Traffic Accidents Generate €280 Million in Yearly Losses
According to calculations by Erki Ernits, head of the Traffic Insurance Association's prevention department, financial losses from traffic accidents in Estonia add up to 280 million euros per year, the equivalent of about 2 percent of the nation's GDP.
The greatest financial losses come from fatal road accidents, Postimees reported. “Rough calculations show that the untimely death of a person means that the state loses out on around [961,500 euros] of state taxes and other revenue,” said Ernits.
Traffic accidents that leave people disabled are equally costly. Calculating the losses for such accidents is challenging, however, because the association does not have information regarding the severity of injuries, making it hard to determine how the injured people are coping in their everyday lives. The association also lacks data for cases where an uninsured motorist caused an accident and was disabled as, in such instances, the motorist would not receive insurance benefits.
Accidents that result in injuries, rather than death or disability, make up the smallest portion of the total financial loss because in such cases only hospitalization costs and work loss during the treatment period have to be covered, said Ernits.
Ingrid Teesalu