Motor Third Party Liability Insurance

Why Do I Need Motor Third Party Liability Insurance?

Motor third party liability insurance (motor insurance) is compulsory insurance.

The policyholder is insured against the possible damage that they can cause to third parties (e.g. other vehicles, people, buildings, etc.) while driving their vehicle.

If you should cause an accident with your vehicle, motor insurance does not cover the damage done to your vehicle, but the damage done to third parties. Motor insurance covers only your medical expenses.

Motor insurance has been made compulsory so that you yourself would not have to cover the losses mentioned above.

We will help you choose the best motor insurance!

All matters regarding motor insurance are regulated by Motor Third Party Liability Insurance Act.

What Should I Remember Entering Motor Third Party Liability Insurance?

Motor insurance contract can be concluded by:

• the owner of the vehicle
• a person indicated on the registration certificate of a vehicle as the user of the vehicle
• a person authorized to use the vehicle on the basis of an authorization document
• a person authorized to use the vehicle on the basis of an authorization document

What Influences Motor Third Party Liability Insurance Premiums?

• Vehicle type and purpose of its use – e.g. car, motorcycle, truck (lower premiums apply to tractors, motorcycles and trailers, premiums are higher for trucks transporting dangerous goods and taxis);
• Vehicle registration address – the address of the holder of the registration certificate or the address of the lessee (user responsible) if the vehicle is being used according to a lease contract.
• Technical characteristics of the vehicle – engine power (kw), maximum authorized weight (kg) for trucks and trailers, and number of seats for buses (the smaller any of these indicators are, the smaller the premium);
• Vehicle-person insurance history;
• Policyholder's age and length of driving experience (not in all insurance companies);

Where Does Motor Third Party Liability Insurance Apply?

If an ordinary insurance policy has been issued, then the insurance cover applies in countries belonging to the European Economic Area and in Switzerland.

PS! As the ordinary insurance policy is in Estonian, it is recommended to own/have the green card while going to European Union and European Economic Area countries.

With the Green Card, insurance cover is valid as indicated on the card:

• in countries that are contracting parties of the European Economic Area and in Switzerland;
• in all countries that recognize the green card.

Contracting parties of the European Economic Area are: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, France, Germany, Greece, Hungary, Ireland, Iceland, Italy, Liechtenstein, Luxembourg, Latvia, Lithuania, Malta, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, Romania, Slovakia, Slovenia, Finland and the United Kingdom.

Countries currently recognizing the green card are: contracting parties of the European Economic Area, Albania, Andorra, Bosnia and Herzegovina, Byelorussia, Croatia, Israel, Iran, Morocco, Moldavia, Macedonia, Serbia and Montenegro, Tunis, Turkey, the Ukraine, Switzerland, Russia (from 1st January 2009).

How to Choose the Right Insurance Company?

• Let your broker know whether you are interested in added value benefits that come with motor third party liability insurance or only in the ordinary cover.
• Similar protection is provided by all insurance companies, when it comes to motor third party liability insurance.
• Insurance companies offer additional features in claims handling or emergency services.
• Make sure you have fully understood all the concepts as well as your rights and obligations. You should know what is the insured object, what is considered an insured event, what are the principles of compensation and dispute settlement procedures.

What to Do if the Vehicle Is Temporarily Not Being Used?

A vehicle subjected to mandatory insurance should have a valid motor third party insurance contract at all times. When participating in traffic, you should have a valid insurance policy.

If the vehicle is temporarily not used in road traffic, then the contract should be made premium-free.

Premium-free contract is still valid, but the policyholder does not have an obligation to pay the premium. During the premium-free period of the contract, it is not possible to have a valid insurance policy.

You can also make the contract premium-free already in the course of its initial conclusion. Insurance premiums will not be charged in the premium-free period of the contract.

What Are the Possible Consequences of Using a Vehicle Without Policy in Road Traffic?

If the policyholder participates in traffic during premium-free period (i.e. without a valid insurance policy), then the insurer has the right to charge triple amount of the insurance premium for the premium-free period.

If traffic damage is caused during the same period, then the insurer has the right to charge six times the premium or to demand full reimbursement of the compensation as well as of the claims handling expenses.

In addition, the police has the right to impose a fine prescribed by law on the driver of the vehicle, if the vehicle participates in road traffic during premium-free period of the insurance contract.

For example, the fine for driving a vehicle without a valid insurance policy can reach up to 100 fine units (LKS § 66-1).

Keep in mind that vehicle roadworthiness tests cannot be completed without a valid insurance policy.

What is the Green Card?

A green card is the form of a policy relating to an ordinary motor third party liability insurance contract, applicable in the foreign countries specified on the card. No additional insurance premium or other charge is not required for issue of a green card to a policy holder of an ordinary contract. A green card is not issued for the duration of a premium-free period of a contract.

From 1 May 2004, the Estonian green card is not obligatory, but it is recommended in some countries. Green card is obligatory, if you are driving to a country that is not an EU Member State or a contracting party of the European Economic Area.

Countries, where the green card is recommended, when driving a car: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, France, Germany, Greece, Hungary, Ireland, Iceland, Italy, Liechtenstein, Luxembourg, Latvia, Lithuania, Malta, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, Romania, Slovakia, Slovenia, Finland and the United Kingdom.

Countries, where the green card is mandatory: Albania, Andorra, Bosnia and Herzegovina, Byelorussia, Croatia, Israel, Iran, Morocco, Moldavia, Macedonia, Romania, Serbia and Montenegro, Tunis, Turkey, the Ukraine, Switzerland, Russia.

Who Can Be the Policyholder?

The policyholder shall be the owner of a vehicle. A person indicated on the registration certificate of a vehicle as the user of the vehicle, a person authorized to use the vehicle on the basis of an authorization document and other persons holding an authorization document to enter into the contract are authorized to represent the policyholder when the contract is entered into with regard to the vehicle.