One of the consequences that arises from economic growth in a country, and of course from its population increase, is the emergence of the need to develop new forms of mobility. However, this accelerated demographic growth and the use that these actors make of the different means of transportation bring with them a global problem, such as the progressive increase in traffic accidents.
At the international level, according to the World Health Organization (WHO), traffic accidents are the eighth leading cause of death[1], with around 1.24 million and 50 million people dying or being injured respectively[i] as a result. On the other hand, in Colombia, motor vehicle accidents constitute the second leading cause of violent death, which is why the Government constantly takes measures aimed at reducing them.
Now, one of the questions that arise in the context of the Pandemic due to the outbreak of the Coronavirus COVID-19 is: What has been the impact of COVID-19 on the occurrence of accidents in the country? And although the answer may seem logical based on the decisions made by the Government, such as the extension of mandatory quarantines in the national territory, mobility restrictions, measures such as the 'pico y cédula' (ID-based daily restrictions) along with the 'pico y placa' (license plate-based driving restrictions), it is pertinent to examine the figures provided by the Colombian Federation of Insurers (FASECOLDA), as follows: [2]
FASECOLDA. Industry Figures. 2021.
As can be seen, in 2019, the accident rate for automobiles fluctuates around 50%, 60%, and 70%, and although it varies by month, in general terms it remains within these ranges. Now, in the first two months of 2020, that is, before the Pandemic, accident rates increase compared to the previous year, approaching 70%. From that point on, in March and April, a considerable decrease in accidents is reflected, which corresponds to the time when the mandatory quarantine was decreed in the country.
On the other hand, as the months pass and despite the measures taken by the Government, the mandatory provision of some services and, in general, the gradual opening of some sectors of the economy up to the present day, expose a rapid increase in accident rates, such that the 2019 rates are almost reached in 2020. According to FASECOLDA, this situation normalizes again with a downward trend in the first month of 2021, which can be related to the second peak of the pandemic due to the outbreak of the Coronavirus COVID-19.
In that sense, when there is a decrease in traffic accident rates, one might implicitly believe that there would be a decrease in the filing of claims with insurance companies. Despite this, statistics show that the decrease in accidents is not by itself a reason for a decrease in the filing of claims, since there was only a 2% variation between 2019 and 2020, with a tendency to increase in the first month of 2021, as can be seen below:
The challenges brought by the pandemic due to the outbreak of the Coronavirus-COVID 19 have been many, and thanks to them, the different sectors have restructured their operational and service provision schemes. Technological tools and the use of the different platforms offered by the market have allowed insurance companies to comply with the obligations contracted by their clients, and of course, with what is established in Colombian regulations with regard to third parties injured in this type of accident.
Author: Valentina Peña Rueda . – Consulting Attorney