Motor Insurers‘ Bureau of the Republic of Lithuania

Information on compulsory motor third party liability insurance for the drivers

• Insurance object of Compulsory motor third party liability is the civil liability of vehicle owners or possessors to pay for the damage caused in a road accident. The insurance contract shall cover the civil liability of the legitimate possessor of a vehicle against third parties (but not against his/her own person and property or the property of his/her family members), which can occur while possessing the vehicle specified in the insurance certificate (policy).  
  Vehicles used in the territory of the Republic of Lithuania must be covered by compulsory insurance against civil liability of users of motor vehicles. A vehicle normally based in the territory of the Republic of Lithuania must be covered by compulsory insurance against civil liability of users of motor vehicles for as long as the vehicle is registered. 

• Insurance contract. A standard insurance contract and a frontier insurance contract shall provide insurance coverage in any state of the European Economic Area and Switzerland either to the extent required by legal acts on compulsory insurance against civil liability of users of motor vehicles of the state concerned or to the extent provided in the Law on Compulsory Third Party Liability Insurance of the Republic of Lithuania, depending where the coverage sums are greater. A standard insurance contract under which a Green Card has been issued shall additionally provide insurance coverage in the foreign states indicated on the Green Card.

• Amount of cover. According to the Law on Compulsory Motor Third Party Liability Insurance of the Republic of Lithuania, till 10^th June 2012 the amount of cover is:
                    for personal injury - 2.500.000 Euro per single road accident  and
                    for damage to property - 500.000 Euro per single road accident.
  A single road accident means an accident occurring for the same cause, even if more than one injured third party have claims in respect of such road accident.  

• Insurance premiums. Amounts of the insurance  premiums are fixed by the Insuer. Insurance companies have the right to determine specific insurance premiums taking into account the risk factors.

• Claims handling is performed by insurance companies – members of the Bureau. The insurer must pay the compensation for damage not later than within 30 days after the date on which all the necessary information for claim handling was received.

• The Green Card system. The Green Card system is a scheme for cooperation between the countries of Europe and is extended to certain countries outside Europe. The purpose of the system is to facilitate the free movement of vehicles over borders and to protect the interests of the victims of foreign registered vehicles, according to the basic objectives of the system, which are: that Third party victims of road traffic accidents should not suffer from the fact that the cause of injury or damage to them was a visiting motorist, rather than a motorist resident in the same country; and that a visiting motorist should not be impeded by the need to obtain insurance cover at each of the frontiers of the countries visited. The Green Card is a motor third party liability insurance policy valid in 45 different countries. It is a liability insurance on the ground of which the loss caused by the vehicle of the insured is indemnified to the injured person in compliance with the rules of the country where the accident took place.
  
  Lithuanian Bureau was accepted as a member of the Green Card system on the 30^th May, 2003. This membership came into effect on the 15^th October, 2003.