INTERNATIONAL EXPERIENCE IN GUARANTEEING OF INSURANCE INDEMNITIES UNDER THE MOTOR INSURANCE CONTRACTS

Insurance as a kind of business activity is accompanied by certain risks which lead at times to bankruptcies of the business entities. The problem of insurers’ insolvency is particularly acute for motor insurance ? one of the most widespread type of insurance. The mechanism providing guarantees of insurance indemnities in case of recognition the insurer as insolvent is functioning of insurance guarantee funds. The insurance guarantee funds are represented in the vast majority of the countries in compulsory motor third party liability, less often, in voluntary motor insurance CASCO. Despite some organizational universality of the guarantee funds, the common principles of their establishment and the basis of their functioning vary in different countries. The functioning of the international systems of motor insurance brings guarantee mechanism of insurance indemnities at a totally new level. At the present stage of motor insurance development in Ukraine the important issue is to provide guarantee mechanism in voluntary motor insurance CASCO as well as to improve functioning of insurance guarantee fund in compulsory motor third party liability insurance. Based on the positive international experience of guarantee funds functioning in motor insurance, the demands should be strengthened to the insurers undertaking this type of insurance in Ukraine. Strengthening of the insurers’ financial stability will be base for implementation of the European standards in motor insurance and will facilitate the integration of Ukrainian insurance market into western financial markets.