Can a motor liability insurer recover compensation for non-pecuniary harm from the driver at fault?

Under third-party liability insurance, the insurer may pay compensation for non-pecuniary harm resulting from the actions of the driver at fault. Such harm usually includes various injuries or suffering, such as pain, physical suffering, temporary or permanent incapacity for work, emotional distress and changes in the injured person’s mental state.

The insurer may compensate injured persons for such non-pecuniary harm in accordance with the terms and limits set out in the insurance policy and with the Insurance Code. In some cases, however, compensation for non-pecuniary harm may be limited or subject to specific exclusions set out in the policy or provided for by law.

It is therefore important to examine the particular policy and consult a lawyer practising in insurance or tort law to understand the specific rights and obligations of both the insurer and the driver involved in the accident.