LTAB: Last year, 1007 decisions were made on the payment of compensation to victims of road traffic accidents from the Guarantee Fund

Last year, 1,007 decisions were made on the payment of compensation to victims of road traffic accidents from the Guarantee Fund, according to the data of the Latvian Motor Insurers’ Bureau (LTAB).

The Office noted that from 2015 to 2019, the average number of decisions on compensation payments from the Guarantee Fund was relatively constant – 1221 cases per year. This year, 797 decisions have been made in nine months.

Meanwhile, the average amount of compensation per road accident paid from the Guarantee Fund is increasing year by year. If in 2015 they were 1178 euros, then last year – 1369 euros, but this year in nine months – 1662 euros, informed the Chairman of the Board of LTAB Jānis Abāšins.

Last year, the Guarantee Fund managed to recover 1,185,866 euros from vehicle owners who caused a road traffic accident with an uninsured vehicle. Of the amount recovered, 47% was reimbursed voluntarily by the perpetrators of road accidents, including by concluding regular reimbursement agreements over a longer period of time, in 23.9% of cases the losses were recovered through sworn bailiffs, and in 0.2% of cases cases were assigned.

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Abashin reminded that it is a mistake to assume that the recovery of the Guarantee Fund is limited to recent road accidents. ‘Any car owner who engages in traffic without an MTPL and causes a road accident will in any case have to reimburse the damage caused to others from his own pocket immediately or over a longer period, which means that the basic amount will also include the costs of administration or recovery. and court expenses, ”informed the Chairman of the Board of LTAB.

Read more: Four pedestrians and one cyclist were injured in road accidents last day

The information gathered by LTAB shows that in the last five years, the largest indemnity for an accident caused by an uninsured vehicle is 52,000 euros. The amount of compensation for the second largest traffic accident caused by a driver of a vehicle without MTPL is 49,000 euros. The third largest amount of loss is 33,000 euros for an accident caused without insurance. All the mentioned road traffic accidents occurred in 2018.

The MTPL law stipulates that if a traffic accident is caused by an uninsured vehicle, the victims must cover the losses from the Guarantee Fund, but later the amount of losses is recovered from the person who caused the traffic accident – the owner or driver of the uninsured vehicle.

The Guarantee Fund was established in 1997 and its primary task is to ensure the stability of the MTPL industry. The guarantee fund serves as a guarantee of protection and a guarantee that every victim of a road traffic accident will receive the compensation specified by law. The resources of the Guarantee Fund consist of one-time contributions made by insurers, regular monthly deductions from MTPL premiums, additional contributions made by insurers, funds recovered by LTAB for recourse to losses caused by road traffic accidents, as well as income from storage and investment of fund resources.

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