Accidents involving uninsured or unidentified vehicles drivers, resulting in a headache for the Motor Insurance Fund in Cyprus.

According to data from the fund during this year they paid as compensation for € 2.561.000 accidents involving uninsured vehicles and other € 597.000 for unknown drivers.

 Moreover, since the beginning of 2011 there has so far submitted to the Fund’s total 602 claims of which 454 were uninsured vehicles and 148 drivers unknown.

From these figures, around 40% are cases of foreigners and the remaining 60% are groups of people, young and elderly.  Mr Charalambides attributed the upward trend in both the economic crisis and non-severe punishment provision in the legislation.

Specifically, he said, because of the economic crisis many drivers do not  renew their vehicle, insurance so if you cause an accident you call the fund to pay compensation.

He also said that many drivers, because they know that the law is not strict, do not  renew or make new  insurance policies covering the vehicles.  “It is for the police to check if someone has renewed its security,” he said.

Under EU law all vehicles driving in member states must have at least third party liability insurance. It is obligatory for a vehicle owner to take out insurance against personal injury and material damage caused by their vehicle. This guarantee covers all the passengers in the vehicle including members of family.