Compensation for damages and the rights associated with it represent a legal topic that every citizen of Serbia should be familiar with.
In this text, we will explain how compensation for damages works in Serbia, when you are entitled to it, how to protect your rights, and when it is wise to involve a lawyer. By reading this guide, you will gain practical information and a clear understanding of the steps you need to take to exercise your rights without unnecessary stress or complications.
What is compensation for damages and when are you entitled to it?
Compensation for damages is a legal remedy that allows a person who has suffered harm to seek monetary or other restitution from the responsible party in order to, as much as possible, be restored to the position they would have been in, if the damage did not occur.
In legal terms, damage can be:
- Material damage, which occurs when someone’s property decreases in value (e.g., car damage, loss of income) or when an increase in property is prevented (the so-called lost profit, such as profit lost due to a supplier’s breach of contract and delay in delivery); or
- Non-material damage, which occurs when a person suffers physical or psychological pain, fear, or emotional distress due to an infringement of honor, reputation, freedom, or personal rights.
This definition is based on the principles set out in the Law on Obligations, which is the primary law governing liability for damages. It is important to note that in Serbia there is no single, comprehensive law on compensation for damages. In addition to the Law on Obligations, there are special laws that regulate specific situations — we will discuss these in more detail later in the text.
The right to compensation for damages can be based on three grounds:
- Fault (subjective liability) – when the damage occurred as a result of someone’s intentional or negligent behavior.
- Liability without fault (objective liability) – when a person is held liable regardless of fault, usually due to engaging in a hazardous activity (e.g., keeping dangerous animals).
- Liability for the actions of others – when someone is responsible for the actions of third parties (e.g., parents for their minor children, or an employer for an employee within the scope of employment).
Based on all of the above, we can conclude that the right to compensation for damages arises when the following conditions are met: there is actual damage (material or non-material), the damage was caused by someone’s unlawful act, omission, or conduct, there is a clear causal link between the harmful act and the damage caused, and—in cases of subjective liability—there is fault.
What types of compensation for damages exist in Serbia?
Just as there are material and non-material damages, there are also compensation for material damages and compensation for non-material damages.
More about each of them follows below:
Compensation for material damage
Material damage includes any reduction in a person’s property that can be expressed in monetary terms. This means it refers to a specific, financially measurable loss suffered by someone as a result of another person’s act or omission.
In practice, material damage includes:
- Actual damage (ordinary damage) – a direct reduction of property value, such as car damage, destruction of items, medical expenses, repairs, and similar costs;
- Lost profit – income that the injured party would likely have earned if the harmful event had not occurred (for example, lost wages).
There are two basic ways to compensate material damage: natural restitution and monetary compensation.
Natural restitution (also known as restoration to the previous state) means that the injured party is actually compensated for what was lost — for example, by repairing the damaged item. The goal is to restore the injured party’s property situation, as much as possible, to its original state. This form of compensation is the fairest, as it directly removes the consequences of the harmful act. However, in practice, it is less common, since it is often not feasible (for example, when the item is completely destroyed).
Monetary compensation is a much more frequent form of compensation for material damage, in which case the liable party pays an amount corresponding to the market value of the damaged item or the extent of the loss suffered. The law stipulates that monetary compensation should be used only when natural restitution is not possible or would be meaningless, but in practice, payment in money is almost always used because it is simpler, faster, and often more realistic.
In any case, the main goal of compensation remains the same: to enable the injured party to be in the position they would have been if the damage did not occur.
Compensation for non-material damage
Non-material damage arises when someone’s actions harm another person’s body, health, reputation, honor, freedom, or personality — in other words, when the consequences are not financial, but are real and significant.
This type of damage cannot be measured in money in the same way as material damage. Therefore, when a lawsuit for non-material damage is filed, courts determine a fair monetary amount intended to alleviate the physical pain, fear, or emotional distress suffered.
The Law on Obligations provides that non-material damage can be compensated only in money, as there is no real way to “restore the previous state.”
Amounts of non-material damage compensation
When it comes to the amounts of non-material damage compensation, courts in Serbia use guidelines and tables adopted by the Supreme Court of Cassation. These do not represent fixed sums but serve as reference points for determining fair compensation, depending on the severity and duration of the consequences.
For example, when awarding compensation for physical pain, the court takes into account factors such as:
- The duration and intensity of the pain,
- Whether the pain is temporary or permanent, and
- The age and health condition of the injured person.
When awarding compensation for fear, the court evaluates the duration and intensity of the fear, as well as whether it has left permanent psychological consequences.
When determining compensation for injuries that permanently affect quality of life, the court assesses the degree of reduction in life activities (expressed as a percentage), along with the age, profession, and permanence of the consequences for the injured person.
In any case, the purpose of compensation in lawsuits for non-material damages is not to pay a “price for pain”, but rather to fairly alleviate the consequences of non-material harm and to affirm that the individual’s rights and dignity have been recognized and protected.
Compensation for Traffic Accident Damages
Traffic accidents are the most common basis for claiming compensation in practice.
The injured party may exercise the right to compensation for either material damage (e.g., vehicle damage, medical expenses, lost income) or non-material damage (pain, fear, emotional distress).
What documentation is required to claim compensation in case of a traffic accident?
To obtain compensation in the event of a traffic accident, it is necessary to collect documents that prove that the accident occurred, identify who is responsible, and establish the amount of damage. This typically includes:
- European Accident Report
- Police report
- Evidence of damage – photos of the damaged vehicle, repair invoices, medical records, insurance company damage assessment reports, etc.
- Insurance policy and vehicle registration certificate.
Of course, the complete documentation required will depend on the specific circumstances of the traffic accident.
What is the procedure for obtaining compensation from insurance?
Compensation for damages is most commonly obtained through mandatory automobile liability insurance.
In essence, the injured party submits a claim for damages to the insurance company of the liable party (the driver who caused the accident), provides the necessary documentation, and then an authorized assessor evaluates the damage and determines the amount of compensation before sending a proposal for out-of-court settlement.
After the settlement agreement is signed, the insurance company makes the payment to the injured party’s or repair shop’s account.
According to the Law on Mandatory Traffic Insurance, the insurance company must, within 14 days from the date of receiving the claim, determine the basis and amount of the claim, submit a reasoned offer for compensation, and make the payment.
If the insurer fails to make a decision within a reasonable time, the injured party has the right to initiate court proceedings to collect the claim. However, in most cases, the matter is resolved through out-of-court settlement, as this ensures faster payment and avoids litigation costs. If the insurance company offers an unreasonably low amount, a lawsuit can still be filed.
What determines the amount of compensation in traffic accidents?
The amount of compensation in traffic accidents is determined based on the type and extent of the damage, the degree of fault of the participants, the severity of injuries and permanent consequences, as well as other relevant circumstances.
For example, in practice, younger persons and those who have lost their ability to work usually receive higher compensation.
It is important to note that the purpose of the compensation process in traffic accidents is not to punish, but to restore the injured person to a condition as close as possible to the one before the accident — whether through repair, reimbursement of expenses, or fair monetary compensation.
Compensation for Workplace Injuries
A workplace injury refers to any injury sustained by an employee while performing their job duties, on the way to or from work, or while carrying out tasks in the employer’s interest.
Additionally, an illness that is a direct result of an accident or exposure to harmful working conditions is also considered a work-related injury.
When are you entitled to compensation for a workplace injury?
The right to compensation exists when the injury is causally related to work and it is proven that it occurred while performing work duties, on a business trip, or in situations legally equated with work (for example, saving lives or defending against natural disasters).
What is the procedure for claiming compensation in case of a workplace injury?
The procedure for compensation in the event of a workplace injury begins with reporting the injury to the employer and the competent labor inspection, along with the mandatory preparation of a record of the circumstances of the accident.
Once it is determined that the incident qualifies as a workplace injury, the employee may claim compensation — either out of court (through agreement with the employer or insurer) or through court proceedings if an agreement cannot be reached.
The injured worker is entitled to:
- Reimbursement of medical expenses,
- Compensation for lost wages during temporary incapacity for work,
- Non-material damages for physical pain, fear, emotional distress, and reduced life activity, and
- An annuity (pension) if the injury results in permanent disability or reduced working capacity.
Timely reporting of the injury and providing medical documentation are the most important pieces of evidence for exercising the right to full compensation in case of a workplace injury.
Compensation for Bodily Injuries
Compensation for bodily injuries in Serbia includes both material and non-material damages suffered by the injured person as a result of the injury.
The type and amount of compensation depend on the severity of the injury and the circumstances of its occurrence, distinguishing between compensation for minor bodily injuries and serious bodily injuries.
Compensation for Minor Bodily Injuries
A minor bodily injury refers to harm that does not endanger life or cause permanent reduction of working ability but may result in temporary physical pain or limited activity.
Non-material damage compensation for minor injuries includes payment for physical pain, emotional distress, and suffered fear. The amount is determined based on court practice, the intensity of pain, and the duration of the effects, as assessed by medical expertise. The greater and longer the pain established by medical findings, the higher the compensation awarded.
Material damages, on the other hand, cover medical expenses, medications, lost wages, and any other direct costs resulting from the injury.
Compensation for Serious Bodily Injuries
A serious bodily injury includes harm that endangers life or causes permanent damage to health or working ability.
In cases of violence or, for example, when seeking compensation for serious injuries sustained in a fight, the compensation amount may include significant material expenses (for long-term medical treatment, physical therapy, or assistance) and non-material satisfaction due to permanent consequences.
In such cases, the court considers the severity of the injury, the impact on daily life activities, the duration of treatment, and the psychological distress suffered by the injured party.
Dog Bite Compensation
A dog bite is one of the most common reasons for claiming damages, and the procedure for obtaining compensation depends on whether the dog is a stray or owned.
If the dog is a stray, the local municipality where the incident occurred is responsible for the damage, as it is legally obliged to organize the capture and care of abandoned animals. In practice, such cases are often resolved through out-of-court settlements — by submitting a claim to the municipality or city, along with evidence of the incident and resulting injuries. However, the compensation offered in settlements is usually much lower than the amount awarded by the court.
If the dog has an owner, the owner is liable for the damage, since they are required to keep the animal under control and prevent it from harming others.
Regardless of the circumstances, it is crucial to collect evidence promptly, such as photos of the location, witness statements, a report to the municipal or police authorities, and medical documentation (doctor’s report, vaccination certificate, treatment expenses).
The injured party has the right to claim material damages (such as medical expenses, lost income, or damaged clothing) and non-material damages (including physical pain, fear, or potential disfigurement—such as scarring).
In more complex cases, especially when the city administration disputes liability, it is advisable to engage a personal injury lawyer to file the claim, ensuring full and fair compensation.
Compensation for Unused Annual Leave
The right to annual leave is one of the fundamental rights of employees and is guaranteed by the Labor Law. The employer is obliged to allow the employee to use this leave each calendar year, as it protects the employee’s health, safety, and dignity.
However, if the employment relationship ends and the employee has not used their annual leave in full or in part, the law stipulates that they are entitled to financial compensation instead of taking the leave.
The compensation is calculated based on the average salary the employee earned over the previous 12 months, proportionate to the number of unused leave days.
A special case arises when the employer goes bankrupt. In such situations, the employee still has the right to compensation for unused annual leave, but under specific conditions.
The employee is entitled to this compensation if, before the initiation of bankruptcy proceedings, they had already acquired the right to annual leave in that calendar year. The bankruptcy court determines the amount of compensation, which is paid up to a maximum of the statutory minimum wage.
Compensation for Damage Caused by Storms and Other Natural Disasters
Whether it involves compensation for hail damage, flood damage, or damage caused by storms, earthquakes, or other natural disasters, this area is governed by the Law on Disaster Risk Reduction and Emergency Management. This law defines a natural or other disaster as an event whose scale exceeds the ability of individuals or local communities to recover independently.
Such an event must be officially declared by the Government of the Republic of Serbia, and the right to assistance is granted to citizens and businesses that have suffered material damage.
According to the law, material damage includes the physical destruction or impairment of items that were in regular use and served basic living needs. To exercise the right to compensation, it is necessary that:
- the damage is a direct consequence of the disaster,
- it is reported within 15 to 60 days from the public notice issued by the local self-government, and
- the claimant proves that the damaged property was properly maintained and preserved.
The procedure begins with reporting the damage to the local self-government, after which commissions assess the damage according to the methodology prescribed by the Government. The Office for Public Investment Management then verifies the findings. The municipality issues a decision on the assistance, and an appeal may be submitted to the Government Commission.
It is important to distinguish between state aid and insurance compensation: the state is not obliged to compensate everyone for property damage but provides assistance primarily to socially vulnerable citizens and in cases of major natural disasters. Actual compensation for damages is available only to those who had an insurance policy (e.g., vehicle comprehensive insurance or property insurance against storms or hail).
Citizens without insurance may still seek compensation if the damage was caused, for example, by a poorly maintained tree on public property. In that case, a claim is submitted to the relevant public utility company or property owner; if no agreement is reached, a lawsuit for damages may be initiated.
Compensation for Injury from a Fall on Ice
A fall on ice or snow can cause serious injuries and material damage, and liability depends on where the accident occurred.
If the fall happened on a public surface (such as a sidewalk, street, or parking lot), the local self-government is responsible, as it has a legal duty to ensure the area is cleaned and salted. This is similar to liability for injuries caused by a hole in a sidewalk — since municipalities must maintain public areas, failure to remove ice or snow constitutes a breach of duty. If the fall occurred in front of a building, responsibility lies with the residents or the property owner.
The injured person has the right to claim both material and non-material damages. It is crucial to seek medical attention immediately and make sure the medical report clearly states that the injury resulted from a fall on snow or ice.
Additionally, the injured person should take photos of the accident location, collect witness contact information, and then consult a lawyer who can initiate a compensation claim and represent them before the competent authorities.
Compensation for Medical Malpractice
Compensation for medical malpractice applies to situations where a doctor or healthcare institution causes injury or worsens a patient’s health condition due to negligence, treatment errors, or inadequate medical procedures.
The right to compensation covers both Material damages, such as medical expenses, rehabilitation costs, and lost income, and Non-material damages, for physical pain, emotional distress, and fear.
The main evidence in such cases includes medical records and, when necessary, expert medical evaluations. In practice, it is often advisable to hire a lawyer, since it must be proven that the injury was caused directly by the healthcare provider’s mistake, rather than by the natural progression of a disease or an unforeseeable event.
Compensation for Defamation and Damage to Honor and Reputation
Compensation for damage to honor and reputation is available to individuals whose integrity, dignity, or reputation has been harmed by insults, defamation, false accusations, or media publications.
Honor is a subjective concept reflecting a person’s self-respect and personal values, while reputation represents how others perceive that person.
The Law on Obligations provides two main forms of non-material compensation:
- Restoration to the previous state – achieved through measures such as publishing a court judgment refuting false claims, issuing a correction or retraction at the offender’s expense, or withdrawing the offending statement.
- Monetary compensation – awarded for emotional distress and damage to reputation.
The Law on Public Information contains specific rules for cases where the media violates a person’s honor or reputation. It is crucial to consult a lawyer quickly and respond without delay.
It’s also important to note that protection under this right covers not only the content of the information expressed but also the manner in which it was communicated.
Compensation for Flight Delays
Passengers are entitled to compensation for flight delays in accordance with EU Regulation 261/2004 and the Law on Obligations and Property-Legal Relations in Air Transport. The amount of compensation depends on the flight distance:
- up to 1,500 km – €250
- between 1,500 and 3,500 km – €400
- over 3,500 km – €600
Passengers facing a delay of at least two hours are entitled to reimbursement for food and drink expenses at the airport. However, airlines are not required to pay compensation if the delay was caused by extraordinary circumstances, such as severe weather conditions, political instability, security risks, or strikes.
If a flight is delayed for five hours or more, passengers may request a full refund of the ticket price for the unused portion of the journey, including, when necessary, a return flight to the original point of departure.
Compensation for Violation of the Right to a Trial Within a Reasonable Time
The right to a trial within a reasonable time is guaranteed by the Constitution of the Republic of Serbia and further regulated by the Law on the Protection of the Right to a Trial Within a Reasonable Time.
If court proceedings last disproportionately long, the affected party may seek compensation for damages due to a violation of this right. The law distinguishes between: Monetary compensation for non-material damage, and Compensation for material damage. Non-material damages are claimed through a special lawsuit against the Republic of Serbia, while compensation for material damages is pursued under the Law on Obligations and general civil procedure rules.
The amount of non-material compensation ranges from €300 to €3,000, depending on factors such as the duration of the proceedings, case complexity, conduct of the authorities and parties, and the importance of the case to the claimant. A lawsuit may be filed within one year from the date the right to fair satisfaction arises, and parties may first attempt an out-of-court settlement before the State Attorney’s Office.
Compensation for Damages: Frequently Asked Questions and Answers
How to Write a Claim for Compensation?
One of the most common questions regarding compensation for damages is: "Is there a template I can download and simply fill it out?"
Unfortunately (or fortunately), there is no universal template that can cover all situations. As explained throughout this guide, different types of damages — such as workplace injuries, slip-and-fall accidents, traffic accidents, or natural disasters — are governed by different laws and regulations, each with its own deadlines, evidence requirements, and procedures.
Therefore, writing a claim “by template” is a bad idea. In practice, every case has its own specific circumstances, meaning that a poorly drafted claim can result in losing the right to compensation.
The safest approach is to hire a lawyer specializing in compensation law, who will determine the basis of liability, assess the amount of damage, and prepare a legally sound claim on your behalf.
What Is the Deadline for Filing a Compensation Claim, and When Does the Statute of Limitations Apply?
In Serbia, the deadline for filing a lawsuit for compensation is three years from the date the injured party learns about the damage and the responsible party, but no more than five years from the date the damage occurred (objective deadline). However, there are also special, shorter deadlines for specific cases — for example: 6 months for workplace harassment (mobbing) claims, and 1 year for monetary compensation due to violation of the right to a trial within a reasonable time.
For the exact deadline that applies to your specific case, it is best to consult a compensation lawyer.
Compensation Lawyer – When Should You Seek Professional Help?
If you find yourself in a situation where you have suffered damage — whether material, non-material, or both — or when there is uncertainty about who is responsible, hiring a compensation lawyer can greatly simplify the entire process. Professional legal assistance helps you accurately assess the basis for compensation, gather necessary documentation, and prepare a claim or lawsuit in a way that fully protects your rights.
Do not rely on generic templates or “internet advice” — every case is unique, and one wrong step can reduce your chances of obtaining full compensation.
If you have doubts or wish to verify your rights and obligations, feel free to contact Pekić Law Office at: [email protected]
