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Business & Economics

ANALYSIS OF THE PROBLEM OF DETERMINING LOSS OF INCOME AND SOURCES FOR THEIR FINANCING. THE CASE OF PERSONAL INJURIES CAUSED IN TRAFFIC ACCIDENTS
Ewa Poprawska, Anna Jedrzychowska

ABSTRACT. The article aims at analysing the coverage of personal injury claims. First of all, issues related with personal injury claims, market practices and regulations are presented. Secondly, the proposal of the proper way of calculating the present value of the benefit for the loss of income is provided. Further on, the results of calculations are presented and the following issues are discussed: the size of present value of annuity for the loss of income in the European countries (including the differences in earnings and life expectancy); whether the minimum amounts of cover in the MTPL insurance cover these amounts, the problem of cross-border damages. Finally, the authors summarise the current situation and set some postulates which can help to increase the financial security of road users in terms of compensation for personal injuries. The article presents the main findings of the authors' research in the area  .

KEYWORDS: MTPL insurance, personal injuries, value of pensions, annuities .

JEL classification: G22, G28, J17.