MTPL is a mandatory form of insurance for car owners in Latvia, which protects third parties or victims in the event of an accident. MTPL guarantees that damages caused to third parties as a result of a car accident will be compensated regardless of the financial situation of the person at fault.
MTPL – Motor Third Party Liability insurance in Latvia
The principle of compulsory motor liability insurance is simple - every vehicle owner must purchase an insurance policy, and this must be done before using the car. The MTPL policy guarantees that in the event of an accident, victims will receive compensation for their losses.
Losses covered by MTPL, includes both material damage and bodily injury or death of victims. This insurance does not cover damage caused to the insurer's own vehicle. This type of risk is covered by CASKO insurance, which is a voluntary form of insurance.
The size of the MTPL insurance premium depends on several factors, such as the technical parameters of the vehicle, the driver’s place of residence, his age and driving experience, as well as the history of previous claims under MTPL. Insurers offer different rates, so before purchasing a policy, you can compare its cost and choose the best offer.
Motor Third Party Liability Insurance is usually valid for one year, after which it needs to be renewed. The insurance also comes into force outside the borders of Latvia, including all countries of the European Economic Area, as well as countries that have signed the Green Card system.
If a traffic accident occurs, the MTPL policyholder must inform the insurer about the incident and its circumstances. Contact information should also be obtained from victims and witnesses. The insurer then assesses the damage and pays compensation in accordance with the terms of the insurance policy.
It is important to emphasize that compulsory motor insurance does not protect the car owner from liability if the accident occurred intentionally or if alcoholic beverages or other substances were consumed while driving. In such circumstances, the insurer has the right to recover from the driver the expenses incurred as a result of the accident.
MTPL – Motor Third Party Liability is an important mechanism for improving road safety and one of the main elements of the road user responsibility system. It not only provides financial protection to accident victims, but also reduces the financial impact on drivers themselves by protecting them from potentially large direct cost claims in the event of an accident.
