Text consolidated by Valsts valodas centrs (State
Language Centre) with amending laws of:
27 September 2007 [shall
come into force on 1 November 2007];
23 October 2008 [shall come into force on 21 November
2008];
22 September 2011 [shall come into force on 26 October
2011];
19 September 2013 [shall come into force on 1 January
2014];
23 November 2016 [shall come into force on 1 January
2017];
14 December 2017 [shall come into force on 16 December
2017];
6 June 2018 (Constitutional Court Judgment) [shall come
into force on 7 June 2018];
14 March 2019 [shall come into force on 1 May
2019];
17 December 2020 [shall come into force on 12 January
2021];
9 December 2021 [shall come into force on 4 January
2022].
If a whole or part of a section has been amended, the
date of the amending law appears in square brackets at
the end of the section. If a whole section, paragraph or
clause has been deleted, the date of the deletion appears
in square brackets beside the deleted section, paragraph
or clause.
|
The Saeima 1 has adopted and
the President has proclaimed the following law:
Compulsory Civil Liability
Insurance of Owners of Motor Vehicles Law
Chapter I
General Provisions
Section 1. Terms Used in the Law
(1) The following terms are used in the Law:
1) insurance indemnity - an amount of money that is
paid, or a service for which a payment is made in order to
indemnify the losses;
2) insurable event - a road traffic accident, upon
which a payment of an insurance indemnity is provided for;
3) insurance contract - an agreement wherein the owner
of the motor vehicle undertakes the obligation to pay an
insurance premium within the determined time period and in the
determined amount, as well as fulfil other determined
obligations, but the insurer undertakes the obligation to pay an
insurance indemnity upon the occurrence of an insurance
event;
4) insurance policy - a specific sample document issued
by an insurer, which states that the owner of the motor vehicle
and the insurer have entered into an insurance contract;
5) insurance premium - the payment determined in an
insurance contract for the insurance of the civil liability of
the owner or a legal user of the motor vehicle;
6) insurer - a person that has the right to perform the
insurance of the civil liability of the owner or a legal user of
the motor vehicle and that is a member of the Motor Insurers'
Bureau of Latvia (hereinafter also - the Motor Insurers'
Bureau);
7) limit of insurer liability - the maximum amount of
insurance indemnity to be paid;
8) injured person - a natural person to whose health
damage has been caused in a road traffic accident, except the
driver of the motor vehicle that has caused the loss in the road
traffic accident;
9) [27 September 2007];
10) agreed statement - a form that the drivers of motor
vehicles who are involved in a road traffic accident shall
complete at the scene of the accident, confirming by signature
the circumstances of the accident, the facts and the scheme of
the accident;
101) direct loss regulation - a loss
compensation system under which an insurer who has insured the
civil liability of the owner of the motor vehicle that has caused
the losses authorises a civil liability insurer that has insured
the owner of the motor vehicle to whom the losses have been
caused to perform the activities laid down in this Law or a part
thereof in order for a third person to receive an insurance
indemnity;
11) territory in which a motor vehicle is normally based
-
a) the territory of such state in which a State registration
number and an appropriate State registration number plate
(hereinafter - the number plate) has been issued to the motor
vehicle, irrespective of whether it is a permanent or temporary
number plate;
b) if a certain type of motor vehicle does not require
registration, but such vehicle bears a distinguishing sign
analogous to the number plate, - the territory of such state in
which the distinguishing sign was issued;
c) if a certain type of motor vehicle requires neither the
number plate nor a distinguishing sign - the territory of such
state in which the owner or legal user of the motor vehicle
permanently resides;
d) if the motor vehicle has no number plate or if it has a
number plate which does not correspond to such motor vehicle, and
the motor vehicle is involved in a road traffic accident - the
territory of such state in which the road traffic accident has
occurred;
12) motor vehicle -
a) a road motor vehicle, a trailer (a semi-trailer), a moped
that is to be registered with the Road Traffic Safety Directorate
or the State Technical Supervision Agency, or with a local
government or which has been registered in a foreign state;
b) a tram that is to be registered with a local
government;
13) owner of the motor vehicle - a natural or legal
person who owns a motor vehicle or in whose name the motor
vehicle is registered;
14) legal user of the motor vehicle - a natural or
legal person who is not the owner of the motor vehicle, but who
uses the motor vehicle in road traffic on the basis of a power of
attorney, rental agreement or other legal grounds;
15) third person - any natural or legal person who has
suffered losses due to a road traffic accident and who is
entitled to an insurance indemnity. In the cases referred to in
Section 31, Paragraphs five and seven of this Law, a third party
is deemed to be the owner or legal user of the motor vehicle that
has caused the loss in a road traffic accident.
(2) The terms "military combat vehicle" and "trailer of
military combat vehicle" used in the Law correspond to the terms
used in the Road Traffic Law.
[27 September 2007; 22 September 2011; 9 December
2021]
Section 2. Purpose of the Law
The purpose of the Law is to protect the interests of third
persons who have suffered in road traffic accidents and govern
the legal relations among the owners, legal users of motor
vehicles and insurers in relation to the compulsory civil
liability insurance of the owners and legal users of motor
vehicles.
Chapter II
Insurance Object and Types of Insurance Contract
Section 3. Object and Obligation of
Compulsory Insurance
(1) The object of a compulsory insurance shall be the civil
liability of the owner or legal user of the motor vehicle
(hereinafter - the civil liability of an owner) for losses caused
to a third person in a road traffic accident.
(2) Each owner of the motor vehicle or a commercial
undertaking (merchant), if the motor vehicle has been transferred
for trade, shall insure the civil liability of an owner for each
motor vehicle used in road traffic by entering into an insurance
contract. If the owner has given a motor vehicle regarding which
an insurance contract has not been entered into or the time
period of an insurance contract has expired during the period of
use of the motor vehicle for use to another person, the legal
user of the motor vehicle shall enter into an insurance contract
in the name of the owner. The owner of the motor vehicle has an
obligation to enter into an insurance contract if such contract
has not been entered into by the legal user of the motor
vehicle.
(3) The insurance obligation specified in Paragraph two of
this Section does not exist:
1) for the owner of the motor vehicle who:
a) has transferred the motor vehicle which has been
de-registered in accordance with the procedures laid down in laws
and regulations for trade to a commercial undertaking
(merchant);
b) has transferred the motor vehicle for lease to another
person;
2) for the legal user of the motor vehicle who:
a) is in employment or service relationships with the owner of
the motor vehicle or - in the event of the lease of the motor
vehicle - with the holder of the motor vehicle indicated in the
motor vehicle registration certificate;
b) participates in road traffic by performing a test run with
a motor vehicle intended for trade that has been fitted by the
commercial undertaking (merchant) with trade number plates in
accordance with the procedures laid down in the laws and
regulations regarding the trade of motor vehicles.
[14 March 2019]
Section 3.1 Compulsory
Insurance Exception
(1) The civil liability of an owner for the use of military
combat vehicle and trailer of military combat vehicle registered
in the Register of the National Armed Forces of the Republic of
Latvia (hereinafter together - the military combat vehicle) in
road traffic shall not be insured.
(2) In the case of the civil liability of an owner, the
procedures for the compensation of the losses caused by the
military combat vehicle to a third person shall be regulated by
Sections 41.1 and 41.2 of this Law.
[17 December 2020; 9 December 2021]
Section 4. Types of an Insurance
Contract
There are the following types of insurance contracts:
1) a standard contract;
2) a frontier insurance contract;
3) the international insurance contract (hereinafter also -
the Green Card).
Section 4.1 Entering into
an Insurance Contract
(1) A standard contract shall be entered into in person or
using the means of distance communication.
(2) A frontier insurance contract and an international
insurance contract (Green Card) may only be entered into in
person.
(3) Upon entering into a standard contract and an
international insurance contract (Green Card) in respect of a
motor vehicle registered in the Republic of Latvia, the insurer
shall transfer the data on the concluded contract to the
information system of the compulsory civil liability insurance of
the owners of motor vehicles at the time of entering into the
contract. If a standard contract is entered into using the means
of distance communication, an insurer shall send a certified
confirmation regarding the concluded insurance contract to the
policy holder, including therein a reference to the publicly
available source of information regarding the compulsory civil
liability insurance of the owners of road motor vehicles on the
website where it is possible to verify the validity of the
insurance contract free of charge.
[27 September 2007; 22 September 2011]
Section 5. Standard Contract
(1) A standard contract is an insurance contract entered into
with regard to:
1) a motor vehicle registered or alienated in the Republic of
Latvia;
2) a motor vehicle alienated or de-registered in another
country of the European Economic Area or the Swiss Confederation
for the purpose of exporting it from the respective country and
registering it in the Republic of Latvia;
3) [22 September 2011];
4) [22 September 2011];
5) a motor vehicle intended for trade which has been fitted by
the commercial undertaking (merchant) with trade number plates in
accordance with the procedures laid down in the laws and
regulations regarding the trade of motor vehicles.
(2) In order to enter into a standard contract with regard to
a new motor vehicle that has not been previously registered in
the Republic of Latvia or in other countries, it shall first be
registered in the Republic of Latvia.
(3) A standard contract shall be in effect in the countries of
the European Economic Area and other countries which have joined
the Multilateral Agreement between the National Insurers' Bureaux
of the Member States of the European Economic Area and other
Associate States of 30 May 2002.
[27 September 2007; 22 September 2011; 14 March
2019]
Section 6. Frontier Insurance
Contract
(1) A frontier insurance contract is an insurance contract
entered into with regard to a motor vehicle registered in a
country which is not a country of the European Economic Area or
the Swiss Confederation if the driver of such motor vehicle is
unable to present the contract of compulsory civil liability
insurance of the owner of the motor vehicle that is in effect in
the territory of the Republic of Latvia.
(2) A frontier insurance contract shall be in effect within
the territory of the European Economic Area and in the Swiss
Confederation.
[27 September 2007; 14 March 2019]
Section 7. International Insurance
Contract (Green Card)
(1) An international insurance contract (Green Card) is an
insurance contract entered into regarding a motor vehicle that is
registered in the Republic of Latvia and participates in road
traffic in a country which is a member state of the Green Card
system. Such insurance contract that has been entered into
regarding a motor vehicle registered in a country which is not a
member state of the Green Card system shall also be considered an
international insurance contract (Green Card) if international
agreements provide for entering into such contract.
(2) A Green Card shall be in effect in the countries indicated
in an insurance policy.
(3) The owner of the motor vehicle registered in the Republic
of Latvia may enter into an international insurance contract only
with an insurer that is a member of the Motor Insurers'
Bureau.
[22 September 2011]
Section 8. Insurance Policy and the
Duplicate Thereof
(1) An insurer has an obligation to issue an insurance
policy:
1) immediately after entering into a frontier insurance
contract or an international insurance contract (Green Card);
2) immediately after entering into a standard contract, if it
has been entered into without using the means of distance
communication;
3) within five working days after receipt of the request of
the owner of the motor vehicle or the person who has entered into
a standard contract if it has been entered into using the means
of distance communication. A legal person shall submit a written
application for receiving an insurance policy.
(2) The non-existence of a written insurance policy shall not
affect the validity of the insurance contract.
(3) If an insurance policy has been stolen, lost, perished or
damaged, the owner of the motor vehicle shall submit a written
submission to the insurer who has insured the civil liability of
the owner of the motor vehicle with a request to issue a
duplicate of the insurance policy. The insurer shall issue the
duplicate of the insurance policy within two days. The insurer
has the right to charge a fee for the issuance of the duplicate
of the insurance policy, however, such charge must not exceed two
per cent of the insurance premium that is determined in the
insurance contract.
[27 September 2007 / See Transitional
Provisions]
Section 9. Term of Validity of an
Insurance Contract and Its Entering into Effect
(1) A standard contract shall be entered into for one, three,
six, nine, or 12 months, except for the cases where:
1) the motor vehicle has been registered temporarily. In such
case the standard contract may be entered into until expiry of
the term of validity indicated in the registration certificate of
the motor vehicle, not exceeding 12 months;
2) the motor vehicle has been de-registered in the Republic of
Latvia and it has been granted the permission to participate in
road traffic. In such case the standard contract may be entered
into for the term indicated in the registration certificate of
the motor vehicle;
3) [17 December 2020 / See Paragraph 21 of Transitional
Provisions];
4) a transit number card has been issued to the motor vehicle.
In such case the standard contract shall be entered into for the
term of validity indicated in the transit number card;
5) a testing number card has been issued to the motor vehicle.
In such case the standard contract shall be entered into for the
term of validity indicated in the testing number card, not
exceeding 12 months;
6) trade number plates have been issued to the commercial
undertaking (merchant). In such case the standard contract shall
be entered into for the term of validity of the trade number
plate, not exceeding 12 months.
(11) If the motor vehicle has been alienated or
de-registered in the country of the European Economic Area or the
Swiss Confederation in order to export it from the respective
country and to register it in the Republic of Latvia, such
standard contract shall be entered into for 30 days.
(2) A frontier insurance contract shall be entered into for a
time period from one to 12 months.
(3) An international insurance contract (Green Card) shall be
entered into for a time period from 15 days to 12 months.
(4) An insurance contract shall come into effect at the time
of entering into it or within the time period specified in the
insurance contract, but not later than within three months after
entering into it. If the insurance contract comes into effect
until 12:00, then, when calculating the expiry term of the
contract, the day of entry into effect thereof shall be included,
but if the insurance contract has been entered into at 12:00 or
later, that day shall not be included.
[27 September 2007; 14 March 2019; 17 December 2020 /
The new wording of the introductory part of Paragraph one and
Paragraph 1.1 shall come into force on 1 July 2021.
See Paragraph 21 of Transitional Provisions]
Section 9.1 Data Required
for Entering into an Insurance Contract
(1) The following data shall be necessary for entering into an
insurance contract:
1) personal data (the given name, surname and personal
identity number of a natural person, or the name and registration
number of a legal person);
2) the following data on the motor vehicle:
a) the registration data of the motor vehicle if a motor
vehicle registration certificate has been issued;
b) the data indicated in the document certifying the ownership
rights of the owner of the motor vehicle if the motor vehicle has
been alienated in the Republic of Latvia or if it has been
alienated or de-registered in the country of the European
Economic Area or the Swiss Confederation in order to export it
from the respective country and to register it in the Republic of
Latvia;
c) the data indicated in the transit number card if a transit
number card has been issued to a motor vehicle;
d) the data indicated in the testing number card if a testing
number card has been issued to a motor vehicle;
e) the data indicated in the register intended for the trade
of motor vehicles if trade number plates have been issued to the
commercial undertaking (merchant);
f) the data indicated in the licence card issued for a motor
vehicle for commercial passenger car services;
g) the data indicated regarding a motor vehicle which has been
issued with taxi licence plates.
(2) An insurance contract shall indicate:
1) the motor vehicle registration certificate number referred
to in Paragraph one, Clause 2, Sub-clause "a" of this Section or
the document referred to in Paragraph one, Clause 2, Sub-clause
"c", "d", or "e" of this Section and the number thereof;
2) the type, date of issuance, and number, if such exists, of
the document referred to in Paragraph one, Clause 2, Sub-clause
"b" of this Section.
(3) If, upon entering into an insurance contract, a policy
holder provides to the insurer information requested thereby for
the assessment of the possibility of occurrence of the insured
risk, the policy holder shall be liable for the accuracy of the
provided relevant information.
[22 September 2011; 14 March 2019; 17 December
2020]
Section 9.2 Data Required
for the Notification of Termination of an Insurance Contract
Prior to Expiration Thereof and Refund of the Unused Insurance
Premium or Part Thereof
(1) For the purpose of the notification of termination of an
insurance contract prior to expiration thereof and refund of the
unused insurance premium or part thereof:
1) at the time of entering into an insurance contract, a
policy holder shall provide the electronic mail address or mobile
telephone number of the owner of the motor vehicle or, in the
event of the lease of the motor vehicle, the holder of the motor
vehicle indicated in the motor vehicle registration certificate
and the policy holder;
2) the insurer shall, after entering into an insurance
contract, send the data referred to in Clause 1 of this Paragraph
to the Motor Insurers' Bureau and shall delete such data after
sending thereof.
(2) Upon termination of an insurance contract in one of the
cases referred to in Section 10, Paragraph one of this Law,
except for the case referred to in Section 10, Paragraph one,
Clause 1, Sub-clause "b" and Clause 11, Sub-clause "b" of this
Law, the Motor Insurers' Bureau shall send a notification:
1) to the insurer who has entered into the insurance contract
of termination of the insurance contract prior to expiration
thereof;
2) to the owner of the motor vehicle or, in the event of the
lease of the motor vehicle, to the holder of the motor vehicle
indicated in the motor vehicle registration certificate to his or
her electronic mail address or mobile telephone number of
termination of the insurance contract prior to expiration
thereof;
3) to the policy holder to his or her electronic mail address
or mobile telephone number of termination of the insurance
contract prior to expiration thereof and of the right of the
person to refund of the unused insurance premium or part
thereof.
(3) The policy holder shall be responsible for the veracity of
the information provided in Paragraph one, Clause 1 of this
Section.
[9 December 2021 / Section shall come into force on 1 July
2022. See Paragraph 25 of Transitional Provisions]
Section 10. Termination of Insurance
Contract Prior to Expiration Thereof
(1) An insurance contract shall terminate prior to expiration
thereof in cases where:
1) the owner of the motor vehicle is changed:
a) on the basis of an entry certifying the change of ownership
rights of the owner of the motor vehicle in the State or local
government register for motor vehicles;
b) on the basis of the document certifying the ownership
rights of the owner of the motor vehicle in cases where the motor
vehicle has not yet been re-registered in the State or local
government register for motor vehicles;
2) the motor vehicle with the number plate of another country
of the European Economic Area or the Swiss Confederation in
respect of which an insurance contract has been entered into in
accordance with Section 5, Paragraph one, Clause 2 of this Law is
registered in the Republic of Latvia;
3) a transit number card has been issued to the motor
vehicle;
4) taxi licence plates have been issued to the motor
vehicle;
5) a licence card for commercial passenger car services comes
into effect for the motor vehicle;
6) a certification of the write-off of the motor vehicle has
been issued thereto;
7) in the event of the lease of the motor vehicle - the holder
of the motor vehicle indicated in the motor vehicle registration
certificate has changed;
8) the motor vehicle has been transferred to a commercial
undertaking (merchant) for trade in accordance with the
procedures laid down in laws and regulations and a note has been
made thereon in the register of the Road Traffic Safety
Directorate or the State Technical Supervision Agency;
9) the motor vehicle changes its identification (chassis)
number upon re-registration of the motor vehicle in the State or
local government register for motor vehicles;
10) the motor vehicle is excluded from the State or local
government register for motor vehicles;
11) the motor vehicle which has a number plate of the Republic
of Latvia is registered in another country and such
information:
a) is available in the State or local government register for
motor vehicles;
b) is not available in the State or local government register
for motor vehicles.
(2) The conditions of Paragraph one of this Section shall not
apply to:
1) the cases of the lease of the motor vehicle where the motor
vehicle is re-registered and any of the following conditions is
met:
a) the holder of the motor vehicle indicated in the motor
vehicle registration certificate becomes the owner of the motor
vehicle;
b) the owner of the motor vehicle indicated in the motor
vehicle registration certificate becomes the holder of the motor
vehicle;
c) the owner of the motor vehicle indicated in the motor
vehicle registration certificate has changed without changing the
holder of the motor vehicle indicated in the motor vehicle
registration certificate;
2) to cases where, at the time of entering into an insurance
contract:
a) taxi licence plates have been issued for a motor vehicle
and new taxi licence plates are issued during the duration of the
insurance contract;
b) a licence card for commercial passenger car services has
been in effect for a motor vehicle and a new licence card for
commercial passenger car services comes into effect during the
duration of the insurance contract;
c) transit number plates have been issued for a motor vehicle
and new transit number plates are issued during the duration of
the insurance contract.
(3) An insurance contract shall terminate prior to expiration
thereof, i.e. from the time determined in the application
submitted to the insurer, but not earlier than from the time of
the submission of the application if the owner of the motor
vehicle or, in the event of the lease of the motor vehicle, the
holder of the motor vehicle indicated in the motor vehicle
registration certificate (if he or she or it has entered into an
appropriate insurance contract) submits to the insurer a written
application for the termination of an insurance contract prior to
expiration thereof and appends thereto the documents certifying
the occurrence of the following circumstances:
1) the motor vehicle has left the possession of the owner,
keeper or user not because of their fault, but due to illegal
activities of another person and it has been notified to the
relevant law enforcement authorities in accordance with the
procedures laid down in laws and regulations;
2) there is a mistake in the information indicated in the
insurance contract;
3) the legal person - the owner of the motor vehicle or - in
the event of the lease of the motor vehicle - the holder of the
motor vehicle indicated in the motor vehicle registration
certificate is being liquidated;
4) the name (for a legal person) or the given name or surname
(for a natural person) of the owner of the motor vehicle or - in
the event of the lease of the motor vehicle - the holder of the
motor vehicle indicated in the motor vehicle registration
certificate is being changed;
5) the licence of the insurer to perform a compulsory civil
liability insurance of the owners of motor vehicles has been
cancelled;
6) the liquidation of the insurer has been initiated in
accordance with the procedures laid down in laws and
regulations;
7) the taxi licence plates have been removed from a motor
vehicle in conformity with the Cabinet regulations regarding the
registration of motor vehicles that are issued on the basis of
the Road Traffic Law;
8) the validity period of the licence card issued to the motor
vehicle for commercial passenger car services has expired;
9) the registration of the motor vehicle in the State or local
government register for motor vehicles has been temporarily
suspended because the motor vehicle will not be used in road
traffic.
(4) In the event of termination of the insurance contract
prior to expiry thereof in the case referred to in Paragraph one,
Clause 1, Sub-clause "b" and Clause 11, Sub-clause "b" of this
Section, the owner of the motor vehicle or, in the event of the
lease of the motor vehicle, the holder of the motor vehicle
indicated in the motor vehicle registration certificate (if he or
she or it has entered into an appropriate insurance contract) has
the obligation to notify, without delay, of the occurrence of the
circumstances referred to in Paragraph one, Clause 1, Sub-clause
"b" and Clause 11, Sub-clause "b" of this Section, but not later
than within five days after occurrence of such circumstances:
1) to the State or local government register for motor
vehicles, appending the documents certifying the occurrence of
such circumstances;
2) to the insurer, appending the documents certifying the
occurrence of such circumstances.
(5) If the insurance contract is terminated prior to expiry
thereof in the case referred to in Paragraph one or three of this
Section, the policy holder shall, by submitting an application to
the insurer not later than seven days after the termination of
the insurance contract prior to expiry thereof and indicating the
number of the current account whereto the unused insurance
premium or part thereof shall be transferred, have the right to
the unused insurance premium or part thereof which corresponds
to:
1) the remaining time period from the day of termination of
the insurance contract to the expiration of the insurance
contract, and from which not more than five per cent of the share
of the insurance premium for the remaining period has been
deducted if the insurance contract is terminated due to the
circumstances referred to in Paragraph one or Paragraph three,
Clause 3, 4, 7, 8, or 9 of this Section and if the payment of the
insurance indemnity has not been claimed on the basis of the
relevant insurance contract;
2) the remaining time period from the day of termination of
the insurance contract to the expiration of the insurance
contract if the insurance contract is terminated due to the
circumstances referred to in Paragraph three, Clause 1, 2, 5, or
6 of this Section and if the payment of the insurance indemnity
has not been claimed on the basis of the relevant insurance
contract.
(6) In the event of delay in the deadline referred to in
Paragraph five of this Section, the unused insurance premium or
part thereof shall be refunded from the moment of receipt of the
application for refund of the unused insurance premium or part
thereof.
(7) In the case referred to in Paragraph one, Clause 1,
Sub-clause "b" and Clause 11, Sub-clause "b" of this Section, the
unused insurance premium or part thereof shall be refunded in
accordance with Paragraph five of this Section if the information
on the occurrence of the abovementioned circumstances is included
in the State or local government register for motor vehicles.
[9 December 2021 / The new wording of the Section shall
come into force on 1 July 2022. See Paragraph 26 of Transitional
Provisions]
Section 11. Validity of Insurance
Contract in case of Reorganisation or Liquidation of Insurer
(1) If an insurance company is reorganised and such company
has a legal successor, insurance contracts shall retain the
validity thereof until the expiration of thereof.
(2) In liquidating an insurance company, a liquidation
commission or a liquidator shall discharge the obligations
determined in insurance contracts. Obligations for the discharge
of which the insurance company to be liquidated does not have
sufficient resources shall be taken over by the Motor Insurers'
Bureau, which shall ensure the discharge of the obligations from
the Guarantee Fund of the Compulsory Civil Liability Insurance of
Motor Vehicle Owners (hereinafter - the Guarantee Fund).
Section 12. Amount of an Insurance
Premium
(1) An insurer shall determine the amount of an insurance
premium, taking into consideration the type of the motor vehicle,
the purpose of utilisation and other factors influencing
risk.
(2) The amount of an insurance premium that has been
determined at the time of entering into an insurance contract
shall be such that would ensure the discharge of the obligations
determined in an insurance contract, as well as cover the
expenses that are necessary for the provision of insurance.
[27 September 2007]
Section 13. Determining the Amount
of an Insurance Premium
(1) Upon entering into an insurance contract, the amount of an
insurance premium for the owner of the motor vehicle shall be
determined after evaluating the number of insurance indemnities
paid during the term of validity of the previous insurance
contracts, the number of cases identified in accordance with the
procedures laid down in laws and regulations, when the motor
vehicle was driven committing administrative offences for which
points for driving offences are registered, and criminal offences
against the safety of traffic, as well as assessing other factors
impacting risks.
(2) Upon entering into an insurance contract, the holder of
the motor vehicle indicated in the motor vehicle registration
certificate shall be considered as equal to the owner of the
motor vehicle for the purpose of determining the amount of an
insurance premium in the case of the lease of the motor
vehicle.
[27 September 2007; 14 March 2019]
Section 14. Payment of Insurance
Premium
(1) The owner of the motor vehicle has an obligation to pay an
insurance premium within the time period and in the amount
determined in an insurance contract.
(2) The insurance premium payment determined by an insurer
shall be reduced by 40 per cent for the owners of motor vehicles,
who are:
1) disabled persons of Group I and II;
2) disabled persons of Group III, who have difficulty of
movement [such difficulty shall be certified by an opinion of the
State Medical Commission for Expert-Examination of Health and
Working Ability (in insuring a passenger car)];
3) parents, guardians, or foster family providing care for a
minor child with disability.
(21) The reduction in the payment of the insurance
premium specified in Paragraph two of this Section shall be
applicable to one motor vehicle in the ownership of the owner of
a motor vehicle (a natural person) or - in the event of the lease
of the motor vehicle - to one motor vehicle the full mass of
which is up to 3,5 tonnes in the possession of the holder (a
natural person) indicated in the registration certificate of the
motor vehicle. In respect of the bodies governed by law referred
to in Paragraph two, Clause 3 of this Section, the reduction in
the payment of the insurance premium, taking into account that
specified in the first sentence of this Paragraph, shall be
applicable to one motor vehicle in the ownership of one person
(natural person) or - in the event of the lease of the motor
vehicle - in the possession of the holder (natural person)
indicated in the registration certificate of the motor vehicle. A
reduction in the payment of the insurance premium shall not be
applicable where a legal person is indicated in the registration
certificate of a motor vehicle as the holder of the motor
vehicle, irrespective of the fact that the owner of the motor
vehicle is the person indicated in Paragraph two of this
Section.
(3) In insuring tractor machinery or a trailer thereof which
is registered with the State Technical Supervision Agency, the
insurance premium payment determined by an insurer shall be
reduced by 30 per cent if an insurance contract is entered into
with the owner of the motor vehicle - an agricultural farm and
fish farm and a cooperative society of agricultural services. The
reduction in the payment of the insurance premium laid down in
this Paragraph of the Section shall also apply to an agricultural
producer - a merchant and a natural person if a certificate
issued by a local government has been submitted in the respective
calendar year to the insurer regarding the area of owned,
permanently used or leased land, which is used in agricultural
production.
(4) The Motor Insurers' Bureau shall compensate to an insurer
the reduction in the payment of the insurance premium referred to
in Paragraphs two and three of this Section from the Guarantee
Fund.
(5) An insurance shall not become void if the owner of the
motor vehicle has not made the necessary payments within the time
period determined in the contract.
(6) If the owner of the motor vehicle has not paid an
insurance premium within the time period determined in an
insurance contract, the insurer is entitled to bring an action to
a court.
[27 September 2007; 23 October 2008; 17 December 2020 /
Sub-clause 3 of Paragraph two and the second sentence of
Paragraph 2.1 shall come into force on 1 July 2021.
See Paragraph 23 of Transitional Provisions]
Section 15. Limit of Insurer
Liability
(1) Upon occurrence of an insurable event, an insurer that has
insured the civil liability of the owner of the motor vehicle
causing the losses, or the Motor Insurers' Bureau (if insurance
indemnity is payable from the Guarantee Fund) shall cover the
losses without exceeding the limit of insurer liability:
1) for indemnification of personal losses - up to 5 210 000
euros, regardless of the number of injured persons;
2) for indemnification of property loss - up to 1 050 000
euros, regardless of the number of third persons.
(2) A third person is entitled to request losses which are not
compensated in accordance with this Law or which exceed the limit
of insurer liability in accordance with the procedures laid down
in laws and regulations.
[27 September 2007; 19 September 2013; 14 March 2019 / See
Paragraph 19 of Transitional Provisions]
Section 16. Obligations of the
Driver of the Motor Vehicle
(1) Upon request of another person involved in a road traffic
accident, the driver of the motor vehicle shall provide the
required information regarding the insurance contract and the
insurer with which the insurance contract has been entered into.
When leaving the territory of the Republic of Latvia, the driver
of the motor vehicle must carry along a civil liability insurance
policy of the motor vehicle owner.
(2) The driver of the motor vehicle has an obligation to
notify in accordance with the procedures laid down in this Law
the insurer that has insured the civil liability of the motor
vehicle owner involved in a road traffic accident, or the Motor
Insurers' Bureau, if insurance indemnity is payable from the
Guarantee Fund, regarding the occurrence of an insurable
event.
[27 September 2007 / See Transitional Provisions]
Section 17. Obligations of an
Insurer
(1) An insurer may not refuse to enter into a compulsory civil
liability insurance contract of owners of motor vehicles.
(2) An insurer shall accept agreed statements and written
applications regarding road traffic accidents.
(3) An insurer shall authorise representatives in each country
of the European Economic Area and the Swiss Confederation who
shall handle the claims of the natural persons residing and the
legal persons registered in the country of the European Economic
Area and the Swiss Confederation (hereinafter - the resident), in
the language of such country, against insurers regarding
insurable events that have occurred in such country of the
European Economic Area and the Swiss Confederation which is not
the state of permanent residence of the injured natural person or
the state of registration of the legal person (hereinafter - the
state of residence) and in which the loss has been caused by the
motor vehicle with the number plate of the Republic of Latvia and
shall take decisions to pay an insurance indemnity or to refuse
to pay an insurance indemnity, and also shall ensure the payment
of the insurance indemnity. The representative of an insurer
shall be the resident of the respective country of the European
Economic Area or the Swiss Confederation. The insurer shall
notify the given name, surname or the name and legal address of
the representative of the insurer to the Motor Insurers'
Bureau.
(4) An insurer shall ensure the input of data into the
information system of the compulsory civil liability insurance of
the owners of motor vehicles in accordance with the procedures
and in the amount determined by the Cabinet.
(5) An insurer has an obligation to transfer payments to the
following accounts of the Motor Insurers' Bureau:
1) the Guarantee Fund;
2) for the performance of the measures to prevent road traffic
accidents;
3) for ensuring the operation of the Motor Insurers'
Bureau.
(6) Upon request of a policy holder (the owner of the motor
vehicle or the person that has entered into the insurance
contract), an insurer shall issue the forms of the agreed
statement:
1) immediately after receiving the request, if it has been
received without using the means of distance communication;
2) within five working days after receipt of the request, if
it has been received without using the means of distance
communication.
(7) Each insurer shall fulfil the obligations thereof and
cover the administrative expenses that have been incurred during
the time period when such insurer was a member of the Motor
Insurers' Bureau also after such insurer has terminated the
membership thereof in the Motor Insurers' Bureau.
[27 September 2007; 22 September 2011; 14 March
2019]
Chapter III
Loss Assessment and Insurance Indemnity
Section 18. Losses Due to a Road
Traffic Accident
(1) Upon occurrence of an insurable event, an insurer that has
ensured the civil liability of the owner of the motor vehicle
that has caused losses, or the Motor Insurers' Bureau, if
insurance indemnity is payable from the Guarantee Fund, shall, in
accordance with the limit of insurer liability, compensate the
losses assessed in accordance with the procedures laid down in
this Law that have been caused to a third person in a road
traffic accident.
(2) The rights to claim an insurance indemnity for
non-material losses caused to a person (non-pecuniary damage)
shall be regarded as individual rights.
[14 March 2019]
Section 19. Losses Caused to a
Person
(1) Material loss (material damage) caused to a person in a
road accident shall be the loss suffered by an injured person due
to:
1) medical treatment;
2) temporary work incapacity;
3) loss of capacity to work;
4) death.
(2) Non-material loss (non-pecuniary damage) caused to a
person in a road accident shall be the loss that involve pain and
mental suffering due to:
1) a physical trauma of the injured person;
2) the crippling or disablement of the injured person;
3) the death of a breadwinner, dependant or spouse;
4) Group I disability of a breadwinner, dependant or
spouse.
(3) The Cabinet shall determine the amount of insurance
indemnity and the procedures for the calculation thereof for
material and non-material losses caused to a person.
(4) If a third person believes that the loss suffered that is
referred to in Paragraphs one and two of this Section exceeds in
monetary terms the insurance indemnity calculated in accordance
with Paragraph three of this Section, he or she has the right to
address the insurer or the Motor Insurers' Bureau (if the
insurance indemnity is payable from the Guarantee Fund) with the
request to review the decision taken on the insurance
indemnity.
[14 March 2019]
Section 20. Losses Due to Medical
Treatment of Injured Person
(1) Losses due to the medical treatment of an injured person
are:
1) costs related to the assistance provided by a team of
emergency medical assistance to the injured person, the
transportation, admission, maintenance, diagnostics, treatment,
and rehabilitation of the injured person in a medical treatment
or medical rehabilitation institution (including travel expenses
when visiting a medical treatment or medical rehabilitation
institution), the nursing of the injured person, the purchase of
medication, therapeutic diet, treatment at home (including travel
expenses when visiting medical treatment or medical
rehabilitation institutions), and also prosthetics,
endoprosthetics, and the purchase or rental of technical
aids;
2) the non-received income for the period of work incapacity
certified by a medical treatment institution and calculated in
accordance with the procedures laid down in Section 21 of this
Law of such person who takes care of a child who has suffered in
a road traffic accident.
(2) Expenses that are related to the medical treatment of
inhabitants of the Republic of Latvia who have suffered in road
traffic accidents in the territory of the Republic of Latvia in
foreign countries shall be compensated if the abovementioned
medical treatment has been previously co-ordinated in writing
with an insurer or the Motor Insurers' Bureau.
[14 March 2019]
Section 21. Losses Due to Temporary
Work Incapacity of Injured Person
(1) Losses due to temporary work incapacity of an injured
person shall be the non-received income for the period of work
incapacity certified by the medical treatment institution.
(2) Non-received income shall consist of:
1) for an injured person who is considered to be an employee
at the time of a road traffic accident (within the meaning of the
law On State Social Insurance) - the average earnings of the
injured person calculated in accordance with the procedures laid
down in laws and regulations after deducting therefrom the taxes
(if payable) and the sick-pay and sickness benefits granted to
the injured person for health damage caused to him or her;
2) for an injured person who is not considered to be an
employee at the time of a road traffic accident (within the
meaning of the law On State Social Insurance), but receives
income - the amount calculated by dividing the income of the
previous 12 months with the respective number of months and
wherefrom the taxes (if payable) and the sickness benefits
granted to the injured person for health damage caused to him or
her have been deducted.
(3) An insurer or the Motor Insurers' Bureau shall compensate
to the employer of an injured person for the sick-pay paid to the
injured person during the period of temporary work incapacity
which shall be certified by a sick-leave certificate and for the
personal income tax and the mandatory State social insurance
contributions paid by the employer during the period of temporary
work incapacity of the injured person.
[27 September 2007; 14 March 2019]
Section 22. Losses Due to Loss of
Capacity to Work by Injured Person
(1) Losses due to loss of capacity to work by an injured
person shall be the difference of income that is determined by
deducting from the non-received income calculated in accordance
with the procedures laid down in Section 21, Paragraph two of
this Law the received employment earnings (if any) and the
pensions granted from the State social insurance budget or the
benefits received from the State and local government budget.
(2) Insurance indemnity for loss due to loss of capacity to
work shall be paid not less than once a month (unless another
agreement has been reached with an insurer or the Motor Insurers'
Bureau) while the loss of capacity to work of the injured person
remains.
(3) If the injured person is a full-time student of a
State-accredited higher educational institution and cannot
continue his or her full-time studies due to loss of capacity to
work, an insurer or the Motor Insurers' Bureau shall cover the
difference between the tuition for part-time study at a
State-accredited higher educational institution and the tuition
that would have to be paid for full-time studies at a
State-accredited higher educational institution, if the tuition
for part-time studies at a State-accredited higher educational
institution is greater than the tuition that would have to be
paid for full-time studies at an accredited higher educational
institution.
(4) If an injured person who has lost the capacity to work has
the opportunity to acquire a profession in order to receive
income from employment that is consistent with his or her current
health condition, an insurer or the Motor Insurers' Bureau shall
cover the tuition fee and other reasonable expenses related to
the acquisition of vocational education:
1) for a person who at the time of the road traffic accident
is a minor or who studies at a general, vocational, or higher
education institution and has not acquired a profession;
2) for a person who acquires a profession if the level of the
relevant vocational education is not higher than the level of
education that the injured person had at the time of the road
traffic accident.
(5) An insurer or the Motor Insurers' Bureau shall compensate
the tuition fee referred to in Paragraph four of this Section and
other reasonable expenses related to the acquisition of
vocational education outside the state of residence of the person
injured in a road traffic accident if the acquisition of the
respective education is justified and has been previously
co-ordinated in writing with the insurer or the Motor Insurers'
Bureau.
[14 March 2019]
Section 23. Losses Due to Death of
an Injured Person
(1) The following persons have the right to an insurance
indemnity due to the death of a breadwinner:
1) children, including adopted children:
a) until reaching the full age;
b) while they are full-time students at general, vocational,
or higher education institutions, but not longer than until the
age of 24 or regardless of age if disability has been determined
to them before reaching the full age;
2) brothers, sisters and grandchildren:
a) if they are younger than 18 years and do not have other
breadwinners who are capable to work;
b) while they are full-time students at general, vocational,
or higher education institutions, but not longer than until the
age of 24 if they do not have parents capable of work or,
regardless of age, if they do not have parents capable of work
and disability has been determined to them before reaching the
full age;
3) a widow (widower) who is incapable of work, parents or
grandparents who are incapable of work - until the restoration of
their capacity to work, and also a widow (widower) who is capable
of work if the family has children up to the age of eight years
or a child to whom disability has been determined;
4) other family members that were dependent, who are to be
considered as such in accordance with the law On State
Pensions.
(2) The losses caused to the dependants referred to in
Paragraph one of this Section due to death of the injured person
shall be a part of the income not received by the perished
person, to which each dependant was entitled to while the injured
person was alive, and from which the amount of survivor's pension
allocated to a dependant shall be deducted.
(3) The insurance indemnity payable to each of the persons
referred to in Paragraph one, Clauses 1 and 2 of this Section,
together with the disbursed State pension or State social
security allowance, may not be less than the minimum amount of
means of subsistence laid down in laws and regulations that each
of the parents has an obligation to provide to a child.
(4) A natural person who has undertaken to organise a funeral
and has presented the original of a death certificate, as well as
has submitted documents that confirm the fact of burial, has the
right to receive compensation for losses due to the burial of the
injured person.
(5) Funeral expenses shall be calculated in an amount of not
less than eight minimal monthly wages. If the actual amount of
funeral expenses is higher, actually incurred and documentarily
supported reasonable expenses shall be calculated.
(51) Funeral expenses shall be compensated in an
amount that is equivalent to the difference between the funeral
expenses referred to in Paragraph five of this Section and the
funeral benefit amount payable from the State and local
government budget, to be calculated due to the death of the
injured person.
(6) An insurance indemnity for losses due to the death of an
injured person shall be paid if the death of the injured person
has set in within one year after a road traffic accident and a
forensic medical expert or a medical treatment institution
certifies that the death of the injured person is causally
related to the relevant accident.
[22 September 2011; 14 March 2019]
Section 23.1 Indexation
of Losses Due to the Loss of Capacity to Work of the Injured
Person and the Death of the Injured Person
In calculating an insurance indemnity for losses due to the
loss of capacity to work or death of the injured person, an
insurer or the Motor Insurers' Bureau shall index, once a year,
the earned income that the injured person or deceased person
received before the road traffic accident, taking into account
the consumer price index (inflation coefficient) for the previous
year determined officially by the Central Statistical Bureau.
[27 September 2007 / See Transitional
Provisions]
Section 24. Compensation of State
Budget and Local Government Budget Expenses
(1) An insurer or the Motor Insurers' Bureau shall compensate
the expenses covered from the State and local government budgets
for the medical treatment and rehabilitation of the injured
persons and for the purchasing or leasing and adapting of
technical auxiliary equipment.
(2) An insurer or the Motor Insurers' Bureau shall compensate
the expenses covered from the State and local government budgets
in the form of the State social insurance services (including the
paid personal income tax) and State social benefits in relation
to the persons injured in a road traffic accident.
(3) The Cabinet shall determine the amount of and the
procedure for the compensation of the State and local government
budget expenses.
[22 September 2011; 14 March 2019]
Section 25. Losses Caused to
Property
(1) A loss caused to the property of a third person in a road
traffic accident is a loss that has arisen:
1) due to the damage or total loss of a motor vehicle;
2) due to the damage or total loss of a road, a road
construction, a building or a structure;
3) due to the damage or total loss of another property owned
by the person, except the property referred to in Paragraph one,
Clauses 1 and 2 of this Section;
4) while carrying out the rescue operations of persons who
have suffered in a road traffic accident;
5) due to the damage of a motor vehicle used for the
transportation of the injured person to a medical treatment
institution or the soiling of the interior of such motor
vehicle;
6) while removing motor vehicles from the site of the road
traffic accident;
7) due to the damage to the environment.
(2) If a third person wishes to receive an insurance indemnity
for the damage to the motor vehicle in the form of a cash amount,
an insurer or the Motor Insurers' Bureau shall pay a cash amount
in the amount of 70 per cent of the amount of loss indicated in
the loss calculation, excluding the value added tax. The unpaid
share of the insurance indemnity shall be paid in accordance with
the conditions of Paragraph four of this Section.
(3) If a third person wishes to receive an insurance indemnity
for the loss caused to the property (except for a motor vehicle)
in the form of a cash amount, an insurer or the Motor Insurers'
Bureau shall pay a cash amount that corresponds to the amount of
loss indicated in the loss calculation, excluding the value added
tax. The unpaid share of the insurance indemnity (the value added
tax included in the amount of the loss calculation) shall be paid
in accordance with the conditions of Paragraph five of this
Section.
(4) If the motor vehicle damaged in a road traffic accident
has been restored to the same condition as it was before the road
traffic accident and a third person, not later than within four
months after the payment of the insurance indemnity, submits to
an insurer or the Motor Insurers' Bureau the invoice for the
restoration (repairs) of the motor vehicle and a document
confirming the payment of the invoice, the insurer or the Motor
Insurers' Bureau shall, not later than within 15 days, take the
decision to pay the unpaid share of the insurance indemnity and
shall pay the unpaid share of the insurance indemnity within the
time period laid down in this Law in accordance with the actual
costs of the restoration (repairs) of the motor vehicle specified
in the invoice, including the amount of the value added tax
specified in the invoice, not exceeding the total amount of loss
indicated in the loss calculation which includes the value added
tax.
(5) If a property damaged in a road traffic accident (except
for a motor vehicle) has been restored to the same condition as
it was before the road traffic accident and a third person, not
later than within four months after the payment of the insurance
indemnity, submits to an insurer or the Motor Insurers' Bureau
the invoice for the restoration of the damaged property and a
document confirming the payment of the invoice, the insurer or
the Motor Insurers' Bureau shall, not later than within 15 days,
take the decision to pay the unpaid share of the insurance
indemnity and shall pay the unpaid share of the insurance
indemnity (the value added tax) within the time period laid down
in this Law, not exceeding the amount of the value added tax
specified in the loss calculation.
[22 September 2011; 23 November 2016 / See Paragraph 18 of
Transitional Provisions]
Section 26. Losses Due to Damage to
Motor Vehicle
Losses due to damage to a motor vehicle shall be expenses for
the repairs of the motor vehicle that are necessary in order to
restore the relevant vehicle to the condition such vehicle had
before a road traffic accident.
Section 27. Losses Due to Total Loss
of Motor Vehicle
(1) A motor vehicle shall be considered destroyed if the
repairs of such vehicle are technically impossible or
economically unsound. Repairs shall be considered economically
unjustified if the expected costs of the repairs of the motor
vehicle exceed an amount calculated as the difference between the
value of the motor vehicle before the road traffic accident and
the residual value of the damaged motor vehicle after the road
traffic accident.
(2) If the owner of the motor vehicle agrees that the vehicle
is recognised as destroyed, the compensation of losses shall be
paid in the amount that corresponds to the value of the motor
vehicle before the road traffic accident and also the expenses
for a statement that certifies the ownership of the numbered
unit, expenses for the de-registration of the motor vehicle in
the amount laid down in laws and regulations, and expenses for
the taking of the vehicle wreck to a treatment facility of motor
vehicles shall be compensated. An insurer or the Motor Insurers'
Bureau shall acquire the rights to the motor vehicle wreck.
Expenses for the taking of the vehicle wreck to a treatment
facility of motor vehicles shall be compensated to the person who
took the vehicle wreck there and who submitted the relevant
documents.
(3) If the owner of the motor vehicle does not agree that the
motor vehicle is recognised as destroyed, the compensation of
losses shall be paid in the amount that corresponds to the
difference between the value of the motor vehicle before and
after a road traffic accident.
(4) An expert shall determine the value of a motor vehicle
before a road traffic accident, taking into account the actual
run of the vehicle and other factors influencing the value of the
motor vehicle.
[22 September 2011; 14 March 2019]
Section 28. Expenses Due to Removal
of Motor Vehicle or the Wreck Thereof
Expenses due to the removal of a motor vehicle or the wreck
thereof shall be expenses for the removal of the motor vehicle or
the wreck thereof from the scene of a road traffic accident to
the place of residence of such vehicle owner or legal user who
was driving the motor vehicle at the time of the road traffic
accident, or to a place of the vehicle repairs within the
territory of the Republic of Latvia. If it is necessary to place
a motor vehicle or the wreck thereof in a parking area due to an
investigation in criminal proceedings or other reasons, the
expenses for the removal of the motor vehicle or the wreck
thereof to the relevant parking area, as well as the charges for
parking area services, shall be included in the losses.
[22 September 2011]
Section 29. Losses Due to the Damage
or Total Loss of Road, Road Construction, Building, Structure and
Other Property
(1) Losses due to a damage of a road, road construction,
building, structure and other property shall be expenses that are
necessary to repair the condition of the relevant object to the
condition such object had before a road traffic accident.
(2) Losses due to the total loss of a road, road construction,
building, structure and other property shall be the difference
between the value of the relevant object before and after a road
traffic accident and the expenses for the removal of the wreck of
the destroyed object, as well as the readjustment of engineer
networks and communications.
Section 30. Losses Due to Damage to
Environment
Losses due to damage to the environment shall be expenses for
the determination, confinement and minimisation of the damage,
the collection, neutralisation or elimination, or processing, of
pollution, the removal of the damaged topsoil, neutralisation or
elimination thereof and replacement with a new topsoil.
Section 31. Compensation for
Losses
(1) Insurers who have insured the civil liability of the
owners of motor vehicles involved in road traffic accidents, or
the Motor Insurers' Bureau, shall evaluate and determine the
liability of each person involved in the road traffic accident
for the losses caused, taking into account the circumstances of
the road traffic accident.
(2) Loss shall be compensated by such insurer who has insured
civil liability of the owner of the motor vehicle that has caused
the loss, or by the Motor Insurers' Bureau.
(3) If an insurance company that is licensed in a country of
the European Economic Area or the Swiss Confederation for the
performance of compulsory civil liability insurance of the owners
of motor vehicles has insured the civil liability of the owner of
the motor vehicle that has caused the loss in a road traffic
accident, and the road traffic accident in which the loss has
been caused to a resident the Republic of Latvia has occurred in
a country of the European Economic Area or the Swiss
Confederation, the loss shall be indemnified by the
representative authorised by the insurer of the respective
country in the Republic of Latvia or by the Motor Insurers'
Bureau. In addition, the person has the right to directly address
the insurer that has insured the civil liability of the owner of
the vehicle that has caused the loss and also has the right to
bring an action against such insurer to a court of the Republic
of Latvia.
(4) If the loss to a third person was caused by several
persons, including drivers of motor vehicles, insurance indemnity
to the injured person shall be paid in accordance with the degree
of liability of each motor vehicle driver.
(5) If the loss in a road traffic accident was caused by
several persons, thereby causing mutual losses, insurance
indemnity to each person shall be paid in accordance with the
degree of liability of each motor vehicle driver.
(6) If the loss in a road traffic accident was caused by one
person, but other persons involved in the road traffic accident
are also responsible for causing losses or increasing the
magnitude thereof, the losses shall be compensated, taking into
account the degree of liability of the persons involved in the
road traffic accident.
(7) If the persons involved in a road traffic accident are
known, but it is not possible to determine the degree of
liability of such persons due to their inconsistent reports,
then, in compensating the losses, it shall be assumed that the
degree of liability of the persons involved in the road traffic
accident is equal.
(8) If a pedestrian, cyclist or another participant of the
road traffic, who has not used a motor vehicle and in whose
actions no such violations of the road traffic rules have been
identified which would be causally linked to the loss caused in a
road traffic accident, has suffered in the road traffic accident
and if it is not possible to prove the liability of the driver of
the motor vehicle involved in the road traffic accident,
insurance indemnity shall be paid by the Motor Insurers'
Bureau.
(9) If another insurer or the Motor Insurers' Bureau has
compensated the caused losses before the insurer that has insured
the civil liability of the owner of the motor vehicle which
caused the loss in a road traffic accident has taken a decision
to pay an insurance indemnity, such insurer shall refund to the
relevant other insurer or Motor Insurers' Bureau the amount of
the compensation calculated and paid in accordance with the
procedures laid down in this Law. A claim for the compensation of
losses may be brought within one year from the day of payment of
the insurance indemnity.
(10) If another insurance company has compensated the caused
losses in accordance with a voluntary insurance contract, the
insurer that has insured the civil liability of the owner of the
motor vehicle which caused the loss in a road traffic accident,
or the Motor Insurers' Bureau (if the insurance indemnity is
payable from the Guarantee Fund), shall compensate the amount of
the compensation calculated and paid in accordance with the
procedures laid down in this Law. A claim for the compensation of
losses may be brought within one year from the day of payment of
the insurance indemnity.
(11) The insurer or the Motor Insurers' Bureau is not entitled
to refuse the payment of insurance indemnity or reduce it
significantly if the injured person (the passenger of a motor
vehicle) was aware or he or she should have been aware that the
driver of the motor vehicle was under the influence of alcohol or
of any other intoxicating substance at the time of the road
traffic accident.
(12) If a final ruling has entered into effect in criminal
proceedings or the limitation period of criminal liability has
entered into effect and, after the assessment of the
circumstances of a road traffic accident, it has been determined
which motor vehicle caused the loss, but it is not possible to
determine among the persons in the motor vehicle who was the
driver of the motor vehicle, and if the owner of the respective
motor vehicle or the holder of the motor vehicle indicated in the
motor vehicle registration certificate (if the owner of the motor
vehicle is a legal person) or - in the event of the lease of the
motor vehicle - the holder of the motor vehicle indicated in the
motor vehicle registration certificate at the moment of the road
traffic accident:
1) was in the motor vehicle which caused the loss, it shall be
presumed that he or she was the driver of the respective motor
vehicle and the loss caused in the road traffic accident shall
not be compensated to him or her, unless he or she has provided
information on the driver of the respective motor vehicle;
2) was not in the motor vehicle which caused the loss, it
shall be presumed that one of the persons who was in the
respective motor vehicle is the driver of the respective motor
vehicle. An insurance indemnity shall be paid to all persons who
were in the aforementioned motor vehicle and such insurance
indemnity has been calculated by complying with the principle of
proportionality: the insurance indemnity payable to each person
shall be reduced proportionally by the amount which is equal to
one part of the total number of persons in the motor vehicle by
concurrently considering the degree of liability of the driver of
the motor vehicle. The aforementioned shall not be applicable to
an injured person of whom it is certainly known that he or she
was not the driver of the respective motor vehicle.
[27 September 2007; 22 September 2011; 14 March
2019]
Section 32. Losses Caused by Leased
Motor Vehicles
Compensation of losses in accordance with this Law shall also
be paid in the case where in a road traffic accident a motor
vehicle, which is owned by a single owner, has damaged an object
which the same owner has leased to another person, and if the
owner of the lease object and the holder of the lease object for
which registration of the owner with the State Register of
Vehicles and Their Drivers of the Road Traffic Safety Directorate
or the Information System of Tractor-type Machinery and Drivers
Thereof of the State Technical Supervision Agency is required,
have been indicated.
[27 September 2007]
Section 33. Losses Caused to the
Property of Several Persons
(1) If several persons have caused the loss in a road traffic
accident and mutual losses have been caused to such persons due
to the damage or total loss of property, the insurance indemnity,
which the insurer of the civil liability of each person who has
caused the loss in the road traffic accident shall pay to the
injured person in accordance with the degree of liability of the
relevant person, may not exceed the limit of the liability of
each insurer.
(2) If the person who has caused the loss in a road traffic
accident has caused losses to several injured persons due to the
damage or total loss of property, the insurance indemnity to be
paid to the injured persons may not exceed the limit of insurer
liability.
(3) If losses have been caused in a road traffic accident to
the property of several owners and the total amount of losses
exceeds the limit of insurer liability, the losses shall be
compensated within the amount of the limit of insurer liability
in proportion to the amount of losses of each injured person.
[27 September 2007]
Section 34. Compensation of Losses
Caused by a Trailer (Semi-trailer) or Another Motor Vehicle Towed
in a Direct Hitch
(1) If losses have been caused by a trailer (semi-trailer) or
another motor vehicle towed in a direct hitch, which at the time
of a road traffic accident was hitched to a road tractor or other
towing motor vehicle, an insurer who has insured the civil
liability of the owner of the road tractor or another towing
vehicle shall pay the insurance indemnity to the injured
person.
(2) If losses have been caused by a trailer (semi-trailer),
which at the time of a road traffic accident was not hitched to a
truck or other towing motor vehicle, the insurance indemnity to
an injured person shall be paid by the insurer who has insured
the civil liability of the owner of the trailer
(semi-trailer).
Section 35. Cases when Losses are
not Compensated
An insurer or the Motor Insurers' Bureau shall not
compensate:
1) losses that have arisen while using a motor vehicle but for
causing which no liability results in accordance with Section
2347 of the Civil Law. These represent losses that have been
caused to a third person due to force majeure, with the
intent of the person himself or herself, or due to his or her
gross negligence;
2) losses that have been caused by an unidentified motor
vehicle, except the losses caused to a person referred to in
Section 19 and the losses caused to property referred to in
Section 25, Paragraph one, Clauses 4 and 5 of this Law. If severe
bodily injuries or moderately severe bodily injuries have been
caused to at least one injured person in the road traffic
accident, the losses referred to in Section 25 of this Law shall
be compensated to all the persons involved in the road traffic
accident;
3) losses that have been caused to property of the owner or
legal user of the motor vehicle that caused a road traffic
accident, and personal losses caused to the driver of the motor
vehicle that caused a road traffic accident. The losses referred
to in this Clause shall be compensated in the cases referred to
in Section 31, Paragraphs five and seven of this Law;
4) losses due to the damage, total loss or disappearance of a
motor vehicle and property contained therein, if the referred to
losses have been suffered by persons after a road traffic
accident;
5) losses that have been caused while using a motor vehicle in
a test drive or as result of use of a motor vehicle for a test
drive or in a car race;
6) losses due to a damage of a motor vehicle or trailer
hitched or otherwise attached to the motor vehicle that caused
the loss in a road traffic accident;
7) losses that have been directly or indirectly caused or
facilitated by ionising radiation, radioactive contamination
generated by any nuclear fuel, or by a radioactive, toxic,
explosive or otherwise dangerous feature of any explosive nuclear
compound or nuclear component thereof;
8) non-received profit due to a road traffic accident;
9) losses that have been caused by a rock or another object
that a motor vehicle or a device attached thereto has moved;
10) the expenses of an insurance company that have been
incurred due to the occurrence of an insurable event provided for
in a health insurance contract, except the cases where, in
accordance with the health insurance contract, the insurance
company compensates the losses by using the principle of
compensation;
11) losses that have been caused to the property of a third
person, which the owner or legal user of a motor vehicle that
caused a road traffic accident has accepted for commercial
carriage;
12) losses due to damage or total loss of property that have
been caused in such road traffic accident which should have been
reported to the State Police in accordance with the laws and
regulations but which has not been reported in bad faith or due
to gross negligence of the persons involved in the road traffic
accident;
13) losses that have arisen in the maneuvering area of an
airfield in a road traffic accident in which a motor vehicle and
an aircraft are involved;
14) in the event of the lease of the motor vehicle - the
losses caused to the property of the holder of the motor vehicle
indicated in the motor vehicle registration certificate and to
the motor vehicles thereof used in accordance with the lease
agreement which have arisen in a road traffic accident in which
such motor vehicles are involved which have been leased out to
one and the same person identified as the holder of motor
vehicles in the State Register of Vehicles and Their Drivers of
the Road Traffic Safety Directorate or in the Information System
of Tractor-type Machinery and Drivers Thereof of the State
Technical Supervision Agency;
15) losses caused by a motor vehicle which has been used for
committing an act of terrorism.
[27 September 2007; 22 September 2011; 14 March
2019]
Section 36. Reporting of the
Occurrence of an Insurable Event
(1) Persons involved in a road traffic accident have the
following duties:
1) take all the possible measures to record the circumstances
of the road traffic accident in accordance with the procedures
laid down in laws and regulations, as well as to prevent or
minimise further losses;
2) to safeguard and present the damaged property in such
condition as was after the road accident until the time when in
accordance with the procedures laid down in this Law the damage
caused to the property is recorded or refusal to carry out the
inspection of the damaged property is received;
3) provide information on the circumstances of the road
traffic accident to the insurer or the Motor Insurers' Bureau
within five days after receipt of the request thereof.
(2) The driver of the motor vehicle involved in a road traffic
accident has the duty to report the occurrence of an insurable
event to the insurer or the Motor Insurers' Bureau as
follows:
1) if the owner of the motor vehicle is a person who may claim
insurance indemnity, he or she shall submit an application
regarding an insurable event to the insurer that has insured the
liability of the owner of the motor vehicle that has caused the
loss, or to the Motor Insurers' Bureau if insurance indemnity is
to be paid from the Guarantee Fund. A completed agreed statement
shall be enclosed to the application if the circumstances of the
road traffic accident have been recorded using the agreed
statement forms;
2) if the owner of the motor vehicle is a person who may not
claim insurance indemnity, he or she shall submit a completed
agreed statement to the insurer with which the compulsory civil
liability insurance contract has been entered into, or, in the
absence of such, to the Motor Insurers' Bureau within 10 days
after the day of the occurrence of the road traffic accident
where the circumstances of the road traffic accident have been
recorded using the agreed statement forms, or notify of the road
traffic accident in writing if the circumstances of the road
traffic accident have been recorded by the State Police.
(3) If the driver of the motor vehicle has failed to report
the occurrence of a road traffic accident, the owner of the motor
vehicle or - in the event of the lease of the motor vehicle - the
holder of the motor vehicle indicated in the motor vehicle
registration certificate, or the legal user of the motor vehicle
who was not the driver of the motor vehicle involved in the road
traffic accident shall have the obligation:
1) to report the occurrence of an insurable event in
accordance with Paragraph two of this Section if there is
information on the road traffic accident at the disposal
thereof;
2) in order to enable an insurer or the Motor Insurers' Bureau
ascertain the circumstances of the road traffic accident, within
five days after receiving the request of the insurer or the Motor
Insurers' Bureau, to provide information (if such information is
at the disposal thereof or if such can be obtained by taking
reasonable measures) on the following:
a) the circumstances of the road traffic accident and also to
submit a completed agreed statement (if such is at the disposal
thereof or if such can be obtained by taking reasonable
measures);
b) the driver of the motor vehicle who was driving the motor
vehicle at the time of the road traffic accident (by indicating
the personal data of the relevant person: given name, surname,
personal identity number, but in respect of a foreigner - given
name, surname, date of birth, address of the place of
residence);
c) the legal user of the motor vehicle in the use of whom the
motor vehicle has been transferred (by indicating the personal
data of the relevant person: given name, surname, personal
identity number, but in the case of a legal person - name,
registration number, and legal address).
(4) A person who may claim insurance indemnity for the loss
caused to property (except the loss caused to the motor vehicle)
or personal losses shall submit an application regarding an
insurable event to the insurer that has insured the civil
liability of the owner of the motor vehicle that has caused the
loss or the Motor Insurers' Bureau if insurance indemnity is to
be paid from the Guarantee Fund.
(5) If the insurer that has insured the civil liability of the
owner of the motor vehicle that has caused the loss is not known
or such does not exist, the persons referred to in this Section
have a duty to address the Motor Insurers' Bureau or any insurer.
The respective insurer shall establish, liaising with the Motor
Insurers' Bureau, who should be notified of the insurable event
or submit an application regarding the insurable event, and shall
immediately notify the respective person thereof.
(6) Within five days counting from the day on which the
insurer or the Motor Insurers' Bureau has been notified of the
insurable event in accordance with Paragraph two, Clause 2 of
this Section the insurer or the Motor Insurers' Bureau:
1) shall carry out the inspection of the motor vehicle that
caused the loss in a road traffic accident;
2) is entitled not to carry out the inspection of the motor
vehicle that caused the loss in the road traffic accident,
notifying the person who reported the insurable event thereof in
writing.
(7) The insurer or the Motor Insurers' Bureau may refuse to
pay insurance indemnity if a third person has failed to perform
any of the duties laid down in Paragraph one of this Section in
bad faith or due to gross negligence.
[27 September 2007; 22 September 2011; 14 March
2019]
Section 37. Procedures for
Evaluating the Losses Caused to Property
(1) An insurer of the civil liability of the owner of the
motor vehicle that caused the loss in a road traffic accident or
of the Motor Insurers' Bureau, if insurance indemnity is to be
paid from the Guarantee Fund, shall ensure, without delay,
however, not later than within five days (counting from the day
on which the person who may claim the insurance indemnity has
notified the insurer or the Motor Insurers' Bureau of the
insurable event), inspection of the property of the person
claiming the insurance indemnity.
(2) If the insurer or the Motor Insurers' Bureau has failed to
ensure the inspection of the damaged property within the time
period referred to in Paragraph one of this Section, a third
person has the right to select an expert for determining the
amount of the losses. In such case the insurer or the Motor
Insurers' Bureau shall:
1) compensate for the losses on the basis of the documents
submitted by the third person to substantiate the amount of the
losses caused;
2) compensate the third person for expenses which the third
person incurred carrying out the examination of the property
damaged in the road traffic accident.
(3) A certified expert of the Motor Insurers' Bureau is
entitled to carry out technical examination of the motor vehicle
related to the damage caused to the motor vehicle in the Republic
of Latvia and in the process of carrying out the technical
examination such expert may also involve another person for whose
actions he or she shall be responsible. If a third person wishes
to receive an insurance indemnity for the losses referred to in
Section 26 or 27 of this Law in the form of a cash amount, the
carrying out of the technical examination of the motor vehicle
for the purpose of assessing the losses shall be compulsory.
(4) If a motor vehicle registered in another country has been
involved in a road traffic accident in the Republic of Latvia,
the expert is entitled to evaluate the documentation of loss
assessment of the respective motor vehicle prepared by a
competent person of the relevant country and, if such
documentation is justified, to calculate the loss incurred by
taking into account the repair costs of the motor vehicle in the
country where it is to be repaired or has been repaired or the
loss due to the total loss of the motor vehicle.
(5) The Cabinet shall issue the regulations of the technical
expert-examination of motor vehicles and specify the procedures
for the certification of technical experts.
[27 September 2007; 22 September 2011; 14 March
2019]
Section 38. Procedures for
Requesting Insurance Indemnity
(1) An insurer or the Motor Insurers' Bureau (if insurance
indemnity is to be paid from the Guarantee Fund) shall calculate
an insurance indemnity, taking into account the losses caused in
a road traffic accident.
(2) A person who claims to receive insurance indemnity shall
submit a submission regarding an insurance indemnity. The
following shall be attached to the submission:
1) the documents and information recorded in another manner
which supports the facts related to the insurable event, the
losses and their amount, if such information exists;
2) the documents of courts, prosecutor's offices and
investigation institutions or the officers thereof in connection
with the road traffic accident in which the loss was caused to a
third person, if such documents exist;
3) [27 September 2007];
4) a certificate issued by the State Revenue Service regarding
the employment income of the injured person before the road
traffic accident, if the losses referred to in Section 19,
Paragraph one, Clauses 2, 3 and 4 of this Law have been caused.
The certificate need not be appended if the person claiming the
insurance indemnity has agreed that the insurer or the Motor
Insurers' Bureau (if the insurance indemnity is to be paid from
the Guarantee Fund) will request and receive the certificate from
the State Revenue Service. If the losses referred to in Section
19, Paragraph one, Clause 4 of this Law have been caused, the
certificate shall be requested or consent for the certificate to
be received by the insurer or the Motor Insurers' Bureau shall be
given by the survivor who in accordance with this Law has the
right to claim the insurance indemnity or his or her
representative.
(3) The right of a person who claims to receive insurance
indemnity for the loss caused to the property of such person to
raise a claim against the insurer or the Motor Insurers' Bureau
shall cease if such right has not been claimed within a period of
one year from the occurrence of an insurable event.
(4) The right of a person who claims to receive the insurance
indemnity for the loss caused to such person to raise a claim
against the insurer or the Motor Insurers' Bureau for the
material loss (material damage) and non-material loss
(non-pecuniary damage) caused to such person shall cease if such
right has not been claimed within three years from the day of the
occurrence of an insurable event.
(5) If a person who may claim insurance indemnity in
accordance with this Law submits a written request, the insurer
or the Motor Insurers' Bureau shall acquaint such person with the
documents at their disposal which support the decision to pay
insurance indemnity due to such person or to refuse to pay
insurance indemnity, or issue the copies of the abovementioned
documents to such person. A person who may claim insurance
indemnity has the right to receive copies of the abovementioned
documents at a charge that does not exceed the expenses for
making the copies.
(6) The insurer or the Motor Insurers' Bureau does not have a
duty to acquaint with the documents and issue copies of documents
in accordance with the procedures laid down in Paragraph five of
this Section, if the insurer or the Motor Insurers' Bureau has
submitted documents in connection with a road traffic accident to
the law enforcement authorities within the scope of a criminal
matter.
(7) The insurer or the Motor Insurers' Bureau, having
acquainted with the documents which support its decision to pay
insurance indemnity or to refuse to pay insurance indemnity, has
the right to require that the person who claims insurance
indemnity, signs a confirmation which indicates the documents
with which such person has acquainted himself or herself. If a
person who claims insurance indemnity refuses to sign such
confirmation, it shall be signed by the insurer or the Motor
Insurers' Bureau, noting specifically that the abovementioned
person has refused to sign the confirmation.
[27 September 2007; 22 September 2011; 14 March
2019]
Section 38.1 Direct Loss
Regulation
(1) Insurers have the right to agree on direct loss regulation
by entering into a mutual contract in accordance with the binding
guidelines of the Motor Insurers' Bureau which lay down the
rights and obligations in the cases involving direct loss
regulation - the insurer's right to join the direct loss
regulation system and withdraw from it, the procedures for
payment of insurance indemnity, the procedures for mutual
settlement of accounts, the procedures for resolving disputes
regarding the insurance indemnity payment obligation, as well as
govern other matters related to the direct loss regulation.
(2) In reaching an agreement on direct loss regulation, an
insurer which has insured the losses of the civil liability of
the owner of the motor vehicle that caused the loss has the right
to authorise the insurer which has insured the civil liability of
the owner of the motor vehicle that has been damaged or totally
lost in the road traffic accident or the authorised person
thereof to carry out the following activities:
1) to accept and review an application regarding an insurable
event, as well as to carry out other activities which are
necessary in accordance with this Law in order to take a decision
on insurance indemnity;
2) to take a decision to pay an insurance indemnity and to pay
the insurance indemnity within the time periods laid down in this
Law.
(3) At the time of entering into an insurance contract and
after the road traffic accident an insurer has a duty to ensure
that the persons involved in the road traffic accident are
informed regarding the procedures for reporting an insurable
event and claiming an insurance indemnity.
[22 September 2011]
Section 39. Decision on Insurance
Indemnity
(1) An insurer or the Motor Insurers' Bureau shall take the
decision to pay an insurance indemnity within three months from
the day of receipt of the written application referred to in
Section 36, Paragraphs two and four of this Law, but not later
than within one month after all of the necessary documents have
been received, and shall send to the claimant of the insurance
indemnity appropriate written information if:
1) the loss caused can be calculated;
2) the person who caused the loss in a road traffic accident
is known;
3) the final ruling has entered into effect when criminal
proceedings have been initiated.
(2) If any of the conditions referred to in Paragraph one,
Clauses 1, 2, and 3 of this Section, except for Paragraph
2.1, cannot be established, an insurer or the Motor
Insurers' Bureau shall, within three months from the day of
receipt of the written application referred to in Section 36,
Paragraphs two and four of this Law, send to the claimant of the
insurance indemnity appropriate written information wherein the
justification for the non-payment of an insurance indemnity is
indicated.
(21) In the cases where the final ruling has not
entered into effect in criminal proceedings, an insurer or the
Motor Insurers' Bureau shall take the decision to pay an
insurance indemnity and shall send to the claimant of the
insurance indemnity appropriate written information if:
1) the loss caused can be calculated;
2) the circumstances of a road traffic accident are known;
3) it is possible to evaluate and determine the liability of
the persons involved in a road traffic accident for the loss
caused.
(3) An insurer or the Motor Insurers' Bureau shall pay to a
third person for exceeding the time period referred to in
Paragraphs one and two of this Section (three months from the day
of receipt of the written application referred to in Section 36,
Paragraphs two and four of this Law) 0.1 per cent of the unpaid
insurance indemnity per each day of delay in addition to the
unpaid insurance indemnity or the amount of losses determined by
a court.
(4) If an insurer or the Motor Insurers' Bureau has appealed a
decision of the law enforcement institutions or a court in
accordance with the procedures laid down in laws and regulations,
the time period referred to in Paragraphs one and two of this
Section shall be interrupted until the complaint is examined and
the insurer or the Motor Insurers' Bureau does not have an
obligation to pay the per cent referred to in Paragraph three of
this Section if the court has recognised the appeal as justified.
If the appeal is dismissed, the per cent shall be calculated in
accordance with the procedures laid down in Paragraph three of
this Section. The time period referred to in Paragraphs one and
two of this Section shall also be interrupted and the insurer or
the Motor Insurers' Bureau also does not have an obligation to
pay the per cent referred to in Paragraph three of this Section
while a criminal matter is being investigated.
(41) All rights to claim arising from this Law or
an insurance contract shall cease if a policy holder, insured
person, insurer, or any other person fails to exercise such right
properly within three years and no other limitation period has
been laid down in this Law.
(5) If a third person is not satisfied with the decision to
pay an insurance indemnity or refusal thereof, such person has
the right to request the Motor Insurers' Bureau to provide an
opinion on the respective decision. In examining a complaint by
the third person according to the substance, the Motor Insurers'
Bureau shall take a decision that shall be a recommendation by
nature.
(6) A third person may appeal the decision to pay an insurance
indemnity or refusal thereof to a court within three years after
the taking thereof even if such person does not exercise the
right to request the Motor Insurers' Bureau to provide an opinion
on the respective decision.
(7) If a person claiming an insurance indemnity has agreed in
writing to receive the written information provided for in this
Section through an electronic mail or as an SMS to the mobile
phone, the insurer is entitled to provide such information in
accordance with the consent received.
[27 September 2007; 22 September 2011; 23 November 2016; 14
March 2019]
Section 40. Procedures for the
Payment of Insurance Indemnity
(1) An insurer or the Motor Insurers' Bureau shall pay an
insurance indemnity within a period of five days after a decision
to pay insurance indemnity has been taken.
(2) If the time period referred to in Paragraph one of this
Section is not observed due to a fault of an insurer or the Motor
Insurers' Bureau, in addition to the insurance indemnity to be
paid, the insurer or the Motor Insurers' Bureau shall pay 12 per
cent of the insurance indemnity payable a year.
Section 41. Subrogation Actions of
Insurer and Motor Insurers' Bureau
(1) An insurer is entitled to submit a subrogation action
against:
1) the driver of the motor vehicle that has caused the loss to
a third person in a road traffic accident if he or she:
a) has driven the motor vehicle under the influence of
alcohol, narcotic, psychotoxic, psychotropic or other
intoxicating substances;
b) has driven the motor vehicle without the right to drive the
motor vehicle of the relevant category or has driven the motor
vehicle which does not correspond to the restriction code
indicated in the driver's licence and the loss caused in the road
traffic accident has a causal relationship with the respective
violation;
c) has left the site of a road traffic accident after the
accident, notwithstanding the requirements laid down in this Law
or other laws and regulations, or avoided a test for the
determination of the influence of alcohol, narcotic, psychotoxic,
psychotropic or other intoxicating substances to be performed in
accordance with determined procedures, or has used such
substances after the road traffic accident until the relevant
test;
d) has failed to submit a completed agreed statement to an
insurer upon request thereof so that the insurer could ascertain
the circumstances of the road traffic accident in cases where the
insurer has justified doubts about the veracity of the
information indicated in the completed agreed statement at the
disposal thereof;
d1) has failed to provide information on the
circumstances of the road traffic accident to an insurer upon
request thereof so that the insurer could ascertain the
circumstances of the road traffic accident in cases where the
insurer has justified doubts about the circumstances of the road
traffic accident;
e) has caused losses by committing an intentional criminal
offence;
f) has driven the motor vehicle obtained as a result of
committing a criminal offence, except for the cases where at the
time of the road traffic accident the driver of the motor vehicle
was a possessor in good faith;
11) the legal user of the motor vehicle who was not
the driver of the motor vehicle involved in the road traffic
accident if:
a) in accordance with Section 36, Paragraph three, Clause 2 of
this Law he or she, upon request of an insurer, has failed to
submit the information on the circumstances of the road traffic
accident, has failed to submit a completed agreed statement, or
has failed to submit the information on the driver of the motor
vehicle so that the insurer could ascertain the circumstances of
the road traffic accident in cases where it has justified doubts
about the circumstances of the road traffic accident;
b) any of the cases referred to in Paragraph one, Clause 1,
Sub-clause "a", "b", or "c" of this Section has been established.
A subrogation action may be submitted only if the legal user of
the motor vehicle that caused the loss in the road traffic
accident who was not the driver of the motor vehicle involved in
the road traffic accident has allowed the driving of the motor
vehicle in the case referred to in Paragraph one, Clause 1,
Sub-clause "a" or "b" of this Section or has allowed the leaving
of the place of the road traffic accident in the case referred to
in Paragraph one, Clause 1, Sub-clause "c" of this Section and if
the recovery of the loss from the driver of the motor vehicle is
not possible;
2) the owner of the motor vehicle that caused the loss in the
road traffic accident or - in the event of the lease of the motor
vehicle - the holder of the motor vehicle indicated in the motor
vehicle registration certificate if:
a) the owner of the motor vehicle has not paid an insurance
premium within the time period determined in an insurance
contract;
b) in accordance with Section 36, Paragraph three, Clause 2 of
this Law he or she, upon request of an insurer, has failed to
submit the information on the circumstances of the road traffic
accident, has failed to submit a completed agreed statement, has
failed to submit the information on the driver of the motor
vehicle or the legal user of the motor vehicle so that the
insurer could ascertain the circumstances of the road traffic
accident in cases where it has justified doubts about the
circumstances of the road traffic accident;
c) any of the cases referred to in Paragraph one, Clause 1,
Sub-clause "a", "b", or "c" of this Section has been established.
A subrogation action may be submitted only if the owner of the
motor vehicle that caused the loss in the road traffic accident
or - in the event of the lease of the motor vehicle - the holder
of the motor vehicle indicated in the motor vehicle registration
certificate has allowed the driving of the motor vehicle in the
case referred to in Paragraph one, Clause 1, Sub-clause "a" or
"b" of this Section or has allowed the leaving of the place of
the road traffic accident in the case referred to in Paragraph
one, Clause 1, Sub-clause "c" of this Section and if the recovery
of the loss from the driver of the motor vehicle is not
possible;
d) the motor vehicle has not undergone a State technical
inspection in accordance with the determined procedures and the
loss caused in a road traffic accident is causally related to the
technical condition of the motor vehicle;
e) the motor vehicle has not been fitted with tyres which are
intended for driving in winter circumstances according to the
road traffic rules during the period from 1 December to 1 March,
and the loss caused in the road traffic accident has a causal
relationship with the abovementioned violation;
3) the owner (manager) of the road if the insurer has
compensated for the loss caused in the road traffic accident
instead of the owner (manager) of the road;
4) a person who has caused the loss in bad faith;
5) a commercial undertaking (merchant) if such undertaking
(merchant) has not conformed to the procedures by which the motor
vehicles intended for trade participate in road traffic;
6) a person who has obtained a motor vehicle as a result of
committing a criminal offence.
(2) The Motor Insurers' Bureau is entitled to submit a
subrogation action against:
1) the legal user or the owner of the motor vehicle that
caused the loss in the road traffic accident or - in the event of
the lease of the motor vehicle - the holder of the motor vehicle
indicated in the motor vehicle registration certificate if the
civil liability of the owner has not been insured;
2) the driver of the motor vehicle if he or she has driven a
motor vehicle obtained as a result of committing a criminal
offence, except for the cases where at the time of the road
traffic accident the driver of the motor vehicle was a possessor
in good faith;
21) a person who has obtained a motor vehicle as a
result of committing a criminal offence;
3) an insurer, if the motor vehicle that has caused the loss
is being determined and the insurer had the obligation to pay
insurance indemnity;
4) an insurer if the insurance indemnity has been paid in the
case referred to in Section 51, Paragraph five or Paragraph
5.1 of this Law and the insurer had the obligation to
pay the insurance indemnity;
5) the Guarantee Fund (compensation authority) of a country of
the European Economic Area, if within three months from the day
of receipt of the written application referred to in Section 36,
Paragraphs two and four of this Law, a foreign insurer who has
insured the civil liability of the owner of the motor vehicle
that caused the loss, or a representative thereof has not sent
written information to the person claiming an insurance indemnity
(the resident of the Republic of Latvia who has brought action
against the insurer of the foreign country due to an insurable
event that has occurred in such country);
6) the Guarantee Fund (compensation authority) of a country of
the European Economic Area, if the insurer of such country has
not appointed a representative in the Republic of Latvia and the
loss has been caused to a resident of the Republic of Latvia in a
road traffic accident which occurred in such country;
7) the Guarantee Fund (compensation authority) of a country of
the European Economic Area, if the loss has been caused by a
motor vehicle registered in the country, the insurer of the civil
liability of the owner of which cannot be identified within two
months after such insurable event in which losses have been
caused to a resident of the Republic of Latvia;
8) the Guarantee Fund (compensation authority) of a country of
the European Economic Area, if such insurable event has occurred
in the country in which losses were caused to a resident of the
Republic of Latvia, but it is impossible to identify the motor
vehicle;
9) the Guarantee Fund (compensation authority) of a country of
the European Economic Area, if losses to a resident of the
Republic of Latvia in a road traffic accident which occurred in
the respective country were caused by a motor vehicle registered
outside the countries of the European Economic Area and the
insurer of the civil liability of the owner of which cannot be
identified within two months after occurrence of the insurable
event;
10) a commercial undertaking (merchant) which has accepted a
motor vehicle for trade in accordance with the procedures laid
down in laws and regulations and such motor vehicle has caused
the loss and the civil liability of the owner thereof has not
been insured.
(3) The Motor Insurers' Bureau is entitled also to submit a
subrogation action in the cases provided for by international
agreements.
(4) The Motor Insurers' Bureau is entitled to submit a
subrogation action in the cases referred to in Paragraph one of
this Section if it has paid an insurance indemnity in accordance
with Section 51, Paragraph one, Clause 5 of this Law.
(5) If an insurer or the Motor Insurers' Bureau has carried
out the payment of an insurance indemnity but subsequently such
facts have been established which were not known previously but
would have been important in taking the decision to pay an
insurance indemnity, the insurer or the Motor Insurers' Bureau
has the right to request the beneficiary of the insurance
indemnity to pay back the unjustifiably paid insurance indemnity
or part of it on the basis of the right to reclaim laid down in
the Civil Law.
(6) The Motor Insurers' Bureau is entitled to submit a
subrogation action for the reimbursement of the paid insurance
indemnity and the expenses referred to in Section 51, Paragraph
three, Clause 1 of this Law in the cases specified in this
Section.
[27 September 2007; 22 September 2011; 23 November 2016; 14
December 2019; judgment of the Constitutional Court of 6
June 2018; 14 March 2019]
Section 41.1 Compensation
of Losses Caused by the Military Combat Vehicle in the Country of
the European Economic Area or the Swiss Confederation
(1) The Motor Insurers' Bureau shall:
1) review claims in relation to losses caused by the military
combat vehicle which have occurred in a road traffic accident in
the Republic of Latvia, another country of the European Economic
Area or the Swiss Confederation, evaluate the losses caused and
within 70 days from the date of receipt of the claim, but not
later than within one month after receipt of all the necessary
documents, take the decision regarding the payment of
compensation of losses (hereinafter in this Section - the
insurance indemnity) or the refusal to pay the insurance
indemnity;
2) inform the Ministry of Defence thereof within five days
following the receipt of the claim referred to in Clause 1 of
this Paragraph;
3) within five days following the taking of a decision
regarding insurance indemnity:
a) if a decision has been taken regarding the payment of
insurance indemnity - send written information regarding this
decision to the claimant for damages (hereinafter in this Section
- the claimant for insurance indemnity) who has submitted the
claim referred to in Clause 1 of this Paragraph and submit to the
Ministry of Defence a decision regarding the payment of the
insurance indemnity and the documents related to the taking of
this decision or other information recorded in such a way that
certifies the facts, losses and extent of the road traffic
accident;
b) if a decision has been taken regarding the refusal of
insurance indemnity - send to the claimant for insurance
indemnity who has submitted the claim referred to in Clause 1 of
this Paragraph and to the Ministry of Defence the relevant
written information indicating the grounds for refusal;
4) within 70 days from the date of receipt of the claim, send
to the claimant for insurance indemnity who has submitted the
claim referred to in Clause 1 of this Paragraph and to the
Ministry of Defence the written information indicating the
grounds for not taking the decision referred to in Clause 3,
Sub-clause "a" or "b" of this Paragraph if the decision in
question cannot be taken due to a lack of information or other
circumstances.
(2) The Ministry of Defence shall:
1) within a period of 15 days following the receipt of a
decision of the Motor Insurers' Bureau regarding the payment of
insurance indemnity, pay the insurance indemnity to a claimant
for insurance indemnity who has submitted the claim referred to
in Paragraph one, Clause 1 of this Section and send a document
certifying payment to the Motor Insurers' Bureau;
2) on the basis of a request from the Motor Insurers' Bureau,
within one month following receipt of the request, reimburse the
expenses of the Motor Insurers' Bureau for the administration of
the insurance indemnity case or other activities necessary for
the settlement of this case if the Motor Insurers' Bureau has
taken a decision in accordance with Paragraph one, Clause 3,
Sub-clause "a" or "b" of this Section;
3) pay 12 per cent per year of the amount to be paid in
addition to:
a) the insurance indemnity payable to the claimant for
insurance indemnity who has submitted the claim referred to in
Paragraph one, Clause 1 of this Section if the time limit
referred to in Clause 1 of this Paragraph is not complied
with;
b) the expenses referred to in Clause 2 of this Paragraph to
the Motor Insurers' Bureau if the time limit referred to in
Clause 2 of this Paragraph is not complied with.
(3) In cases where a cross-border element is not involved in
the road traffic accident referred to in Paragraph one of this
Section, the provisions of this Law regarding the procedures for
calculating loss assessment and insurance indemnity shall be
applied to the regulation of losses caused by the military combat
vehicle, ensuring the same regime as in cases where losses have
been caused by a motor vehicle the owner of which has not insured
his or her civil liability.
(4) In cases where a cross-border element is involved in the
road traffic accident referred to in Paragraph one of this
Section, the law to be applied to the regulation of losses caused
by the military combat vehicle shall be determined in accordance
with the provisions of Regulation (EC) No 864/2007 of the
European Parliament and of the Council of 11 July 2007 on the law
applicable to non-contractual obligations (Rome II) (hereinafter
- Regulation No 864/2007), other international law or principles,
ensuring the same regime as in cases where losses have been
caused by a motor vehicle the owner of which has not insured his
or her civil liability.
(5) If, in connection with the losses (damages) caused by the
military combat vehicle, a soldier or guardsman of the Latvian
National Armed Forces has the right concurrently both to the
insurance indemnity specified in Paragraph two, Clause 1 of this
Section and to the compensation provided for in the laws and
regulations governing the social guarantees of soldiers and
guardsmen, the Ministry of Defence shall pay that whose amount is
the greater.
(6) If, in accordance with the procedures specified in this
Section, insurance indemnity has been paid to the claimant for
insurance indemnity for losses caused by the military combat
vehicle but an international agreement binding on the Republic of
Latvia provides for a different amount of and conditions for the
compensation of losses caused by the military combat vehicle, the
Ministry of Defence shall take the necessary actions in order to
ensure the fulfilment of the obligations specified in this
agreement.
[17 December 2020 / Section shall come into force on 1
February 2021. See Paragraph 21 of Transitional
Provisions]
Section 41.2 Compensation
of Losses Caused by the Military Combat Vehicle Outside the
Country of the European Economic Area or the Swiss
Confederation
If the military combat vehicle causes losses to a third person
as a result of a road traffic accident outside a country of the
European Economic Area or the Swiss Confederation, the Ministry
of Defence shall ensure the compensation of losses for that
person in accordance with the procedures specified in
international agreements binding on the Republic of Latvia.
[17 December 2020 / Section shall come into force on 1
February 2021. See Paragraph 21 of Transitional
Provisions]
Section 42. Law Applicable to a Road
Traffic Accident
The law applicable to the regulation of non-contractual
relations resulting from a road traffic accident shall be
determined in accordance with the provisions of Regulation (EC)
No 864/2007, other international law or principles.
[17 December 2020]
Chapter IV
Administration of the Field of Compulsory Civil Liability
Insurance of Motor Vehicle Owners
Section 43. Motor Insurers'
Bureau
(1) Proper functioning of the system of compulsory civil
liability insurance of the owners of motor vehicles shall be
ensured by the Motor Insurers' Bureau of Latvia, in accordance
with the purpose and tasks of operation thereof, which unites all
insurance companies that have the right to perform the compulsory
civil liability insurance of the owners of motor vehicles in the
Republic of Latvia.
(2) This Law shall regulate the operation of the Motor
Insurers' Bureau, but the Associations and Foundations Law shall
specify the legal status of the Motor Insurers' Bureau.
(3) If an insurer is excluded or withdraws from the Motor
Insurers' Bureau, the Motor Insurers' Bureau shall notify the
Financial and Capital Market Commission regarding such exclusion
or withdrawal.
(4) The Motor Insurers' Bureau shall fulfil the functions of
the Republic of Latvia Green Card Bureau.
(5) The Motor Insurers' Bureau shall take decisions
independently within the competence thereof, perform the tasks
assigned to the Bureau and shall be liable for the implementation
of such tasks.
Section 44. Competence, Rights and
Obligations of the Motor Insurers' Bureau
(1) The purpose of the operation of the Motor Insurers' Bureau
shall be to ensure the protection of the interests of third
persons who have suffered in a road traffic accident and promote
the stability and development of compulsory civil liability
insurance of the owners of motor vehicles.
(2) The Motor Insurers' Bureau shall:
1) ensure the operation of the Guarantee Fund;
2) pay insurance indemnity from the Guarantee Fund in the
cases laid down in this Law;
3) in accordance with the competence thereof, develop and
issue proposals to the Ministry of Finance that are associated
with compulsory civil liability insurance of the owners of motor
vehicles;
4) in accordance with the competence thereof, issue to
insurers binding instructions regarding compulsory civil
liability insurance of the owners of motor vehicles;
5) develop an information system necessary for the operation
of compulsory civil liability insurance of the owners of motor
vehicles, ensure the inclusion of such system in the integrated
State information system and operative accessibility of data in
the amount provided for by Cabinet regulations;
6) ensure the provision of the information referred to in
Section 50 of this Law;
7) develop and implement methodology for the performance of
technical expert-examinations of motor vehicles that is related
to compulsory civil liability insurance of the owners of motor
vehicles;
8) bring subrogation actions to a court in the cases laid down
in this Law;
9) organise international co-operation in the field of
compulsory civil liability insurance of the owners of motor
vehicles and enter into relevant agreements;
10) provide services that are related to the technical, legal
and medical expert-examinations of the compulsory civil liability
insurance of the owners of motor vehicles, the certification and
training (increasing qualification) of technical experts, as well
as the relevant services in the cases provided for in
international agreements binding to the Republic of Latvia;
11) provide assistance to natural and legal persons of the
Republic of Latvia in the defence of the rights and interests of
such persons abroad in fields that are related to compulsory
civil liability insurance of the owners of motor vehicles;
12) handle claims, if there is a conflict between an insurer
and the Motor Insurers' Bureau regarding the obligation to pay
insurance indemnity, and shall take decisions regarding the
payment of insurance indemnity or a refusal to pay insurance
indemnity, as well as ensure the payment of insurance
indemnity;
13) handle the claims of residents of the Republic of Latvia
due to insurable events that have occurred in the countries of
the European Economic Area and take decisions to pay an insurance
indemnity or to refuse to pay an insurance indemnity, as well as
ensure payment of the insurance indemnity if:
a) within three months from the day of receipt of the written
application referred to in Section 36, Paragraphs two and four of
this Law, a foreign insurer which has insured the civil liability
of the owner of the motor vehicle that caused the loss or a
representative thereof has not sent written information to the
person claiming insurance indemnity (the resident of the Republic
of Latvia which brought action against the foreign insurer due to
an insurable event which occurred in a country of the European
Economic Area);
b) the foreign insurer has not appointed a representative in
the Republic of Latvia and losses were caused to a resident of
the Republic of Latvia in an insurable event that occurred in a
country of the European Economic Area;
14) handle the claims of residents of the Republic of Latvia
due to insurable events that have occurred in the countries of
the European Economic Area and take decisions to pay an insurance
indemnity or to refuse to pay an insurance indemnity, as well as
ensure payment of the insurance indemnity if:
a) losses have been caused by a motor vehicle registered in a
country of the European Economic Area or another country the
insurer of the civil liability of the owner of which cannot be
identified within two months after an insurable event which
occurred in a country of the European Economic Area in which
losses have been caused to the resident of the Republic of
Latvia;
b) the motor vehicle cannot be identified after an insurable
event which occurred in a country of the European Economic Area
in which losses were caused to the resident of the Republic of
Latvia;
15) issue an opinion to third persons regarding the decision
of an insurer with regard to the payment of insurance
indemnity;
16) approve insurance policy forms and regulations for
completing such forms;
17) approve agreed statement forms and regulations for
completing such forms;
18) provide the members of the Motor Insurers' Bureau with
insurance policy and agreed statement forms;
19) provide the information at the disposal thereof to
investigative institutions, a prosecutor's office and a court
free of charge for the examination of the materials submitted for
the records of such institutions, investigation and
adjudication.
(3) The Motor Insurers' Bureau is entitled to:
1) in accordance with the procedures laid down in laws and
regulations and free of charge receive data required for
administering an insurable event for the purposes of the
protection of the interests of third persons and the compensation
of the State and local government budget expenses:
a) online from the information system of the compulsory civil
liability insurance of the owners of motor vehicles in accordance
with Sections 58 and 59 of this Law;
b) by submitting requests to the State Police and other State
administration institutions, local governments, the Office of the
Prosecutor, a court, and insurance companies without using the
information system referred to in Sub-clause "a" of this Clause
if the data required for administering an insurable event are not
available therein;
2) represent the legal user or owner of the motor vehicle that
has caused the loss in a road traffic accident if a submission
has been submitted to the Motor Insurers' Bureau regarding an
insurance indemnity and the insurance indemnity is to be paid
from the Guarantee Fund.
(4) The Motor Insurers' Bureau may not provide insurance
services and pursue insurance distribution.
[27 September 2007; 22 September 2011; 23 November 2016; 14
March 2019]
Section 45. Administrative Bodies of
the Motor Insurers' Bureau
The administrative bodies of the Motor Insurers' Bureau shall
be the general meeting and the Board.
Section 46. General Meeting
(1) General meeting shall be the decision-taking body of the
Motor Insurers' Bureau. The general meeting shall be comprised of
all the insurers.
(2) General meeting has the right to:
1) decide on measures against any insurer that does fulfil the
obligations of a member of the Motor Insurers' Bureau;
2) issue instructions binding to all insurers regarding the
compulsory civil liability insurance of the owners of motor
vehicles, insofar as such instructions are not in conflict with
this Law;
3) take a decision to exclude an insurer from the Motor
Insurers' Bureau if the obligations of an insurer referred to in
Section 17 of this Law are repeatedly not fulfilled;
4) recommend insurer representatives to the Minister for
Finance for appointment and dismissal from office in the
consultative council;
5) decide on any issues submitted by the Board or consultative
council, or proposed by an insurer;
6) determine the amount of financial resources necessary to
ensure the operation of the Motor Insurers' Bureau and the
procedures for payment;
7) recommend to the Financial and Capital Market Commission to
suspend or withdraw the relevant rights to perform the compulsory
civil liability insurance of the owners of motor vehicles;
8) decide on other issues that ensure the implementation of
this Law.
Section 47. Board
The executive body of the Motor Insurers' Bureau shall be the
Board of the Motor Insurers' Bureau. The Board shall consist of
the chairperson and two Board members.
[27 September 2007]
Section 48. Financing of the Motor
Insurers' Bureau
(1) The operation of the Motor Insurers' Bureau shall be
financed by insurers in the amount and in accordance with the
procedures laid down in the general meeting
(2) Insurer payments shall be sufficient in order to ensure
the implementation of the tasks and goals of the Motor Insurers'
Bureau determined in this Law.
(3) The insurer payments referred to in Paragraph two of this
Section shall be transferred into the account of the Motor
Insurers' Bureau and shall be only used to ensure the operation
of the Motor Insurers' Bureau.
Section 49. Consultative Council and
Provision of Information to State Administration Institutions
(1) A consultative council shall be established in order to
promote the co-operation of State administration institutions,
insurers, the Motor Insurers' Bureau, and other persons involved
in the field of the compulsory civil liability insurance of the
owners of motor vehicles and it shall be composed of one
representative from the Ministry of Finance, the Financial and
Capital Market Commission, the State Police, the Road Traffic
Safety Directorate, the Ministry of Transport, the Ministry of
Agriculture, the Latvian Automobile Association, the association
Autopārvadātāju asociācija "Latvijas auto", the Latvian
Motor Passenger Carrier Association, the Automotive Association,
the State Technical Supervision Agency, the Latvian Association
of Insurance Brokers, and the Latvian National Freight Forwarders
and Logistics Association and also - proportionally to the number
of the abovementioned authorities and organisations - the
representatives of the insurers authorised by the Motor Insurers'
Bureau and a representative of the Motor Insurers' Bureau.
(2) The consultative council shall:
1) examine and submit proposals to the Ministry of Finance
regarding the necessary amendments to laws and other laws and
regulations with regard to the compulsory civil liability
insurance of the owners of motor vehicles;
2) examine the reports prepared by the Board regarding the
situation in the compulsory civil liability insurance of the
owners of motor vehicles in the country.
(3) The Motor Insurers' Bureau shall submit aggregated
information to the Ministry of Finance and the Financial and
Capital Market Commission regarding the situation in the
compulsory civil liability insurance of the owners of motor
vehicles in the country not less than once a quarter.
[27 September 2007; 22 September 2011; 14 March
2019]
Section 50. Provision of
Information
(1) The Motor Insurers' Bureau shall provide the information
on:
1) insurance contracts entered into at least within the past
five years and the number of applications submitted in relation
to insurable events in accordance with such contracts on the
basis of which the payment of an insurance indemnity has been
carried out - within 15 days after request of the owner of the
motor vehicle or - in the event of the lease of the motor vehicle
- the holder of the motor vehicle indicated in the motor vehicle
registration certificate;
2) the validity of an insurance contract - upon request of the
owner of the motor vehicle or - in the event of the lease of the
motor vehicle - the holder of the motor vehicle indicated in the
motor vehicle registration certificate, or the person involved in
the road traffic accident;
3) the insurer of the civil liability of the owner of the
motor vehicle that caused the loss in the road traffic accident
and the representatives of the insurance claim settlement thereof
- upon request of the person involved in the road traffic
accident if the road traffic accident has occurred:
a) in a country of the European Economic Area or the Swiss
Confederation and the loss has been caused by a motor vehicle
which normally is based in the Republic of Latvia;
b) in the Republic of Latvia or outside it and the loss has
been caused by a motor vehicle which normally is based outside
the Republic of Latvia;
4) the owner or the legal user of the motor vehicle that
caused the loss in the road traffic accident - within 30 days
after request of a third person if the third person has
legitimate interest to obtain such information;
5) insurers with which it is possible to enter into an
insurance contract.
(2) The Motor Insurers' Bureau shall provide the information
referred to in Paragraph one, Clauses 1 and 4 of this Section
upon receipt of a written request from the persons referred to in
the respective Clauses. The information referred to in Paragraph
one, Clauses 2 and 3 of this Section shall be available on the
website of the Motor Insurers' Bureau upon receipt of a written
request of the persons referred to in the respective Clauses. The
information referred to in Paragraph one, Clause 5 of this
Section shall be publicly available on the website of the Motor
Insurers' Bureau.
(3) The Motor Insurers' Bureau has the right to request and to
receive a fee for the preparation of the information referred to
in Paragraph one, Clause 1 of this Section, the amount whereof
does not exceed the expenses for the preparation of the
information.
[14 March 2019]
Section 50.1 Providing
Information to the Owner of the Motor Vehicle
[14 March 2019]
Section 51. Guarantee Fund
(1) Insurers shall create and the Motor Insurers' Bureau shall
administer the Guarantee Fund. The purpose of the Guarantee Fund
shall be to ensure the payment of insurance indemnity to cover
such losses that have been caused by:
1) a motor vehicle whose owner has not insured his or her
civil liability;
2) an unidentified motor vehicle (in such case, the provisions
of Section 35 of this Law shall be complied with);
3) a motor vehicle the fault of the driver whereof cannot be
proven in the case referred to in Section 31, Paragraph eight of
this Law;
4) [14 March 2019];
5) a motor vehicle in respect of the insurer of the civil
liability of which an insolvency procedure has been declared;
6) a motor vehicle registered in the Republic of Latvia the
civil liability insurer of the owner whereof is not possible to
determine;
7) a motor vehicle the insurer of the civil liability of the
owner whereof or a representative thereof has not sent written
information to the person claiming an insurance indemnity (the
resident of the Republic of Latvia who has brought action against
the foreign insurer due to an insurable event that has occurred
in a country of the European Economic Area) within three months
from the day of receipt of the written application referred to in
Section 36 of this Law;
8) a motor vehicle the insurer of the civil liability of the
owner whereof has not appointed a representative in the Republic
of Latvia, if losses were caused to the resident of the Republic
of Latvia in an insurable event that has occurred in a country of
the European Economic Area;
9) a motor vehicle registered in a country of the European
Economic Area or another country if an insurable event has
occurred in a country of the European Economic Area and in which
losses have been caused to the resident of the Republic of
Latvia, but it is not possible to identify the insurer of the
civil liability of the owner of the motor vehicle within two
months after the insurable event;
10) an unidentified vehicle in an insurable event that has
occurred in a country of the European Economic Area in which
losses have been caused to the resident of the Republic of
Latvia. In such case the losses caused to property referred to in
Section 25, Paragraph one, Clauses 1, 2, 3, 6 and 7 of this Law
shall be covered from the Guarantee Fund only if such
compensation is provided for in the laws and regulations of such
country of the European Economic Area in which the insurable
event occurred.
(2) A compensation of losses shall be paid from the resources
of the Guarantee Fund in the cases provided for in international
agreements.
(3) The following shall be covered from the Guarantee
Fund:
1) expenses for administering an indemnity case or other
activities necessary to settle the claim if in accordance with
this Law the Motor Insurers' Bureau takes the decision to pay an
insurance indemnity or to refuse the payment of an insurance
indemnity, and the expenses incurred due to recovering insurance
indemnities paid out by the Guarantee Fund by way of
subrogation;
2) the compensation laid down in this Law to an insurer for
reduction in the payment of insurance premium;
3) expenses incurred due to ensuring the safeguarding and
investing of the assets of the Guarantee Fund;
4) expenses incurred due to ensuring the transfer of the
insurance indemnity payment risk laid down in Paragraph one,
Clauses 1, 2, 3, 4, 5 and 6 of this Section.
(4) Losses to a foreigner or foreign legal person the legal
acts of the place of residence or the state of registration of
which restricts the payment of compensation for losses from the
Guarantee Fund or a corresponding institution in the relevant
foreign country shall be compensated by applying the same
restrictions.
(5) The resources of the Guarantee Fund shall be used to pay
compensation for losses in one of the following cases:
1) if a dispute arises between an insurer and the Motor
Insurers' Bureau regarding the duty to pay an insurance
indemnity;
2) if a dispute arises between insurers regarding the duty to
pay an insurance indemnity when losses to a third person have
been caused by several persons, including the drivers of motor
vehicles, and within three months from submitting the application
regarding an insurable event it is impossible to determine the
degree of liability of the driver of each motor vehicle.
(51) The resources of the Guarantee Fund shall be
used to cover the indemnity paid in accordance with Section
38.1 of this Law by an authorised insurer in the cases
of direct loss regulation if upon its request the insurer that
has insured the civil liability of the owner of the motor vehicle
that has caused the losses has not compensated, in whole or in
part, for the claimed losses. In such case the insurer whose
actions have been recognised by the Motor Insurers' Bureau as
unjustified shall reimburse the resources used from the Guarantee
Fund and pay for the use of the resources of the Guarantee Fund
12 per cent per year from the amount of the insurance indemnity
paid from the Guarantee Fund from the day when payment was
performed up to the day when the insurer reimbursed the insurance
indemnity paid.
(6) The resources of the Guarantee Fund shall be comprised
of:
1) single payments made by insurers;
2) deductions from the premiums of the compulsory civil
liability insurance of the owners of motor vehicles;
3) additional payments made by insurers;
4) sums recovered by the Motor Insurers' Bureau by way of
subrogation regarding losses caused in a road traffic
accident;
5) donations and gifts;
6) revenue from the safeguarding and investing of the
resources of the Guarantee Fund.
(7) The holder of the Guarantee Fund shall be the Motor
Insurers' Bureau. The Motor Insurers' Bureau shall take decisions
regarding the utilisation of the resources of the Guarantee Fund
for the determined goals.
(8) The Council of the Guarantee Fund shall supervise the
utilisation of the resources of the Guarantee Fund. The Council
shall consist of an authorised representative of each insurer and
an authorised representative of the Board of the Motor Insurers'
Bureau.
(9) The Cabinet shall determine the procedures for the
creation, accumulation and administration of the Guarantee Fund.
The Financial and Capital Market Commission shall supervise the
compliance with the procedures for the creation, accumulation and
administration of the Guarantee Fund.
[27 September 2007; 23 October 2008; 22 September 2011; 14
March 2019]
Section 51.1 Safeguarding
and Investing of the Resources of the Guarantee Fund
(1) The Motor Insurers' Bureau shall keep the resources of the
Guarantee Fund in a credit institution registered in the Republic
of Latvia, another Member State of the European Union or a
country of the European Economic Area (hereinafter also - the
Member State).
(2) The investments of the resources of the Guarantee Fund may
be made and managed, entering into a contract with the Motor
Insurers' Bureau regarding the management of the resources of the
Guarantee Fund:
1) a credit institution entitled to provide investment
services and investment ancillary services in the Republic of
Latvia;
2) an investment brokerage company entitled to provide
investment services in the Republic of Latvia;
3) an investment management company entitled to provide
management services (also individually managing the financial
instruments of investors) in the Republic of Latvia.
(3) The resources of the Guarantee Fund shall be invested in
accordance with the procedures laid down in this Section,
implementing such investment policy that ensures the performance
of payment obligations from the resources of the Guarantee Fund
and the liquidity of investments laid down in this Law.
(4) The resources of the Guarantee Fund may be invested
in:
1) the securities issued or guaranteed by the governments of
the Republic of Latvia, Member States of the European Union or
countries of the European Economic Area and the local governments
thereof or in money market instruments;
2) term deposits with a credit institution that has received a
licence for the operation as a credit institution and which has
the right to provide financial services in a Member State;
3) investment funds or mutual investment undertakings
(hereinafter - the investment funds) equivalent thereto if they
have been registered in a Member State or a member state of the
Organisation for Economic Co-operation and Development and the
investors thereof are entitled to alienate their investment
certificates without restrictions;
4) the securities issued or guaranteed by the member states of
the Organisation for Economic Co-operation and Development or the
money market instruments if the long-term credit rating of the
respective currency in a foreign currency meet the category of
investments according to the assessment of the international
rating agencies;
5) shares and other equity securities if they are included in
the official listing or a listing comparable thereto (hereinafter
- the official listing) of a stock exchange (regulated market)
registered in a Member State or in the official listing of a
stock exchange registered in a member state of the Organisation
for Economic Co-operation and Development - a fully-fledged
member of the International Securities Exchange, or are traded in
other regulated and openly accessible financial instrument
markets;
6) debt securities of commercial companies if they are
included in the official listing of a stock exchange (regulated
market) registered in a Member State or in the official listing
of a stock exchange registered in a member state of the
Organisation for Economic Co-operation and Development - a
fully-fledged member of the International Securities Exchange, or
are traded in other regulated and openly accessible financial
instrument markets;
7) equity and debt securities of commercial companies if they
are not included in the official listing of a stock exchange
(regulated market), however, the prospectus of which provide for
the inclusion of the securities in the official listings of a
stock exchange registered in a member state of the Organisation
for Economic Co-operation and Development - a fully-fledged
member of the International Securities Exchange will be included
within one year from the day on which subscription thereto begins
in order to perform transactions with these securities;
8) immovable property registered in a Member State, if it has
a valuation which supports that the investment corresponds to the
value of the immovable property.
(5) The resources of the Guarantee Fund shall be invested in
conformity with the following restrictions:
1) investments in securities or money market instruments
issued or guaranteed by a single state or local government may
not exceed 25 per cent of the resources of the Guarantee
Fund;
2) investments in debt securities issued by a single
commercial company may not exceed 10 per cent of the resources of
the Guarantee Fund and 10 per cent of the total amount of debt
securities issued by a single issuer;
3) investments in equity securities issued by a single
commercial company may not exceed 10 per cent of the resources of
the Guarantee Fund and 10 per cent of the equity capital and the
shares carrying voting rights of the respective issuer;
4) deposits with a single credit institution may not exceed 20
per cent of the resources of the Guarantee Fund, but total
receivables against a single credit institution may not exceed 25
per cent of the resources of the Guarantee Fund, except
receivables that are due upon request against the holder of the
funds;
5) investments in a single investment fund may not exceed 10
per cent of the resources of the Guarantee Fund;
6) investments in a single undivided immovable property may
not exceed 10 per cent of the resources of the Guarantee Fund,
but total investments in immovable property may not exceed 25 per
cent of the resources of the Guarantee Fund;
7) investments in financial instruments issued by commercial
companies belonging to a single group of companies may not exceed
25 per cent of the resources of the Guarantee Fund;
8) the resources of the Guarantee Fund may not be used for a
borrowing and lending purposes, as well as for issuing
guarantees.
[27 September 2007]
Section 51.2 Providing
Information to the Credit Register
[22 September 2011]
Chapter V
Co-operation with State Administration Institutions
Section 52. Obligations of the Road
Traffic Safety Directorate and the State Technical Supervision
Agency in the Field of Inspection and Control of Compulsory Civil
Liability Insurance of Motor Vehicle Owners
(1) Prior to technical inspection of a motor vehicle the Road
Traffic Safety Directorate and the State Technical Supervision
Agency shall examine the validity of the compulsory civil
liability insurance contract of the owner of the relevant motor
vehicle.
(2) Technical inspection shall not be performed if the civil
liability insurance of the motor vehicle owner has not been
insured.
[27 September 2007]
Section 53. Rights and Obligations
of the State Police in the Field of Compulsory Civil Liability
Insurance of Motor Vehicle Owners
(1) An employee of the State Police is entitled to ascertain
the existence of the validity of an insurance contract, using the
data which are available in the information system of the
compulsory civil liability insurance of the owners of motor
vehicles or on the basis of an insurance policy if such policy
has been issued.
(2) If it is determined in an inspection that the civil
liability of the owner of the motor vehicle has not been insured,
the State Police shall carry out the activities laid down in laws
and regulations, including take a decision to apply an
administrative penalty.
(3) Upon request of an insurer or the Motor Insurers' Bureau,
the State Police shall acquaint the insurer or the Motor
Insurers' Bureau with the information at the disposal thereof
regarding a road traffic accident free of charge and shall issue
a statement regarding the road traffic accident, as well as, if
necessary, issue copies of documents drawn up regarding the
relevant road traffic accident for a fee.
[27 September 2007; 22 September 2011]
Section 54. Co-operation with the
State Social Insurance Agency and Medical Treatment
Institutions
(1) Upon request of an insurer or the Motor Insurers' Bureau,
the State Social Insurance Agency shall provide information
regarding:
1) the amount of the State social insurance service and the
State social benefit calculated for the injured person for the
time period indicated in the application to enable the insurer
and the Motor Insurers' Bureau, in accordance with this Law, to
take a decision to pay an insurance indemnity;
2) the amount of the wage subject to insurance contributions
of the injured person for the time period indicated in the
application to enable the insurer and the Motor Insurers' Bureau,
in accordance with this Law, to take a decision to pay an
insurance indemnity;
3) the employer of such person with whom the driver of the
motor vehicle that caused the losses is in an employment or
service relationship and against whom the Motor Insurers' Bureau
is entitled to submit a subrogation action if the employer has
calculated social insurance contributions during the time period
indicated in the application.
(2) In order to take a decision on an insurance indemnity, an
insurer or the Motor Insurers' Bureau, which is covering
expenses, is entitled to;
1) request in writing and receive from a medical treatment
institution information regarding the medical treatment of a
person who has suffered in a road traffic accident, his or her
diagnosis of disease and prognosis, which is related to the
particular road traffic accident (the data that the referred to
persons have acquired regarding the treatment, disease diagnosis
and prognosis shall be confidential);
2) use opinions of forensic medical expert-examination only
with a written permission of the performer of procedures;
3) send the injured person to a medical examination that is
related to the health problems caused in the particular road
traffic accident.
[22 September 2011]
Section 55. Obligations and Rights
of the State Border Guard in Inspecting the Compulsory Civil
Liability Insurance of Motor Vehicle Owners when Motor Vehicle
Crosses the State Border of the Republic of Latvia that is
simultaneously the External Border of the European Economic
Area
If it is determined in an inspection that the civil liability
of the owner of the motor vehicle registered in the Republic of
Latvia has not been insured, or the driver of such motor vehicle
that is normally based outside the territory of the European
Economic Area is unable to present a document that certifies the
validity of the contract of compulsory civil liability insurance
of the motor vehicle owner:
1) the entry of the motor vehicle into the Republic of Latvia
is permissible only after the civil liability of the owner of
such vehicle is insured;
2) when the motor vehicle is departing from the Republic of
Latvia the State Border Guard shall carry out the activities laid
down in laws and regulations, including take a decision to apply
an administrative penalty.
[22 September 2011]
Section 56. Obligations and Rights
of the State Border Guard in Performing Inspection of the
Compulsory Civil Liability Insurance of Motor Vehicle Owners in
the Territory of the Republic of Latvia
If it is identified in an inspection that the civil liability
of the owner of the motor vehicle registered in the Republic of
Latvia or such motor vehicle that is usually based outside the
territory of the Republic of Latvia has not been insured, the
State Border Guard shall carry out the activities laid down in
laws and regulations, including take a decision to apply an
administrative penalty.
[22 September 2011]
Section 57. Prevention of Road
Traffic Accidents
(1) Prevention of road traffic accidents is a set of road
traffic safety measures in order to:
1) ensure preventive measures in the field of road traffic
safety;
2) inform and educate road traffic participants;
3) reduce the frequency of the occurrence of road traffic
accidents;
4) prevent and reduce the consequences of road traffic
accidents.
(2) Every quarter insurers shall transfer two per cent of the
amount of the signed insurance premiums indicated in an insurance
contract at the time of entering into it by deducting the part of
the premium refunded to the owner of the motor vehicle or - in
the event of the lease of the motor vehicle - the holder of the
motor vehicle indicated in the motor vehicle registration
certificate in the cases laid down in Section 10 of this Law into
the account of the Motor Insurers' Bureau for the performance of
measures to prevent road traffic accidents. In the cases referred
to in Section 14, Paragraphs two and three of this Law a signed
insurance premium is a premium that is calculated at the time of
entering into an insurance contract, deducting from it the
reduction in the payment of the insurance premium which is
compensated to the insurer by the Motor Insurers' Bureau from the
Guarantee Fund.
(3) A consultative body - the Road Traffic Safety Council -
established by the Cabinet shall decide on the utilisation of the
money, the purpose of operation of which shall be to promote the
development and implementation of a unified State policy in the
field of road traffic safety in order to increase the overall
level of road traffic safety within the State, taking into
account that not less than half of the resources referred to in
Paragraph two of this Section is utilised by institutions
subordinated to the Ministry of the Interior.
[14 March 2019]
Chapter VI
Information System of the Compulsory Civil Liability Insurance of
the Owners of Motor Vehicles
Section 58. Structure of the
Information System of the Compulsory Civil Liability Insurance of
the Owners of Motor Vehicles
(1) The information systems and registers of insurers, the
Motor Insurers' Bureau, the Road Traffic Safety Directorate, the
State Technical Supervision Agency, the Road Transport
Administration, the Ministry of the Interior, and other
institutions shall form the information system of the compulsory
civil liability insurance of the owners of motor vehicles - an
aggregate of structured information technologies and databases
(hereinafter - the information system).
(2) The data which are necessary for ensuring the functioning
of the compulsory civil liability insurance of the owners of
motor vehicles shall be aggregated and processed in the
information system.
(3) The Cabinet shall determine the amount and the types of
data necessary for the operation of the information system, as
well as the procedures for the exchange and utilisation of the
data. The obligation to provide the abovementioned information
shall be included in agreements that the institutions referred to
in Paragraph one of this Section mutually enter into.
[27 September 2007; 14 March 2019]
Section 59. Rights and Obligations
of an Insurer and the Motor Vehicles' Bureau in Processing Data
in the Information System
(1) Prior to entering into an insurance contract, an insurer
has the right to receive from the information system the
necessary data for entering into the insurance contract and
determining the amount of the insurance premium, including the
data on the number of insurance indemnities paid during the term
of validity of the previous insurance contracts, the number of
cases identified in accordance with the procedures laid down in
laws and regulations, when administrative offences which attract
the registration of the violations carrying points and criminal
offences against the safety of traffic have been committed while
driving a motor vehicle.
(2) An insurer, upon entering into an agreement, has a duty to
transfer the data regarding the respective contract to the
information system.
(3) An insurer or the Motor Insurers' Bureau has the right to
receive from the information system the necessary data for
administering the insurable event, and the duty to transfer to
the information system data regarding:
1) reported insurable events;
2) the decision taken on the insurance indemnity.
(4) The Cabinet shall determine the amount of and the
procedures for the provision of the data referred to in this
Section.
(5) Upon obtaining and processing the data of natural persons,
an insurer or the Motor Insurers' Bureau shall conform to the
requirements laid down in the Personal Data Processing Law.
(6) After transferring the data to the information system any
adjustments thereto may only be made by the insurer who has
transferred them, or the Motor Insurers' Bureau.
[27 September 2007; 14 March 2019]
Transitional Provisions
1. With the coming into force of this Law, the Law on
Compulsory Civil Liability Insurance of Owners of Motor Vehicles
(Latvijas Republikas Saeimas un Ministru Kabineta
Ziņotājs, 1997, No. 8, 2000, No. 3, No. 23) is repealed.
2. A complex and a group contract that has been entered into
before the coming into force of this Law shall be effective until
the expiration of the time period indicated in such contract.
3. The Motor Insurers' Bureau shall cover to an insurer a
share of a paid insurance indemnity from the Guarantee Fund that
exceeds the limit of insurer liability effective at the time an
insurance policy was issued, if the insurance policy was issued
and entered into effect before the coming into force of this Law
or will enter into effect within a period of one month after the
coming into force of this Law.
4. Section 19, Paragraph two of this Law shall come into force
on 1 May 2005.
5. Section 24 of this Law shall come into force on 1 January
2005.
6. Section 48 of this Law shall come into force with the day
when the property, obligations, as well as the security of
obligations of the Traffic Bureau are transferred to the Motor
Insurers' Bureau.
7. Up to the coming into force of the relevant Cabinet
Regulations, the following Cabinet Regulations shall be in force,
insofar as they are not in conflict with this Law:
1) Cabinet Regulation No. 179 of 13 May 1997, By-law of the
Fund for Protection of Interests of Insurance Takers of
Compulsory Civil Liability Insurance of Motor Vehicle Owners;
2) Cabinet Regulation No. 180 of 13 May 1997, By-law of the
Guarantee (Reserve) Fund of Compulsory Civil Liability Insurance
of Motor Vehicle Owners;
3) Cabinet Regulation No. 252 of 15 July 1997, Regulations
regarding Technical Expert-Examination of Motor Transport in
Compulsory Civil Liability Insurance of Motor Vehicle Owners;
4) Cabinet Regulation No. 308 of 26 August 1997, Regulations
regarding Procedures for Calculation of Insurance Indemnity for
Dependants Due to the Death of the Person Injured in Road Traffic
Accident;
5) Cabinet Regulation No. 31 of 2 February 1999, Regulations
regarding Co-operation in the Field of Information Exchange
regarding Compulsory Civil Liability Insurance of Motor Vehicle
Owners;
6) Cabinet Regulation No. 209 of 2 June 1998, Procedures by
which Compensation of Losses is Paid to Sickness Funds and the
Central Fund of State Compulsory Health Insurance Due to Medical
Treatment of Persons Injured in Road traffic Accidents.
8. The resources accumulated in the Fund for the Protection of
the Interests of Insurance Takers of Compulsory Civil Liability
Insurance of Motor Vehicle Owners shall be included in the
Guarantee Fund by 1 January 2005 in accordance with the
procedures laid down by the Cabinet.
9. Until the day when the property, obligations, as well as
the security of the obligations, of the Traffic Bureau is
transferred to the Motor Insurers' Bureau, Cabinet Regulation No.
182 of 13 May 1997, Traffic Bureau By-law, shall be in force,
insofar as this Regulation is not in conflict with this Law.
10. The Motor Insurers' Bureau shall be the successor of the
property, obligations, as well as the security of the
obligations, of the Traffic Bureau from the day when the Motor
Insurers' Bureau is registered in accordance with the procedures
laid down in laws and regulations.
11. The Cabinet shall determine the procedures by which the
Ministry of Finance shall, in accordance with the requirements of
this Law, transfer the property, obligations, as well as the
security of the obligations, of the Traffic Bureau to the Motor
Insurers' Bureau by 1 September 2004. Until the day of
acquisition of the property, obligations, as well as the security
of the obligations, of the Traffic Bureau, the Traffic Bureau
shall perform the functions of the Motor Insurers' Bureau
determined in this Law.
12. Resources of the Guarantee Fund shall be stored in the
Treasury until 31 December 2005.
13. The amendments to Section 15, Paragraph one, Clauses 1 and
2 of this Law regarding the new wording of these Clauses shall
come into force on 1 June 2012. Until 31 May 2012, upon the
occurrence of an insurable event, an insurer or the Motor
Insurers' Bureau shall cover the losses without exceeding the
determined limit of insurer liability:
1) from 1 November 2007 until 30 November 2009:
a) for indemnification of personal losses - up to 350 000
euros equivalent in lats in accordance with the currency exchange
rate set by the Bank of Latvia on the date on which the decision
to pay the insurance indemnity to each injured person is taken,
but for a road traffic accident - up to 2 500 000 euros
equivalent in lats in accordance with the currency exchange rate
set by the Bank of Latvia on the date on which the decision to
pay the insurance indemnity is taken,
b) for indemnification of property loss - up to 100 000 euros
equivalent in lats in accordance with the currency exchange rate
set by the Bank of Latvia on the date on which the decision to
pay the insurance indemnity is taken, regardless of the number of
third persons;
2) from 1 December 2009 until 31 May 2012:
a) for indemnification of personal losses - up to 2 500 000
euros equivalent in lats in accordance with the currency exchange
rate set by the Bank of Latvia on the date when the decision to
pay the insurance indemnity is taken, regardless of the number of
injured persons;
b) for indemnification of property loss - up to 500 000 euros
equivalent in lats in accordance with the currency exchange rate
set by the Bank of Latvia on the date on which the decision to
pay the insurance indemnity is taken, regardless of the number of
third persons;
[27 September 2007]
14. Sections 23.1 and 51.2 of this Law
shall come into force on 1 January 2008 and shall apply to
insurable events occurring after 31 December 2007.
[27 September 2007]
15. Amendments to Section 44, Paragraph two, Clause 6 of this
Law regarding the provision of information in accordance with
Section 51.2 of this Law shall come into force on 1
January 2008.
[27 September 2007]
16. Section 4.1 of this Law, amendments regarding
the new wording of Section 8, amendments to Section 16, Paragraph
one, Section 17, Paragraph six and Section 53, Paragraph one of
this Law shall come into force on 1 January 2008.
[27 September 2007]
17. Until legal regulation governing the status, foundation
and operational basis of agricultural farms and fish farms is
ensured in accordance with the Law on Agricultural Farms and Fish
Farms, the reduction in the payment of the insurance premium
referred to in Section 14, Paragraph three of this Law shall also
apply to the owner of an agricultural farm or fish farm as long
as the agricultural farm or fish farm is not registered with the
commercial register.
[23 October 2008]
18. Section 25, Paragraph two (new wording) and also Section
25, Paragraphs three, four, and five of this Law shall be
applicable to insurable events which have occurred starting from
1 January 2017.
[23 November 2016]
19. The limit of insurer liability referred to in amendments
to Section 15, Paragraph one, Clauses 1 and 2 of this Law shall
be applicable to road traffic accidents which have occurred
starting from 1 January 2019.
[14 March 2019]
20. If a motor vehicle has been transferred to a commercial
undertaking (merchant) for trade in accordance with the
procedures laid down in laws and regulations until the day of
coming into force of Section 3, Paragraph three, Clause 1,
Sub-clause "a" of this Law, the owner of the motor vehicle or -
in the event of the lease of the motor vehicle - the holder of
the motor vehicle indicated in the motor vehicle registration
certificate (if he or she or it has entered into an appropriate
insurance contract) has the right to terminate an insurance
contract before the expiration thereof by submitting to an
insurer a written application for the termination of an insurance
contract before the expiration thereof and a justification for
the termination of such contract - evidence that the motor
vehicle has been transferred to a commercial undertaking
(merchant) for trade in accordance with the procedures laid down
in laws and regulations until the day of coming into force of the
legal norm referred to in this Clause. In such case the owner of
the motor vehicle or - in the event of the lease of the motor
vehicle - the holder of the motor vehicle indicated in the motor
vehicle registration certificate (if he or she or it has entered
into an appropriate insurance contract) has the right to claim
such share of the paid insurance premium that corresponds to the
remaining time period from the date of the submission of the
claim until the expiry date of the insurance contract and from
which not more than five per cent has been deducted from the
share of the insurance premium for the remainder of the period,
provided that the payment of the insurance indemnity has not been
claimed on the basis of the relevant insurance contract.
[14 March 2019]
21. Sections 3.1, 41.1, and
41.2 of this Law shall come into force on 1 February
2021, but amendments to Section 9, Paragraph one of this Law
(regarding the new wording of the introductory part and the
deletion of Paragraph one, Clause 3) and Section 9, Paragraph
1.1 - on 1 July 2021.
[17 December 2020]
22. An insurance contract entered into in relation to the
military combat vehicle shall be deemed to have been terminated
on the day when Section 3.1 of this Law comes into
force. If the insurance contract has been terminated in the case
referred to in this Paragraph and the National Armed Forces
submit to the insurer a written claim for the reimbursement of
the share of the paid insurance premium, the National Armed
Forces shall have the right to such share of the paid insurance
premium that corresponds to the remaining time period from the
date of the submission of the claim until the expiry date of the
insurance contract and from which not more than five per cent has
been deducted from the share of the insurance premium for the
remainder of the period, provided that the payment of the
insurance indemnity has not been claimed on the basis of the
relevant insurance contract.
[17 December 2020]
23. Section 14, Paragraph two, Clause 3 and the second
sentence of Paragraph 2.1 of this Law shall come into
force on 1 July 2021.
[17 December 2020]
24. Until 1 September 2021, the Cabinet shall submit to the
Saeima an assessment regarding the legal framework
specified in Section 14 of this Law regarding the reduction in
the payment of the insurance premium and the possible phasing-out
of the reduction in such payment and the subsequent solution.
[17 December 2020]
25. Section 9.2 of this Law shall come into force
on 1 July 2022.
[9 December 2021]
26. Amendments to Section 10 of this Law regarding the new
wording of the Section shall come into force on 1 July 2022 and
shall apply to the insurance contracts entered into from 1 July
2022.
[9 December 2021]
Informative Reference to
Directives of the European Union
[27 September 2007; 22 September
2011]
This Law contains norms arising from:
1) Council Directive 72/166/EEC of 24 April 1972 on the
approximation of the laws of Member States relating to insurance
against civil liability in respect of the use of motor vehicles,
and to the enforcement of the obligation to insure against such
liability;
2) Second Council Directive 84/5/EEC of 30 December 1983 on
the approximation of the laws of the Member States relating to
insurance against civil liability in respect of the use of motor
vehicles;
3) Third Council Directive 90/232/EEC of 14 May 1990 on the
approximation of the laws of the Member States relating to
insurance against civil liability in respect of the use of motor
vehicles;
4) Council Directive 92/49/EEC of 18 June 1992 on the
coordination of laws, regulations and administrative provisions
relating to direct insurance other than life assurance and
amending Directives 73/239/EEC and 88/357/EEC (third non-life
insurance Directive);
5) Directive 2000/26/EC of the European Parliament and of the
Council of 16 May 2000 on the approximation of the laws of the
Member States relating to insurance against civil liability in
respect of the use of motor vehicles and amending Council
Directives 73/239/EEC and 88/357/EEC (Fourth motor insurance
Directive);
6) Directive 2005/14/EC of the European Parliament and of the
Council of 11 May 2005 amending Council Directives 72/166/EEC,
84/5/EEC, 88/357/EEC and 90/232/EEC and Directive 2000/26/EC of
the European Parliament and of the Council relating to insurance
against civil liability in respect of the use of motor
vehicles;
7) Directive 2009/103/EC of the European Parliament and of the
Council of 16 September 2009 relating to insurance against civil
liability in respect of the use of motor vehicles, and the
enforcement of the obligation to insure against such
liability.
The Law shall come into force on 1 May 2004.
The Law has been adopted by the Saeima on 7 April
2004.
President V. Vīķe-Freiberga
Rīga, 27 April 2004
1 The Parliament of the Republic of
Latvia
Translation © 2022 Valsts valodas centrs (State
Language Centre)
