Whoever causes damage to another is obliged to compensate it, unless they prove that the damage arose without their fault. For damage caused by things or activities that involve increased danger, liability applies regardless of fault. The injured party is entitled to compensation both for ordinary damage and for lost profit.
Types of damage
Material damage covers actual damage, for example damaged property, and lost profit, that is, gain that could reasonably have been expected. In the case of bodily injury or impaired health, the costs of treatment and other necessary costs are compensated, as well as earnings lost because of incapacity for work. If an injured person loses earnings because of full or partial incapacity for work, or their needs are permanently increased, a monetary annuity can also be awarded. Non-material damage covers, among other things, physical and mental pain suffered (for example because of reduced life activity, disfigurement or the death of a close person) and fear. The court awards fair monetary compensation if the circumstances of the case, and especially the intensity and duration of the pain and fear, justify it.
Traffic accidents and insurance
When the damage arose in a traffic accident, the claim for compensation is usually submitted to the insurer of the liable person. The insurer may offer a payment, but the offer does not have to be accepted. If no agreement is reached, court proceedings can be started. In liability insurance, the injured party can claim compensation directly from the insurer, up to the amount of its obligation.
Time limits
A claim for compensation of damage becomes time-barred three years after the injured party learned of the damage and of the person who caused it, and in any case five years after the damage occurred. If the damage was caused by a criminal offence, longer periods may apply, tied to the limitation period for criminal prosecution. In the case of breach of a contractual obligation, the limitation period of the obligation itself applies. Because the statute of limitations can make collection impossible, it is useful to check the deadline at the start.
Shared responsibility
An injured party who contributed to the damage arising, or to it being greater than it would otherwise have been, is entitled only to a proportionally reduced compensation.
How the proceedings run
- Collecting documents about the event and the damage.
- A claim for compensation to the liable person or the insurer.
- Negotiations, that is, considering the offer.
- A lawsuit, if no agreement is reached. In disputes over compensation for injury, a medical expert is usually appointed.
What is useful to prepare
- the police accident report or other proof of the event, photographs, details of the vehicles and the insurance policy
- medical documentation and treatment bills
- proof of earnings, if they were lost
- correspondence with the insurer and any offer
Common questions
Note: This text is general information and is not legal advice for a specific case. It reflects the regulations at the time of the page's last update (October 2026). Assessing a particular situation requires reviewing the documents and circumstances of the case.
Related areas of law
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