The EU Court determined when the right to claim compensation after a traffic accident does not grant victim status
A company that purchased the right to claim insurance compensation from a victim in a traffic accident does not acquire the status of a victim solely by concluding an assignment contract. At the same time, the legislation of EU member states may allow such companies to go to court in their own name to recover compensation. This conclusion was reached by the Court of the European Union in case C-277/25 Helpfind Funding and others.
Why the case was referred to the EU Court
In Poland, many car owners who suffered in traffic accidents received insurance payments from the insurers of the at-fault parties. Considering the amounts received insufficient to fully compensate for property damage, some victims transferred their claim rights for a fee to specialized companies engaged in debt collection.
After that, such companies filed lawsuits against insurance companies demanding additional insurance compensation.
The Polish court handling these disputes referred to the EU Court to clarify whether the EU Directive on motor vehicle liability insurance contradicts the assignment of the right to insurance compensation under an assignment contract.
What the EU Court decided
The Court of the European Union responded that the mentioned directive does not prohibit the assignment of the right to claim to another person.
At the same time, the court emphasized that the purpose of the directive is to protect victims of traffic accidents and to ensure mandatory motor vehicle liability insurance for damage caused by vehicles. Therefore, the protection provided by it applies only to persons who have the status of victims within the meaning of this directive.
The court noted that a company that acquired the right to claim insurance compensation cannot be considered a victim because the basis for its claims is not the national civil liability legislation but the assignment contract concluded with the person who suffered property damage as a result of the traffic accident.
Can such companies go to court
The decision also emphasizes that the directive does not regulate the issue of assignment of claims and does not define the procedural right of persons to bring claims before national courts to recover such claims.
That is why it does not prevent national legislation that allows the transfer of rights to insurance compensation to other persons and grants their assignees the right to go to court in their own name and at their own expense to recover the respective amounts.
Thus, the EU Court confirmed that companies that purchased the right to claim after a traffic accident can act within the procedures provided by national legislation, but the mere fact of acquiring such a right does not make them victims within the meaning of European Union law.
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