Subsidiary Capital for MTPL a New Model for its Financing After the Law 4092-2012
By the sole article of Law 4147/1961, Greece has ratified the European Convention of Strasbourg on compulsory insurance against
civil liability in respect of motor vehicles, MTPL Model, dated 20 April 1959. By the aforesaid ratification, the Convention has become an integral part
of the national law with increased typical force, since the instrument of ratification by the Greek Parliament, grants it the power to
prevail over any opposite provision of national laws, either current or future (article 28 § 1 of the Constitution). From article 9 of the
said European Convention, derives the obligation of Greece (and each of the Contracting Parties) to establish an Insurance Guarantee
Fund or to make other equivalent arrangements, in order to compensate injured parties for damages caused in such circumstances, that
civil liability is incurred, in case the vehicle has not been insured or the person liable has not been identified. In addition, insurance must
include coverage for damage caused to persons and property in the national territory, with the exception of damage to the insured
vehicle and to property carried by it, according to article 3 of the Annex I of the Convention.
For this reason, Greece has established the Auxiliary Fund provided in articles 16-25 of the codified Law 489/1976, which is in charge
with the payment of indemnities to motor accident victims (article 19). More specifically, the Subsidiary Capital indemnifies the injured
parties for death, bodily injuries and damages to property.
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