Deficiencies in the Regulation of Legal Expenses Insurance in the Legislation of the Republic of Serbia

Abstract

This paper is dedicated to analysis of legal expenses insurance, its regulation in the Serbian legislation and importance for the right to access the court. Both Serbian legislation and comparative legal analysis signalize several shortcomings in the approach of the Serbian legislator. The first is the lack of a clear definition of this insurance, which further implies the ambiguity regarding the exact definition of the insured event and the risk insured. Another problem is the lack of rules on conflict of interests between the insurer and the policyholders which arises from legal expenses insurance. The author gives proposals for overcoming these shortcomings, by taking into account the EU regulation. Conclusion is dedicated to refutations of assertations that legal expenses insurance inevitably leads to an overloaded judicial system, which has been marked as one of its biggest deficiencies.