third party only insurance policy and nearly 7.3 million – a comprehensive autocasco (AC) insurance policy. Motor insurance covers the owners of vehicles involved in road incidents, their drivers, passengers and pedestrians. Thanks to these policies, we also promote safe driving. On this day, the Polish Chamber of Insurance, together with the Police, reminds you that road safety depends to a large extent on us.
Two of the most popular types of motor insurance are third party only insurance and comprehensive autocasco (AC) insurance. The first one is mandatory and covers damage caused by the owner of the vehicle to other persons (both damage to property and damage related to their life and health). The second one is voluntary and covers damage to one’s own car, regardless of who caused the incident. Full coverage will also be guaranteed by roadside assistance policies, driver and passenger accident insurance, as well as insurance for luggage carried in the vehicle.
MOTOR INSURANCE IN POLAND
According to the Polish Chamber of Insurance, at the end of Q3 2023, the number of active mandatory third party only insurance policies was over 27.7 million. Between January and the end of September 2023, insurers adjusted nearly 826,000 claims under third party only insurance, while the average claim was approx. PLN 9,500. Over the period of 10 years, a total of PLN 86.6 billion was paid out and the number of claims amounted to nearly 11.6 million (nearly 3,700 claims per day). The sum of third party only insurance premiums for the last decade was PLN 133 billion, and the average premium for third party only insurance for motor vehicle owners in Poland amounted to PLN 510 (after Q3 2023).
In Poland, there is only one comprehensive autocasco insurance policy for 4 third party only insurance policies. After three quarters of 2023, the number of active contracts under this insurance was approx. 7.3 million and the number of claims adjusted – 590,000. Similarly, over the last 10 years, the total amount of premiums amounted to PLN 84 billion, of which almost PLN 52 billion was paid for claims. During this period, insurers helped drivers in nearly 8 million cases, which represents over 2,000 incidents per day on average. The average amount of a claim under AC amounted to over PLN 9,000.
(no) safety on Polish roads
PIU statistics show that as many as 96% of Polish drivers described their driving skills as good, while 82% said that when performing manoeuvres, they always assess the traffic situation faultlessly. At the same time, more than half of the respondents (52%) said it was possible to drive fast and safely, while 53% felt that experienced drivers could drive at high speeds without causing accidents.
– Accidents and collisions have a number of often tragic consequences, of which Poles are well aware. According to the study by the Polish Chamber of Insurance titled ‘Risk Map of Poles’ of 2022, almost 70% of respondents are afraid of a car accident, and more than 50% consider it probable in their lives. This risk has invariably appeared in the three editions of the study in the list of top 10 concerns we have. However, we have the greatest impact on those concerns – a lot depends on our behaviour on the road. Recklessness and overconfidence are no help at all – says Jan Grzegorz Prądzyński, President of the PIU Management Board.
– The number of accidents in Poland has been decreasing for several years. This is due to several factors, including more severe penalties for serious misconduct and higher sanctions for repeat offenders, but also technology – cars are increasingly safer. We see an enormous improvement, but let us not put an end to our efforts to make accident statistics even better – adds Detective Chief Inspector Robert Opas from the Road Traffic Office of the General Police Headquarters.
The report of the Road Traffic Office of the General Police Headquarters covering 2022 refers to more than 21,300 road accidents, with almost 1,900 fatalities and more than 24,700 injured.
real bump – digital statement
Work is underway to provide drivers with additional facilities for describing collisions. Digital confirmation of a traffic incident functionality in the form of an electronic version of the joint statement on the traffic incident will be added to the mObywatel application. This will facilitate the exchange of data between the participants of the incident. The solution is currently being developed by the Centre for Information Technology (COI), the Polish Chamber of Insurance, representatives of insurance companies and the Insurance Guarantee Fund. More and more Poles use electronic versions of documents and the mObywatel application, which favours the creation of additional functionalities and increases the chances of bringing them into general use.
– A digital world requires digital solutions. We want the application to be convenient and functional for the participants of the incident. It will make reporting a claim even simpler. Drivers will have a ready-made digital document which they will be able to quickly provide to the insurer. This will trigger claim adjustment so that drivers can quickly benefit from professional assistance. Let us remember, however, that regardless of the available solutions, we must first help any injured persons and minimise the risk of further collisions – says the President of the Polish Chamber of Insurance.
Autocasco just as important
Other risk categories are vehicle damage or theft. According to the Police, more than 10,000 thefts were detected in 2023, i.e. an increase of almost 36% compared to the previous year.
– The number of contracts is growing, and so is the awareness of Poles that it’s worth protecting their property, especially as cars are becoming ever more expensive. In recent years, the amount of damage related to violent weather, such as flash floods and gales, has increased – says Jan Grzegorz Prądzyński.
Unexpected events, unforeseen costs
The examples of road incidents collected by PIU indicate best why it is worth having motor insurance. Last year, a driver overtaking another vehicle collided head-on with a combine harvester causing its total loss claim. The compensation paid out to the injured party under the third party only insurance policy amounted to more than PLN 1 million, while the premium paid by the perpetrator for annual coverage under third party only insurance amounted to slightly more than PLN 1,000. Another interesting example is an incident in which a driver, while driving a car, was startled by a person dressed up as a clown and drove into a ditch. He was paid compensation in the amount of almost PLN 25,000 under the comprehensive autocasco (AC) insurance. The premium for the comprehensive autocasco (AC) insurance was approx. PLN 1,100 per year.
Much work still needs to be done on road traffic safety
The decreases in the number of accidents, fatalities and injured are undoubtedly welcome. However, we are still far from seeing the ‘zero vision’ that Poland should strive for, together with other European countries. Road traffic safety can be improved through numerous initiatives and legislative changes that have been implemented in recent years. The Polish Chamber of Insurance, as one of many institutions, has advocated for their implementation. An example of the changes is the increase in the amount of fines and the linking of penalty points to the amount of third party only insurance premiums, which entered into force in mid-2022. Other examples include: the introduction of provisions to increase pedestrian safety, the tightening of penalties for the most severe road misconduct, and the introduction of an obligation to maintain a distance between vehicles on motorways and expressways.
