How do I file a claim for compensation?

What is a claim for compensation and when do you have the right to make one?

A claim for compensation is a claim you make against the person who caused the damage or their insurer. The Czech legal system distinguishes between property damage, such as damage to a vehicle, destroyed property or financial loss, and non-property damage, such as pain and suffering, psychological damage or permanent consequences. In order for a claim to go through, you generally have to prove the cause of the damage/injury, who is responsible for it and causation. In addition, for some types of liability, a special statutory scheme is crucial (or vice versa) – it is not always necessary to prove fault.

People make claims for compensation in many common situations. Typically these are road traffic accidents, where the most common claim is for damage to a vehicle, as well as accidents on pavements, medical malpractice, damage caused by animals, employee misconduct or situations where things are damaged in the course of providing services. A claim can even be made against the state if it has caused damage by an unlawful decision or an erroneous official procedure.

How to make a claim for compensation

Making a successful claim starts with careful evidence gathering. The sooner you do this, the better. Photographs, witness statements, medical reports, invoices, reports or expert reports serve as the basis without which a claim for compensation can hardly do without. A typical example is our client whose furniture was damaged by a moving company. Initially, the company refused any compensation, but after submitting complete documentation and an expert report, it eventually paid the damage without resistance.

Once you have everything in place, you need to determine to whom to address the claim. In the case of traffic accidents, this is usually the at-fault party’s insurance company, in employment relationships it is the employer, and in other situations it is the person who caused the damage. For claims against the state, the application is made to the so-called competent authority – i.e. depending on which authority caused the damage (e.g. in the case of courts, typically the Ministry of Justice, sometimes another ministry/official authority).

The application itself must be clearly formulated and factual. It should describe exactly how the damage was caused, why the other party is liable and what your claim is. It should include a detailed quantification of the damage, a specific amount and all the evidence. The letter should conclude by stating by when you expect the claim to be settled, usually within 30 days.

Once the claim is filed, the settlement process begins, which often involves communication with the insurance company. The insurance company may reduce the amount or deny the claim, but that does not mean you are wrong. Insurance companies commonly argue, for example, that there is insufficient evidence or that the victim is allegedly contributorily liable. In practice, however, a properly worded objection or legal argument is often enough to make the insurer more sympathetic. We will be happy to help you in such a situation.

If, even after negotiations with the insurer or the at-fault party, no agreement is reached, it is possible to pursue the claim in court. However, most disputes are settled out of court, especially when the client is represented by a solicitor – the other party knows that the claim is serious and that they are less likely to succeed if they choose to drag the dispute out.

The most common reason for rejecting a claim for compensation is not that the claim is unjustified, but that the claim is insufficiently substantiated.

Application for compensation for damage to the vehicle

Immediate documentation is most important in car accidents. Filling out the accident report, taking photographs and finding out information about the at-fault party and their insurance company will greatly simplify the subsequent claim. Insurance companies often assess damages very economically and tend to pay only a portion of the costs. A typical example is depreciation or the attempt to reimburse only part of the repair. In one case, the insurer offered our client only 60% of the actual damage, citing the age of the vehicle. After providing an expert report and a legal opinion, the insurance company ended up paying not only the full damage but also the cost of hiring a replacement vehicle.

It is important to know when claiming compensation for damage to a vehicle that the claim is not just about the repair itself. You can also claim for towing, parking fees, lost profits and, if you have suffered injuries, pain and suffering and compensation for loss of amenity.

Claiming compensation for personal injury

Personal injury is one of the most complex claims. It is not just about pain and suffering, but also about medical expenses, rehabilitation, loss of earnings or permanent consequences. In the case of personal injury, compensation is determined in accordance with Section 2958 of the Civil Code. In practice, the calculation of pain and suffering from social impairment is based on the methodology of the Supreme Court and medical reports. We therefore recommend consulting a lawyer in these cases as well – the differences between the insurance company’s initial proposal and the amount actually awarded can be significant.

Why people often lose their claims

Many victims make the same mistakes over and over again. Most often they make a claim without sufficient evidence or fail to state the exact amount of compensation, which insurers immediately take advantage of.

Another common mistake is that they settle for an initial denial without defending themselves, or that they file their claims late, after the statute of limitations has expired.

Problems can also arise when the injured person has no idea what their claim actually is – for example, many people don’t know that they can also claim for lost profits, medical costs or psychological harm. This is also why it pays to have an attorney on hand.

When is it time to call a lawyer

Generally speaking, the higher the damages, the more sense it makes to get legal help. An attorney can not only quantify your claim correctly, but also support it professionally. In cases where the insurance company refuses to pay or proposes a low amount, legal representation is often crucial. This is especially true in vehicle damage claims, personal injury claims, disputes with the state, or situations that are more legally complex. In practice, clients represented by an attorney often receive several times more compensation than the insurance company originally offered.

If you choose to leave the entire process to us, we will take over the complete legal agenda. We will first analyse your case and suggest what claims can be made. We will then prepare a professional claim for compensation, provide expert reports, take over communication with the insurance company and the at-fault party, and negotiate on your behalf until the claim is resolved to your satisfaction. If necessary, we will also pursue the claim in court.

Every situation is different, but they have one thing in common: the right legal reasoning and thorough preparation can decide tens or hundreds of thousands of dollars.

Summary

A properly filed claim for compensation is crucial to successfully obtaining compensation, whether it is for damage to a vehicle, personal injury or other pecuniary or non-pecuniary damage. The claim must include an accurate description of the incident, proof of the damage, quantification of the claim and all relevant evidence. The filing is followed by communication with the insurance company or the at-fault party, who may reduce or deny the claim, but this is not final and can be effectively defended. For a vehicle damage claim, good documentation of the accident and knowledge of the claims that can be made, from repairs to a replacement vehicle or lost earnings, is essential. For personal injury, expert assessment and correct legal quantification of the various components of the claim is important. The most common errors are lack of evidence, inaccurate amounts or late filing of a claim. In more complex cases, or if the insurance company is reluctant, it is worth using a solicitor who can support the claim, negotiate a higher amount and, if necessary, pursue it in court.