Premises for an optimal model of managing the burden of financial losses stemming from damage to road infrastructure

Ewa Bagińska,Mateusz Kosmol,K Jamroz,J Żukowska,A Romanowska

doi:10.1051/matecconf/201823101001

Abstract

The empirical analysis of the distribution of risk related to the repair or replacement of road safety devices in existing performance-based maintenance contracts and the analysis of claims adjustment procedures indicate a certain imbalance in risk distribution between the road administrator and the entrepreneurs who have concluded road maintenance contracts, in particular performance based contracts. Relevant legal rules allow for a different, fairer distribution of the risk of suffering repair costs in certain damage scenarios. Insurance policy with a wide coverage of both property and liability risks appears as an optimal way of managing risks of losses to road infrastructure. Both contracting parties have an interest in obtaining first party insurance in the discussed field, although in practice it can be economical only to the General Directorate for National Roads and Motorways (GDDKiA). The law provides parties who suffered loss with a direct action against a traffic liability insurer of the wrongdoer who caused the damage.

Highlights

The paper discuses legal grounds and scope of the financial coverage of damage caused by road users to road safety devices
In certain cases the cost of the repair can be spread onto the persons legally liable for the damage or/and on the insurers liable to indemnify the loss under an insurance policy
Presently a small part of the financial losses due to the damage to road safety devices is already compensated under the property insurance policy taken by the Polish central governmental agency responsible for public roads, namely the General Directorate for National Roads and Motorways (GDDKiA), we recognize that an insurance protection should be better developed with respect to the discussed losses

Summary

Introduction

The paper discuses legal grounds and scope of the financial coverage of damage caused by road users to road safety devices. The aim of the research is to suggest a more enhanced management of the burden of compensating losses stemming from damage to road infrastructure devices and the process of the indemnification of such losses. To this end, the role of insurance coverage is examined. In Austria, Germany and Switzerland road safety devices are not insured under first-party policy insurance In those countries the model of responsibility of the road owner or administrator for damage (Selbstversicherungsgrundsatz, Selbstfinanzierung) was adopted. ‘optimal’ in the legal sense means a fair and just distribution of parties’ rights and duties

Managing the burden of financial losses through liability rules

Managing risks of losses to road infrastructure through insurance

Findings

Conclusions