Motor Third Party Liability

MTPL

1. Insurance object – object of the motor third party liability is the civil liability of the vehicle owner and user for any damage or injury caused by motor vehicle accident within the territorial limits of the insurance coverage.

2. Insurer – International Insurance Company Joint Venture “TRANSELIT” Joint Stock, legal entity licensed to practice the type of insurance, a part of the insurance contract for a fixed payment (the premium) paid by another party assumes the obligation to compensate the damage to the goods or life and health damage caused to the driver and passengers by the fault of the insured

3. Insured- legal entity or individual with legal capacity, who reached 18 years and owns a vehicle as ownership or as a possession under the certificate issued by the owner of the vehicle for contracting of insurance contracts.

4. Territoriality – motor third party liability contract is valid throughout the country.

5. Shelf life – motor third party liability contract is contracted for a period of 12 months. It is allowed to contract insurance contracts with insurance periods less than 12 months for special vehicles, equipped by the manufacturing plant or legally reassembled with devices and installations for seasonal agricultural work, for snow removal and other similar works, registered with temporary numbers, registered abroad or in other cases provided by law.

6. Insured Risks – motor third party liability insurer offers compensation for damage done by the Insured, is responsible, under law, to the third parties injured by the vehicle accident as well as for the expenses related to the event incurred by the Insured or injured person in lawsuit.

7. Insured Sum – the maximum liability of the insurer, which can not exceed the limits set out in art. 14 of Law no. 414 – XVI from 22.12.2006 ”Regarding the motor third party liability insurance”. That is 1 million MDL, regardless of the number of victims, for material damages, 1 million MDL per victim or 5 million MDL, whatever the number of victims is for personal injuries.

8. Compensation insurance – insurer offers compensation if the damage occurred due to the fault of the insured or the vehicle user, and if, at the time of the accident:
a) the user is not included in the insurance contract between the owner and the insurer;
b) the user or the insured do not possess driving license on the necessary category;
c) the user or the insured has not complied with the legal technical obligations on the condition and safety of the vehicle.
In case of personal injury or death, insurance compensations are granted both for people outside the vehicle that caused the accident, and for the people in that car except its user.
Family members of the insured, of the vehicle user or of any other person whose liability is engaged in a motor vehicle accident and is covered by compulsory insurance of civil liability are not excluded, because of this kinship, from insurance beneficiaries for their personal injuries.
In damage or destruction of property the insurance compensation shall be granted for goods outside the vehicle which caused the accident, except the ones specified in Article 16 and for goods in that vehicle, except that they were not carried under a contractual agreement with the owner or user of the vehicle, and if they did not belong to the owner or user responsible for the accident.
The damage caused in an accident by a trailer will be covered by motor third party liability of the owner of the vehicle if the trailer:
a) is towed by the vehicle; or
b) was split of the car and continued to move.
Damages caused by a trailer will be covered by motor third party liability of its owner if the trailer:
a) is not towed by the vehicle; or
b) is separated from the vehicle and is stationed
Compensations are determined on the basis of a written agreement between the insured, the injured person or his legal representative and the insurer or, if any agreement was not reached, through final, irrevocable court. If the parties have caused the accident or damage increase by mistake, each of them will be obligated to compensate only part of the damage attributable to him. In this case, the extent of liability of each party to the vehicle accident will be determined by documents and other means of proof.

9. Damages not paid by insurance – motor third party liability insurer does not pay compensation for:
a) part of the damage exceeding the maximum limits of compensation insurance at the time of the accident, regardless of the number of people injured and the persons responsible for the damage;
b) damages that occurred at the working place caused by devices or installations fitted to the vehicle, used as machinery or work equipment;
c) damages caused by accident occurring during loading and unloading operations, these accidents are risks of professional activity;
d) damages due to transport of dangerous goods (radioactive, flammable, explosive), the latter causing or exacerbating serious damage, if the risk of transporting of such products is subject to compulsory insurance;
e) damage related to environmental pollution due to an accident;
f) damages caused by the loss or destruction of securities, cash, precious stones, metal and precious stones objects, works of art and other objects of intellectual property;
g) reducing of the value of goods after repair;
h) Damages that occurred while using motor vehicles in races and sports training organized in places specially provided for them;
i) damages in cases where the liability of the insurer has not started or has stopped;
j) damages to property belonging to individuals or legal entities insured of civil liability if they were caused by a motor vehicle in their possession;
k) the amounts that the user responsible for the damage is obliged to pay to the owner, who entrusted him the insured vehicle, for damage or destruction;
l) amounts to recover moral damages resulting from the accident.
To recover damages excluded from motor third party liability, the injured person is entitled to sue civil suit in court against the person responsible for the accident.

10. The insurer`s right of regress action – the insurer has the right to submit regress action to the person responsible for the damages when:
a) the accident was caused intentionally;
b) during the accident, the vehicle was driven while drunken or under the influence of drugs;
c) the person responsible for the accident was driving the vehicle without a driving license or violating the rules concerning driving license;
d) the person responsible for the accident is not included in the insurance contract between the owner of the motor vehicle and the motor vehicle insurer, except the situation provided in Article 8. (2) b) of the Law. 414 – XVI from 22.12.2006 ”Regarding the motor third party liability insurance”;
e) contrary to the legal stipulations regulating the road traffic on national and local roads person responsible for the accident left the place;
f) the user does not have the vehicle technical inspection certificate at the time of the accident;
g) the accident occurred through the fault of a crime author who tries to escape prosecution.

11. The insurance premium – payment for insurance. The basic insurance premium related to internal and external motor third party liability is established and updated at least once a year by the supervisory authority in accordance with actuarial methods approved through its normative documents. The insurance premium is calculated based on the basic insurance premium, to which are applied correction coefficients determined according to normative documents and bonus-malus system. It is prohibited to insurers to charge insurance premiums below the amount of calculated premiums depending on basic insurance premium and correcting coefficients, with the following exceptions:
a) The insurer may offer discounts up to 25% of the insurance premiums to retired individuals and individuals with mobility impairments who own motorcycles and cars adjusted to their infirmity. Retired individuals are not eligible for the premium reduction if in the contract are indicated people who are not retired as admitted to drive the vehicle or if in the contract there is no indication of the people who may use the vehicle (unlimited users);
b) At signing domestic motor third party liability with legal entities operating international transport of goods and passengers involved in the TIR system – License and INTER – BUS, the insurers can offer discounts up to 60% of the calculated premium insurance only if the international carriers own insurance certificate “Green Card” valid for a period of 12 months;
c) In determining insurance premiums that the insured will pay the insurer applies bonus-malus system, according to the procedure established by the supervisory authority, which provides annual reductions of 5%, but not more than 50% over 10 years, insurance premiums of motor third party liability for the users who, over 10 years, have not had vehicle accidents and increase the insurance premium for users who have had motor vehicle accidents.


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