According to the data of the Latvian Motor Insurers’ Bureau (hereinafter – LTAB), last year 1007 decisions were made regarding the payment of compensation to victims of road traffic accidents (RTA) from the Guarantee Fund (hereinafter – GF). The MTPL law stipulates that – if a RTA is caused by an uninsured vehicle, the losses caused to the victims will be covered from the GF, but later the amount of losses will be recovered from the RTA trigger – the owner or driver of the uninsured vehicle.
“In the period from 2015 to 2019, the average number of decisions on the payment of claims from GF has been relatively constant – 1221 cases per year. In 9 months of this year, 797 decisions were made. In the meantime, it should be emphasized that the average amount of remuneration per RTA paid from GF is increasing year by year. If in 2015 they were 1178 EUR, then last year – 1369 EUR, while in 9 months of this year already 1662 EUR, ”says LTAB Board Chairman Jānis Abāšins.
GF was established in 1997 and its primary task is to ensure the stability of the MTPL industry in the country. The GF serves as a guarantor of protection and assurance that every victim of a RTA will receive the statutory compensation. GF funds consist of one-time contributions made by insurers, regular monthly deductions from MTPL premiums, additional contributions made by insurers, funds recovered by LTAB recourse for losses caused as a result of RTA, as well as income from storage and investment of fund resources.
Last year, GF managed to recover EUR 1,185,866 from vehicle owners who caused RTAs with uninsured vehicles. 47% of the recovered amount has been reimbursed voluntarily by the causes of RTA, incl. by concluding agreements on the repayment of funds in a certain period of time, in 23.9% of cases the losses have been recovered with the help of sworn bailiffs, but in 0.2% of cases cases have been assigned.
J.Abāšins reminds that it is a mistake to assume that the recovery of GF funds is applied only to recent RTAs. ‘Any car owner who engages in traffic without a MTPL and causes a RTA will in any case have to reimburse the damage caused to others from his own pocket immediately or over a longer period of time, which means that the basic amount will also include the costs of administration or recovery and court. expenses. Therefore, make sure that MTPL is always purchased on time, which is the easiest way to avoid additional problems, ”informs the Chairman of the Board of LTAB.
The information gathered by LTAB shows that in the last five years the largest indemnity for an accident caused by an uninsured vehicle is 52 thousand EUR. The second largest RTA caused by the driver of a vehicle without MTPL, the amount of compensation is 49 thousand EUR. The third largest amount of losses is 33 thousand EUR for an accident caused without insurance. All the mentioned RTAs took place in 2018. “According to the experience of LTAB, such losses caused by unscrupulous car owners, for many years or even a lifetime, cause significant financial and legal problems for these people,” explains J. Abāšins.
In 1997, the MTPL system was introduced in Latvia. The right to perform MTPL insurance in Latvia is AAS “Balta”, AAS “Baltijas Apdrošināšanas Nams”, AAS “BTA Baltic Insurance Company”, “Compensa Vienna Insurance Group” ADB Latvian branch, “ERGO Insurance” SE Latvian branch, ADB “Gjensidige” Latvian branch , If P&C Insurance AS Latvian branch and Swedbank P&C Insurance AS Latvian branch.
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