OFFICIAL TRANSLATION
REPUBLIC OF LITHUANIA
LAW ON COMPULSORY INSURANCE AGAINST CIVIL LIABILITY IN RESPECT OF THE USE OF MOTOR VEHICLES
14 June 2001 No IX-378
Vilnius
(A new edition of 5 March 2004 - No IX-2041)
CHAPTER ONE
GENERAL PROVISIONS
Article 1. Objective and Purpose of the Law
1. The Law on Compulsory Insurance against Civil Liability in Respect of the Use of Motor Vehicles has the objective of establishing the legal framework and principles for the functioning of the system of compulsory insurance against civil liability in respect of use of motor vehicles.
2. The provisions of this Law shall not apply where motor vehicles are used for sport competitions, for practicing, for exhibitions, for driving training in restricted areas and in autodromes.
3. The Law shall not apply with respect to motor vehicles which belong to military units and are used by them, by military personnel or by civil servants assigned to military forces if all of the following conditions are satisfied:
1) military forces, military personnel and civil servants assigned to military forces enter from other states that are, together with the Republic of Lithuania, parties to international treaties regarding the status of forces;
2) an international treaty of the Republic of Lithuania establishes a procedure of compensation for damage which is different from that laid down in this Law;
4. The damage caused by motor vehicles listed in paragraph 3 of this Article in the territory of the Republic of Lithuania shall be compensated in accordance with the procedure established in international treaties of the Republic of Lithuania and in the legal acts of the Republic of Lithuania.
5. The provisions of this Law shall implement the legal acts of the European Union listed in the Annex to this Law.
Article 2. Definitions
1. “Insured vehicle” means a motor vehicle covered by a valid contract of compulsory insurance against civil liability in respect of the use of motor vehicles.
2. “Permanent resident of the Republic of Lithuania” means a citizen of the Republic of Lithuania, a citizen of another state or a person without citizenship whose data on his place of residence in the Republic of Lithuania has been entered in the population register of the Republic of Lithuania or who is acknowledged, in accordance with the Civil Code of the Republic of Lithuania and the procedure established in other legal acts, to have permanent residence in the Republic of Lithuania.
4. “Council of Bureaux” means a body which acts as the coordinator of the Green Card system and which groups together all national insurers’ bureaux of the countries that have joined the system.
5. “Policyholder” means a person who has approached the insurer to conclude a contract of compulsory insurance against civil liability in respect of the use of motor vehicles or who has concluded such an insurance contract with the insurer.
6. “Insurer” means a person (an insurance undertaking of the Republic of Lithuania, an insurance undertaking of another Member State of the European Union or a branch of a foreign insurance undertaking established in the Republic of Lithuania) which conducts, in accordance with the procedure established in legal acts, the business of compulsory insurance against civil liability in respect of the use of motor vehicles in the Republic of Lithuania and which is a member of the Bureau.
7. “Insured event” means a road accident which leads to the obligation to pay compensation under this Law.
8. “Member State of the European Union” means the Republic of Lithuania or any other Member State of the European Union. For the purpose of this Law, “Member State of the European Union” shall also mean member countries of the European Economic Area.
9. “Group insurance contract” means a standard insurance contract concluded with the farmers of farms registered in the manner established in the Law on the Farmer’s Farm and with other agricultural economic entities covered by the Law on Agricultural and Rural Development.
10. “Standard insurance contract” means a contract of compulsory insurance against civil liability in respect of the use of motor vehicles concluded with respect to a motor vehicle normally based in the territory of the Republic of Lithuania.
11. “Territory in which the vehicle is normally based” means the territory of the state in which the registration plate of the vehicle is issued; or, in cases where no registration is required for certain types of vehicle, the territory of the state in which an insurance plate or a distinguishing sign analogous to the registration plate is issued. In cases where the vehicle is not registered or where neither a registration plate nor insurance plate nor distinguishing sign is required for certain types of vehicle, the territory of the state in which the user of vehicle is permanently resident is considered as the territory in which the vehicle is normally based.
12. “Compensation” means an amount of money or any other agreed form of payment payable by the insurer or the Bureau to the injured third party to compensate for personal injury, damage to property and (or) non-pecuniary damage.
13. “Another Member State of the European Union” means a Member State of the European Union other than the Republic of Lithuania.
14. “National insurers’ bureau” means a professional organisation which is established in accordance with Recommendation No 5 adopted on 25 January 1949 by the Road Transport Sub-committee of the Inland Transport Committee of the United Nations Economic Commission for Europe and which groups together insurance undertakings which are authorized to conduct the business of compulsory insurance against civil liability in respect of the use of motor vehicles in that state.
15. “Non-pecuniary damage” shall be physical pain, mental suffering, inconveniences, mental shock, emotional depression, humiliation, impairment of reputation, diminution of possibilities to associate with others and other non-pecuniary consequences arising from personal injury or loss of life in a road accident.
16 “Injured third party” means a person who has suffered damage and who is therefore entitled to compensation in accordance with the procedure established in this Law.
17 “Frontier insurance contract” means a contract of compulsory insurance against civil liability in respect of the use of motor vehicles concluded with respect to vehicles that are normally based outside the territory of the Republic of Lithuania.
18. “Supervisory authority” means an authority that exercises supervision of insurance activities in the Republic of Lithuania in accordance with the Law on Insurance of the Republic of Lithuania.
19. “Vehicle” means any motor vehicle the registration of which is required and which is intended for travel on land, but not running on rails, also mopeds, trailers or semi-trailers.
20. “User of vehicle” means a person who owns and/or uses a vehicle on the basis of ownership, trust, rent, loan for use or any other legitimate basis. A natural person who drives a vehicle either legally or illegally shall also be considered as the user of vehicle.
22. “Internal Regulations” means the rules approved by the Council of Bureaux that regulate the relations between national insurers’ bureaux.
23. “Damage” means damage caused in a road accident or damage that arises later as a consequence of a road accident.
24. “Personal injury” means damage to health and/or damage incurred by loss of life. The size of damage to person shall be assessed in accordance with the procedure established by the law.
25. “Damage to property” means damage to property of the injured third party. The size of damage to property shall be assessed in accordance with the procedure established by the law.
26. “Green Card” means an international certificate of insurance (policy) issued on behalf of a national insurers’ bureau participating in the Green Card system.
27. “Green Card system” means an international system of compulsory insurance against civil liability in respect of the use of motor vehicles.
28. “Compensation body” means a body set up in the manner established by the legal acts of the respective Member State of the European Union which is responsible for compensating injured third parties where a road accident occurs in a Member State of the European Union other than the Member State in which the injured third party is permanently resident or in a foreign state if its national insurers’ bureau is a member of the Green Card system and if the damage is caused by an insured vehicle normally based in the territory of a Member State of the European Union.
Article 3. Compulsory Insurance Cover against Civil Liability in respect of the Use of Motor Vehicles
1. Compensation under this Law shall be paid to cover the damage suffered by injured third parties when the persons who caused the damage with the vehicle owned or used (hereinafter “used”) by them become liable under civil liability.
2. A contract of compulsory insurance against civil liability in respect of the use of motor vehicles (hereinafter referred to as the “insurance contract”) shall provide coverage against civil liability in respect of the use of a vehicle specified in the insurance contract and/or certificate (policy) of compulsory insurance against civil liability in respect of the use of motor vehicles (hereinafter referred to as the “insurance certificate”) for damage, except for the case referred to in paragraph 3 of this Article.
3. Neither the insurer nor the Bureau shall pay compensation in accordance with the procedure established in this Law for damage to the user responsible for the damage or to the vehicle used by him or to the property in the vehicle as well as to other property of the policyholder or the owner of the vehicle concerned.
Article 4. Obligation to Conclude an Insurance Contract
1. Vehicles used in the territory of the Republic of Lithuania must be covered by compulsory insurance against civil liability in respect of the use of motor vehicles. A vehicle normally based in the territory of the Republic of Lithuania must be covered by compulsory insurance against civil liability in respect of the use of motor vehicles as long as the vehicle is registered.
2. Responsibility for concluding an insurance contract in accordance with the procedure established in Article 43 of this Law shall fall on the owner of vehicle (hereinafter referred to as the “person responsible for the conclusion of an insurance contract”). Where a person uses a vehicle under a leasing (financial lease) contract or a lease-option contract or under any other similar contract, the responsibility to conclude an insurance contract shall fall on that person. Where the vehicle is co-owned by several persons, the responsibility to conclude an insurance contract shall be joint and several among all the co-owners, unless they agree otherwise.
Article 5. Types of Insurance Contract
Types of insurance contracts shall be as follows:
Article 6. Conclusion of Insurance Contract
1. A standard insurance contract and a frontier insurance contract shall be concluded in accordance with this Law, the Civil Code of the Republic of Lithuania, the Law on Insurance, standard terms and conditions of an insurance contract approved by the supervisory authority and other legal acts of the Republic of Lithuania, unless otherwise provided in this Law. Insurers who issue Green Cards shall act also in accordance with the Internal Regulations, other legal acts regulating the Green Card system, the decisions of the Council of Bureaux and shall take into account the terms and conditions of the agreements concluded between the Bureau and the national insurers’ bureaux of other states.
2. Insurers shall conclude insurance contracts with persons specified in paragraph 2 of Article 4 of this Law who have submitted application in person or through their representatives and have presented all the required information and documentation necessary for the conclusion of a contract. A refusal by the insurer to conclude an insurance contract may be contested in court.
3. Before concluding an insurance contract, the policyholder must provide the insurer with correct information requested by the latter and the documents necessary for the conclusion of an insurance contract. The insurer shall have the right to verify that the submitted information is accurate and correct.
4. A standard insurance contract shall be concluded where the vehicle is normally based in the territory of the Republic of Lithuania. A standard insurance contract shall be concluded before the registration of the vehicle, unless the vehicle concerned is already covered by insurance. Where no registration is required for a vehicle, an insurance contract may be concluded before the vehicle is put to use.
5. Where a standard insurance contract is concluded before the registration of the vehicle, the insurer shall, after having received the policyholder’s application and other documents necessary for the conclusion of an insurance contract, issue an insurance certificate without indicating the vehicle registration number, unless the registration number is known. The policyholder shall submit the insurance certificate to the body responsible for the registration of vehicles. The body responsible for the registration of vehicles shall enter the registration number into the insurance certificate presented by the policyholder and shall notify the insurer thereof within 3 working days in writing or any other equivalent form.
6. Should the policyholder wish to have, under a concluded or to be concluded standard insurance contract, insurance coverage in foreign states participating in the Green Card system, the insurer shall additionally issue a Green Card to the policyholder according to the terms and conditions of the insurance contract.
7. A group insurance contract shall be concluded with respect to several vehicles to be covered by a single insurance certificate. A group insurance contract may be concluded with respect to five vehicles at the most, with only one of them being a passenger car. A group insurance contract shall be subject to all the terms and conditions applied to a standard insurance contract as provided in this Law.
8. A frontier insurance contract shall be concluded where the user intends to participate in the road traffic of a Member State of the European Union with a vehicle that is normally based outside the territory of the Republic of Lithuania if the user of such vehicle does not have any other contract of compulsory insurance against civil liability in respect of the use of motor vehicles valid in the Republic of Lithuania.
9. All declarations and notifications by the parties to the insurance contract in relation to the insurance contract shall be made in writing. Should the address of the policyholder’s place of residence or establishment change and should the policyholder fail to notify the insurer thereof, any declarations and notifications sent by the insurer to the policyholder’s last known address by registered mail shall be deemed to be delivered to the policyholder.
10. The user shall not have the right to conclude several concurrently valid contracts of compulsory insurance against civil liability in respect of the use of motor vehicles with respect to one and the same vehicle. Where several insurance contracts have been concluded, the original insurance contract shall terminate as from the moment when a new one concluded with respect to the same vehicle comes into force. During the period of validity of an insurance contract, the insurer may not conclude another insurance contract with the same insurance coverage for the same or overlapping period.
11. The text of the insurance contract and the data indicated in the insurance certificate as required by subparagraphs 1-10 of paragraph 1 of Article 6.991 of the Civil Code shall be typed. Insurance certificates have to be filled in with the data from the database of compulsory insurance against civil liability in respect of the use of motor vehicles.
Article 7. Termination and Expiry of Insurance Contract
1. The policyholder shall have the right to terminate a standard insurance contract by giving the insurer a written notice at least 15 days prior to the desired termination date. When the request to terminate an insurance contract is made on the basis of failure by the insurer to execute or properly execute the insurance contract, where such failure is a material breach of contract as determined in accordance with Article 6.217 of the Civil Code, the insurance contract shall terminate as from the date indicated in the policyholder’s request. In both cases, the policyholder shall be reimbursed for the portion of the insurance premium related to the remaining period of validity of the insurance contract.
2. A standard insurance contract may be terminated at the insurer’s initiative on the basis of failure by the policyholder to execute or properly execute the insurance contract where such failure is a material breach of contract. In this case, the policyholder shall not be reimbursed for the insurance premium, unless otherwise provided in the insurance contract.
3. A frontier insurance contract may be terminated at the initiative of any party on the basis of failure by the other party to execute or properly execute the insurance contract where such failure is a material breach of contract. Where the insurance contract is terminated at the policyholder’s request, the policyholder shall be reimbursed for the portion of the insurance premium related to the remaining period of validity of the insurance contract. Where the insurance contract is terminated at the insurer’s request, the policyholder shall not be entitled to such reimbursement.
Article 8. Change of Owner of Insured Vehicle
1. Where the owner of an insured vehicle changes, the policyholder must forward the documents certifying the conclusion of an insurance contract to the new owner of vehicle. In this case, the new owner of the vehicle shall take over the policyholder’s rights and obligations under the insurance contract and shall, without delay but not later than within 15 days of transfer of vehicle ownership, notify the insurer in writing thereof and submit his personal data. If the new owner of the vehicle fails to notify the insurer about the transfer of vehicle ownership, the insurer may treat it as failure to fulfil the obligation of notifying about the change of insurance risk. The new owner of the vehicle shall also have the right to terminate the insurance contract in accordance with the procedure established in paragraph 2 of this Article.
2. If the new owner of the vehicle terminates the insurance contract within 15 days of acquisition of the vehicle, the insurance contract shall terminate after 15 days of acquisition of the vehicle, unless the policyholder and the insurer agree otherwise. In this case, the new owner of the vehicle shall be reimbursed for the portion of the insurance premium related to the remaining period of validity of the insurance contract.
3. If the new owner of the vehicle does not terminate the insurance contract within the period specified in paragraph 2 of this Article, the insurer shall have the right to increase the insurance premium on the basis that the insurance risk has increased whereas the policyholder shall have the right to request to reduce the insurance premium on the basis that the insurance risk has decreased.
Article 9. Entry into Force and Period of Validity of Insurance Contract
1. The insurance contract shall come into force upon the conclusion thereof and subject to the payment of insurance premium for the period indicated in the insurance certificate, except in the cases referred to in paragraphs 2 and 3 of this Article.
2. Where the insurer has indicated in the insurance contract a later date for the payment of insurance premium, the insurance contract shall come into force on the date of conclusion thereof.
3. The insurance contract may specify a date of entry into force of the insurance contract other than indicated in paragraphs 1 and 2 of this Article where, on the date of conclusion of the insurance contract, there already exists a valid insurance contract for the same vehicle.
4. A standard insurance contract shall be concluded for a term of twelve months. The insurer shall issue to the policyholder an insurance certificate certifying the conclusion of an insurance contract and the provision of insurance coverage. The insurance certificate shall also indicate its period of validity which shall not be shorter than 1 month and for which the insurance premium has been paid. During the period of validity of the insurance contract, several insurance certificates may be issued.
5. During the period of validity of the insurance contract, the insurer, at the policyholder’s request, shall release the policyholder from the obligation to pay insurance premiums under a valid insurance contract where the policyholder intends not to use the vehicle for a period longer than 1 month. The policyholder must provide assurance to the insurer that he will not use or let other persons use the vehicle specified in the insurance contract and may place, free of charge, the vehicle registration plate into the custody of the insurer. The period of release from the obligation to pay insurance premiums shall terminate as soon as the insurer issues a new insurance certificate at the policyholder’s request. Where an insurance premium is nevertheless paid for a period in respect of which the policyholder is released from the obligation to pay insurance premiums, the insurer shall extend the insurance contract by that period without requesting any additional premiums for that period. Where the policyholder is released from the obligation to pay insurance premiums, the insurer shall record it in the insurance certificate.
6. If, after the expiry of the validity of the insurance certificate as indicated therein, a new insurance certificate is not issued and a release from the obligation to pay insurance premiums has not been agreed between the policyholder and the insurer, the policyholder shall pay insurance premiums in the manner provided for in the insurance contract until the expiry of the insurance contract.
7. Upon the expiry of a standard insurance contract, its validity period shall be extended subject to the procedure and conditions established in the insurance contract.
8. The validity period of a standard insurance contract shall not be extended if:
1) there is an outstanding insurance premium due for previous periods under a valid insurance contract;
9. Where the validity period of a standard insurance contract is extended, the policyholder must pay the insurer an insurance premium as calculated by the insurer. In the case of failure to pay the insurance premium, the provisions of paragraphs 5-7 of Article 11 of this Law shall apply.
10. A frontier insurance contract shall be concluded for a period not shorter than 15 days and not longer than 90 days.
Article 10. Territorial Coverage of Insurance Contract
1. A standard insurance contract and a frontier insurance contract shall provide insurance coverage in any Member State of the European Union to the extent required by the legal acts of the respective Member State of the European Union regulating compulsory insurance against civil liability in respect of the use of motor vehicles or to the extent required by this Law, whichever is higher. A standard insurance contract under which a Green Card has been issued shall also provide insurance coverage in the foreign states indicated on the Green Card.
2. A standard insurance contract and a frontier insurance contract shall also be valid and shall provide insurance coverage in Switzerland in accordance with the Swiss laws. A standard insurance contract shall also provide insurance coverage under this Law for any damage suffered by injured third parties, permanently resident in a Member State of the European Union, during a direct journey between two territories in which the Treaty establishing the European Community is in force, if there is no national insurers’ bureau responsible for the territory which is being crossed.
3. Contracts of compulsory insurance against civil liability in respect of the use of motor vehicles concluded by the insurance undertakings or branches of other Member States of the European Union shall be recognised in the Republic of Lithuania and shall be deemed to be in compliance with the provisions of this Law.
Article 11. Sums Insured and Insurance Premiums
1. The sum insured under compulsory insurance against civil liability in respect of the use of motor vehicles shall be 500 000 euros for personal injury (including 500 euros for non-pecuniary damage) and 100 000 euros for damage to property in a single road accident, whatever the number of injured third parties.
2. A single road accident means an accident which occurred for same reason, even if more than one injured third party may pursue claims in respect of such a road accident.
3. The insurer shall pay compensation for the damage caused in another Member State of the European Union based on the sums insured in accordance with the legal acts of the Member State concerned or the sums insured as specified in paragraph 1 of this Article, whichever are higher.
5. Should the policyholder fail to pay the insurance premium in due time, the insurer shall have the right to charge late-payment interest of 0.04 percent on the overdue amount for each delayed day, unless otherwise provided in the insurance contract.
6. The insurer may not refuse to pay compensation in respect of an insured event which occurred in the period for which the policyholder failed to pay the insurance premium within the time limit set in the insurance contract or in the period for which the policyholder was released from the obligation to pay insurance premiums.
7. If the policyholder failed to pay, within the time-limit set in the insurance contract, the insurance premium for the insurance coverage provided under the insurance contract and if the vehicle covered by that insurance contract caused damage during the said period or the damage was caused during the period for which the policyholder was released from the obligation to pay insurance premiums, the insurer shall be entitled to claim reimbursement from the policyholder for the amounts paid by the insurer to the policyholder by way of compensation for damage.
Article 12. Obligations of Persons Involved in a Road Accident and of Injured Third Parties
1. Where a road accident occurs, the user of vehicle involved in the accident shall:
1) take all available and reasonable measures to reduce the potential damage, take all the measures necessary to provide medical aid to injured persons and protect their property as much as possible;
3) provide the information necessary to identify the insurer to other persons involved in the road accident;
4) within 3 working days from the road accident for which he is responsible, notify in writing the insurer who has covered his civil liability about the accident, unless he is unable to do so for serious reasons. The insurer who has covered his civil liability must be also informed about the road accident in those cases where the person responsible for the accident has not been established;
2. The user of vehicle involved in a road accident and persons claiming damages incurred in the road accident shall be obliged to submit to the insurer or to the Bureau any available evidence concerning the road accident and damage, to be cooperative in examining the circumstances of the accident and assessing the size of the damage, to follow the insurer’s or the Bureau’s instructions, if any, and to allow the insurer or the Bureau to investigate the causes of the damage incurred and assess the size of the damage.
Article 13. Claim for Damages
1. The injured third party may present a claim for damages to the person responsible for the damage (hereinafter referred to as the “liable person”), directly to the insurer of the liable person (hereinafter referred to as the “responsible insurer”), to the insurer’s representative appointed for the settlement of claims, or, in the cases referred to in Articles 17 and 18 of this Law, to the Bureau. Where civil liability of the liable person was insured by an insurance undertaking or a branch of another Member State of the European Union, the injured third party may present a claim for damages to that insurance undertaking, its claims representative or directly to the liable person.
2. Where the compensation paid by the insurer or the Bureau is not sufficient to cover the damage incurred to the injured third party because the damage exceeds the sum insured, the injured third party shall be entitled to claim the remainder from the liable person.
3. The claim for damages may not be presented to the Bureau if the injured third party has applied to court claiming damages suffered in a road accident from the liable person or the responsible insurer.
4. Where the liable person is unidentified but the damage has been caused in circumstances that prove civil liability of a user of vehicle, the injured third party whose property is damaged in the Republic of Lithuania shall be entitled to present a claim for damages to the Bureau. In this case, the Bureau shall examine the claim, assess the size of the damage and determine the amount of compensation to be paid in accordance with the procedure established in this Law; however the compensation shall be paid only after the liable person has been identified.
Article 14. Assessment of Damage
1. The injured third party claiming compensation from the insurer or the Bureau shall notify in writing, whether in person or through a representative, the responsible insurer or, in the cases referred to in Article 17 of this Law, the Bureau about the road accident within 3 working days of the accident, unless he is unable to do so for serious reasons. The injured third party shall submit, in person or through a representative, a claim for damages as well as any information and documents concerning the liable person, the circumstances of the road accident and the documents that prove the fact of the damage caused in the road accident, and shall also give access to the documents evidencing the circumstances, fact and size of the damage.
2. Where the damage is caused to property, the injured third party must keep the damaged vehicle or other property in the condition as immediately after the accident until it is inspected by a person authorised by the insurer or the Bureau and allow the person authorised by the insurer or the Bureau to inspect the damaged or destroyed property. The insurer and the Bureau shall, without delay but not later than within 3 working days of receipt of a written notice from the injured third party about the road accident, send an authorised person to inspect the damaged or destroyed property, write a survey report and shall present it to the injured party for signature.
3. The size of damage to property shall be assessed by the responsible insurer or, in the cases referred to in Article 17 of this Law, by the Bureau on the basis of reports and documents prepared by authorised persons and/or by property valuators which prove the circumstances, fact and size of the damage. Should the person authorised by the insurer or the Bureau fail to arrive within the time-limit specified in paragraph 2 of this Article, the injured third party shall have the right to contract a property valuator to assess the size of damage to property. In this case, the insurer or the Bureau must compensate the injured third party for reasonable expenses incurred by him when contracting the property valuator. Nevertheless the injured party has the right, at his own initiative and on its own account to apply to the experts to assess the size of the damage.
4. In case of personal injury, the size of damage shall include all of the damage sustained by a natural person. The damages shall comprise the loss of income that the injured person would have received had he not sustained bodily harm, and the expenses related with the rehabilitation of health (medical treatment costs, expenses incurred for additional nourishment, medicines, prosthetics, care of the injured person, acquisition of specialised transport means, retraining costs and other expenses necessary for the rehabilitation of health).
5. The damages incurred by loss of life shall include funeral expenses and other related expenses as well as expenses related to loss of a breadwinner. Persons entitled to compensation for damage caused by loss of a breadwinner shall be compensated for that portion of the deceased person’s income which they received or were entitled to receive when the deceased person was alive. Persons who were maintained by a breadwinner or at the time of his death were entitled to such maintenance (minor children, spouses, parents incapable of work or other actual dependants incapable of work), also the children of the deceased born after his death shall have the right to compensation for damage.
6. Damage to person shall be assessed by the responsible insurer or, in the cases referred to in Article 17 of this Law, by the Bureau on the basis of documents and information which prove the circumstances, fact and size of the damage as well as on the basis of medical examination reports. On the basis of the conclusions reached by institutions or establishments entitled to assess the damage to health, the insurer or the Bureau shall have the right to send the injured third party for medical examination and shall be obliged to compensate for examination expenses.
7. The injured third party shall be entitled to present claims for non-pecuniary damages to the insurer or, in the cases referred to in Article 17 of this Law, to the Bureau. If the insurer and the injured third party do not agree with the amount of compensation for non-pecuniary damage, the injured third party shall be entitled to apply to court. The persons specified in paragraph 5 of this Article shall also be entitled to compensation for non-pecuniary damage.
Article 15. Claims Representatives
1. The insurer shall, in accordance with the procedure established in the Law on Insurance of the Republic of Lithuania, appoint its claims representatives in all of the other Member States of the European Union. The claims representatives shall be responsible for the payment of compensation to injured third parties where all of the following conditions are satisfied:
1) the injured third party has suffered damage in a Member State of the European Union other than the state of his permanent residence or in a foreign state the national insurers’ bureau of which has joined the Green Card system and the injured third party is permanently resident in a Member State of the European Union;
2) civil liability of the liable person is covered by an insurer or its branch based in a Member State of the European Union other than the state of permanent residence of the injured third party;
2. The claims representative shall be permanently resident or established in the Member State of the European Union where he is appointed. The choice of its claims representative shall be at the discretion of the insurer. The claims representative may work for one or more insurers. He must be capable of examining cases in the official language(s) of the Member State of the European Union where the injured third party is permanently resident.
Article 16. Principles of Paying Compensation
1. The responsible insurer or the Bureau shall, within the sums insured as specified in Article 11 of this Law, pay compensation if the user of vehicle incurs civil liability for the damage caused to the injured third party.
2. The responsible insurer shall pay compensation to the injured third party if the user of vehicle incurs civil liability for the damage caused to the injured third party when using an insured vehicle, irrespective of whether the user acted in conformity with the terms and conditions of the insurance contract, except in the cases referred to in paragraphs 1 and 2 of Article 21 of this Law, and irrespective of whether the policyholder provided the insurer with all the information necessary for the conclusion of an insurance contract prior to its conclusion.
4. In accordance with the procedure established in this Law, the insurer or the Bureau shall pay compensation if the claim for damages is presented within one year from the date when the damage was caused or within one year from the date on which the injured third party learned or had to learn of the damage but not later than within 4 years from the date of the road accident concerned.
5. Compensation for the damage caused by a towed vehicle shall be paid according to the insurance contract covering the towing vehicle provided that the towed vehicle was connected to the towing vehicle at the time of the road accident. If the towed vehicle was not coupled with the towing vehicle at the time of the road accident or got disconnected from the towing vehicle immediately before the road accident, compensation shall be paid according the contract of insurance against civil liability in respect of the use of the towed vehicle where the user of the towed vehicle incurs civil liability in respect of the damage.
Article 17. Compensation Payable by the Bureau
1 The Bureau shall pay compensation to third parties injured in road accidents occurring in the territory of the Republic of Lithuania in the cases where:
1) damage is caused by an identified liable person with an uninsured identified vehicle, provided that the user of vehicle incurs civil liability in respect of the damage;
2) an unidentified liable person causes personal injury and/or loss of life, provided that the damage is caused in circumstances proving the civil liability of the user of vehicle;
3) damage is caused by an identified liable person who, at the time when the damage is done, is covered by compulsory insurance against civil liability in respect of the use of motor vehicles, but the responsible insurer is the subject of bankruptcy proceedings.
2. The Bureau shall pay compensation under paragraph 1 of this Article to injured third parties who are permanently resident in the Republic of Lithuania or another Member State of the European Union, except in the cases referred to in paragraphs 1, 3 and 4 of Article 21 of this Law. The Bureau shall also pay compensation to injured third parties permanently resident in a foreign state if the national insurers’ bureau of the state in which the injured third party is permanently resident has signed the Internal Regulations or an agreement with the Bureau on the recognition of reciprocal settlement of claims.
3. The Bureau shall pay compensation for the damage caused in a road accident in the territory of the Republic of Lithuania if the civil liability of the liable person is covered by an insurance undertaking of another state which has issued a Green Card valid in the Republic of Lithuania, provided that the national insurance bureau of the state whose insurance undertaking issued the Green Card has signed the Internal Regulations or an agreement with the Bureau on the recognition of reciprocal settlement of claims, except in cases where the damage has already been compensated by the insurance undertaking which insured the liable person’s civil liability or by its claims representative.
4. The Bureau shall pay compensation for the damage caused in another Member State of the European Union in accordance with the legal acts of that other Member State of the European Union (the national insurers’ bureau of which has signed the Internal Regulations) if the liable person whose vehicle is normally based in the territory of the Republic of Lithuania is not covered by compulsory insurance against civil liability in respect of the use of motor vehicles. The principles of payment of compensation laid down in this paragraph shall also apply if the responsible insurer is the subject of bankruptcy proceedings. The Bureau shall, acting in conformity with the Internal Regulations, pay compensation in other cases as well.
5. The Bureau shall reimburse the sum claimed from it by a compensation body of another Member State of the European Union which has paid it by way of compensation to the injured third party if all of the following conditions are satisfied:
2) the liable person has his civil liability covered by an insurer or a branch based in the territory of the Republic of Lithuania;
3) the vehicle of the liable person is normally based in the territory of the Republic of Lithuania;
4) within three months from the date of presenting a claim for damages to the responsible insurer or its claims representative, the insurer or its claims representative has not issued a reasoned reply to the claim or the insurer has failed to appoint a claims representative in another Member State of the European Union in which the injured third party is permanently resident.
6. The Bureau shall pay compensation according to subparagraph 3 of paragraph 1 of this Article to injured third parties instead of the following members of the Bureau:
1) insurance undertakings or branches of insurance undertakings of foreign states in accordance with their insurance contracts governed by the law of the Republic of Lithuania;
Article 18. Claims Handled and Settled by the Bureau as Compensation Body of the Republic of Lithuania
1. The Bureau shall act as a compensation body in the Republic of Lithuania and shall handle and settle claims for damages and pay compensation when the injured third party suffers damage in another Member State of the European Union or in a foreign state the national insurers’ bureau of which has joined the Green Card system if all of the following conditions are satisfied:
2. On the basis of paragraph 1 of this Article, the injured third party may present a claim for damages to the Bureau subject to either of the following conditions:
1) within three months from the date of presenting the claim for compensation to the responsible insurer of another Member State of the European Union or its claims representative, the said insurer or its claims representative has failed to give a reasoned reply to the claim;
2) the insurer of another Member State of the European Union which has covered the civil liability of the liable person has failed to appoint a claims representative in the Republic of Lithuania, provided that the injured third party has not presented a claim directly to the responsible insurer or has presented a claim directly to the responsible insurer but has not received a reply within 3 months.
3. The Bureau shall also settle claims for damages and pay compensation when the injured third party permanently resident in the Republic of Lithuania has suffered damage in another Member State of the European Union if:
1) the insurance undertaking which has covered the civil liability of the liable person is not identified within two months from the date of the road accident;
4. A claim may be presented to the Bureau after the expiry of the time limit specified in paragraphs 2 and 3 of this Article. The Bureau shall examine the claim for damages and take a decision regarding the payment of compensation within two months of the date when the claim was presented. Where it emerges that the responsible insurer or its claims representative has provided a reasoned reply regarding the payment of compensation, the Bureau shall terminate the examination of the claim. The Bureau shall pay compensation not later than within three months from the date of receipt of the claim for damages.
5. The Bureau shall, without delay but not later than within 5 working days from the date of receipt of the claim for damages from the injured third party (presented in accordance with paragraph 1 of this Article), notify the responsible insurer of another Member State of the European Union or its claims representative in the Republic of Lithuania, the compensation body of another Member State of the European Union and, if known, the person who caused the accident about the claim received and of the time-limits for the settlement of that claim.
Article 19. Procedure for the Payment of Compensation
1. The responsible insurer, its claims representative or the Bureau (except in the case referred to in paragraph 4 of Article 18 of this Law) shall pay compensation within 30 days of the date when the claim was presented.
2. If, within the time-limit specified in paragraph 1 of this Article, it is impossible to investigate the circumstances as necessary to establish the fact of the insured event and to assess the size of the damage, compensation shall be paid within 14 days of the date when the investigation of such circumstances could have been completed by making a reasonable effort but not later than within 3 months of the date when the claim was presented (except where damages are awarded by a decision in criminal, administrative or civil proceedings). Where compensation is awarded in criminal, administrative or civil proceedings, it shall be paid within 14 days from the date of receipt of an effective court decision, judgement or ruling.
3. The responsible insurer, its claims representative or the Bureau shall, within 30 days of the date when the claim was presented (or within 3 months in the cases referred to in paragraph 2 of this Article), make a reasoned offer of compensation or provide a reasoned reply and evidence releasing from the obligation to pay compensation or entitling to reduce the compensation payable.
4. If the responsible insurer, its claims representative or the Bureau fail to keep to the time-limits specified in paragraphs 1 to 3 of this Article, they shall be obliged to pay late-payment interest of 0.04 percent on the overdue amount for each delayed day. The supervisory authority may impose sanctions on the responsible insurer or its claims representative as set forth in the Republic of Lithuania Law on Insurance.
5. Compensation shall be paid after the fact of the insured event has been established and the size of the damage assessed, provided that the road accident was reported to the police and provided that the injured third party submitted to the insurer or the Bureau any available evidence of the road accident and the damage, followed the insurer’s or the Bureau’s instructions, if any, provided the insurer or the Bureau with access to any documents that could prove the circumstances, fact and size of the damage and made it possible to investigate the causes of the damage incurred in the road accident and assess the size of the damage, kept the damaged vehicle or other property in the condition as immediately after the accident subject to Article 14 of this Law and presented a claim for damages within the time-limit specified in paragraph 4 of Article 16 of this Law. If the injured third party has failed to perform or properly perform his obligations set forth in this paragraph and if such failure affected the investigation of the circumstances in which the damage was caused or resulted in an increase of damage, the insurer or the Bureau may reduce the compensation payable.
6. The amount payable by the insurer or the Bureau by way of compensation to the third party injured in a road accident shall not be higher than sufficient to cover the damage which was caused in the road accident and which is supported by evidence and shall not exceed the sums insured as specified in Article 11 of this Law; the insurer or the Bureau shall have the right to reject invalid claims for compensation of the damage caused in the road accident. At the request of the injured third party, the insurer or the Bureau shall remit the payable sum directly to the repair shop repairing the damaged property in question, which has been chosen by the injured third party. An insurer or the Bureau shall remit the payable sum to this repair shop not later than one working day after the damaged property was repaired and the payment order was presented.
7. In cases where several third parties are injured and the sum insured is not sufficient to cover the damage, the insurer or the Bureau shall pay compensation in proportion to the damage suffered by each injured third party.
8. If, after the compensation has been paid, it emerges that there are other injured third parties who are entitled to compensation for the damage caused in the road accident and who have not received it, the insurer or the Bureau shall pay compensation to these parties without exceeding the remainder of the sum insured.
9. Where several persons are liable for the damage, respective insurers and the Bureau shall compensate the injured third party in proportion to the liability of the respective liable person.
10. Social insurance benefits payable upon personal injury or loss of life and a funeral grant payable in the cases provided for by the law shall be included in the amount of the compensation payable. Compensation paid by the insurer or the Bureau to the injured third party shall be reduced by the amount covered by social insurance and compulsory health insurance. Social insurance institutions which have effected the payment of social insurance benefits shall acquire, in accordance with the procedure set out in legal acts, the right of recourse against the responsible insurer or, if such does not exist, the liable person.
11. Where a claim of the injured third party has been satisfied under a voluntary insurance contract, the Bureau shall compensate for the portion of the damage that was not compensated under such claim. After the insurance undertaking has satisfied the claim of the injured third party under a voluntary insurance contract, it shall not be entitled to claim reimbursement for the amount so paid from the Bureau.
12. The Bureau may not request from the injured third party to prove in any way that the liable person is unable or refuses to compensate for damage.
13. In the event of a dispute between the insurer and the Bureau as to which of them should compensate the injured third party, the compensation shall be paid by the Bureau within 30 days of the date when the injured third party presented the claim to the Bureau pending resolution of the dispute. Where it is impossible to investigate the circumstances as necessary to determine the basis for and the amount of compensation within 30 days, the compensation shall be paid within the time limits specified in paragraph 2 of this Article. If, after the Bureau has paid the compensation, it emerges that the compensation should have been paid by the insurer, the insurer shall reimburse the Bureau for the compensation so paid and for any other amounts related to the payment of compensation.
14. Any disputes between the insurer or the Bureau and the injured third party shall be settled in court. Any dispute between consumers and insurers shall be examined in accordance with the procedure established in the Law on Insurance of Republic of Lithuania.
15. Within 15 days from the date of the road accident, the police shall provide the insurer or the Bureau with the information necessary to identify the liable person.
Article 20. Payment of Compensation Instead of Insurers in Bankruptcy
1. If the Bureau pays compensation instead of a member of the Bureau which is the subject of bankruptcy proceedings, the Bureau shall take over from the insurer any available documents proving the damage and shall, after having established the basis and the amount of compensation, pay the compensation to injured third parties. Where the Bureau takes over from the insurer the documents proving the damage, the injured third party shall be removed from the list of creditors of the insurer in bankruptcy. Where damage was caused and not reported to the insurer prior to bankruptcy proceedings, the Bureau shall accept notification about the damage and shall, after having established the basis and the amount of compensation, pay the compensation. In this case, the injured third party may not be entered into the list of creditors of the insurer in bankruptcy. The Bureau shall not be liable for the failure by such insurer to keep to the time limit for the payment of compensation.
2. In the case referred to in paragraph 1 of this Article, the Bureau shall be obliged to pay compensation within 30 days from the date of receipt of the documents pertaining to damage from the insurer. If it is impossible to investigate the circumstances as necessary to determine the basis for and the amount of compensation within 30 days, compensation shall be paid within the time-limits specified in paragraph 2 of Article 19 of this Law, however the Bureau shall pay compensation for the undisputable portion of the damage within 30 days from the date of receipt of the said documents from the insurer.
Article 21. Release from the Obligation to Pay Compensation
1. The insurer or the Bureau shall be released from the obligation to pay compensation if:
1) damage occurred as a result of war activities, terrorist attacks, nuclear power impact or state of emergency;
2. The insurer shall be released from the obligation to pay compensation to injured third parties who voluntarily entered the vehicle which caused the damage if the insurer can prove that they knew the vehicle was stolen.
3. The Bureau shall not pay compensation to the injured third party if the damage is compensated by the liable person or another person or if the injured third party was compensated for the damage by the insurer.
Article 22. Reimbursement of Compensation Paid by the Insurer
1. The insurer who has paid compensation shall be entitled to claim reimbursement of the amounts paid by way of compensation from the liable person if the latter:
1) was driving the vehicle under the influence of alcohol, narcotics, drugs or other intoxicating substances, or consumed alcohol or other intoxicating substances immediately after the accident and before the moment when the circumstances of the accident were investigated, or tried to escape a sobriety test;
2) was driving a vehicle which does not meet statutory technical requirements and this was the cause of the road accident;
3) was not in possession of a lawful authorisation to drive the vehicle or did not hold a licence permitting him to drive the vehicle concerned;
2. If the user of the insured vehicle failed to perform his obligations set forth in Article 12 of this Law or performed them improperly which resulted in an increase of damage through the fault of the user, the insurer shall be entitled to claim reimbursement of the sum paid by way of compensation or part thereof from the user. If the policyholder failed to perform his obligations under the insurance contract or performed them improperly, the insurer shall be entitled to claim reimbursement of the sum paid by way of compensation or part thereof from the policyholder. The amount of the reimbursement claimed by the insurer shall be determined by taking into account the degree of the failure to perform the obligations established, the causal relationship with the road accident, the size of the damage caused by failure to perform obligations, other relevant circumstances, and the Procedure for the Assessment of Damages and Payment of Compensation established by the Government of the Republic of Lithuania.
Article 23. Reimbursement of Compensation Paid by the Bureau
1. The Bureau shall be entitled to claim reimbursement of the sum paid by way of compensation from the person responsible for the damage or from the person who has failed to perform the obligation to conclude an insurance contract where the compensation was paid under subparagraph 1 of paragraph 1 of Article 17 of this Law.
2. The Bureau shall be entitled to claim reimbursement of the sum paid by way of compensation from the person responsible for the damage where the compensation was paid under subparagraph 2 of paragraph 1 of Article 17 of this Law.
3. After having paid compensation to injured third parties in accordance with Article 18 of this Law, the Bureau shall be entitled to claim reimbursement of the amounts paid by way of compensation and of other amounts related to the payment of compensation from the following institutions:
1) a compensation body of another Member State of the European Union in which the insurance undertaking of the liable person is established if the vehicle which caused the damage was insured but the insurance undertaking or its claims representative has not paid compensation for the damage;
2) a compensation body of another Member State of the European Union in which the vehicle of the liable person is normally based if the responsible insurer in the Member State of the European Union cannot be identified;
3) a compensation body of another Member State of the European Union in which the road accident occurred if the vehicle which caused the damage cannot be identified;
4. After having paid compensation to the injured third party, the Bureau shall be entitled to claim reimbursement of the amount paid by way of compensation and of other amounts related to the payment of compensation from the responsible insurer of another Member State of the European Union.
5. After having paid the amount claimed by a compensation body of another Member State of the European Union, the Bureau shall be entitled to claim reimbursement of the amount so paid from the uninsured liable person or the responsible insurer.
6. After having paid compensation instead of any of its members, the Bureau shall be entitled to claim reimbursement of the amounts so paid from the insurer concerned.
7. Where it becomes known, after the insurer or the Bureau has paid compensation or part thereof to the injured third party, that the injured third party provided false information which resulted in incorrect calculation of the compensation and illegal payment thereof in respect of damage or where the injured third party received compensation for damage from persons responsible for compensating the damage, the injured third party shall, at the Bureau’s or the insurer’s request, reimburse the compensation or part thereof.
Article 24. Motor Insurers’ Bureau of the Republic of Lithuania: Conception and Status
1. The Bureau is an association of insurers authorised to conduct the business of compulsory insurance against civil liability in respect of the use of motor vehicles in the Republic of Lithuania, established pursuant to Recommendation No 5 adopted on 25 January 1949 by the Road Transport Sub-committee of the Inland Transport Committee of the United Nations Economic Commission for Europe, which discharges the functions set forth in this Law.
Article 25. Amendments to the Statutes of the Bureau
Any amendments to the Statutes of the Bureau shall be coordinated with the Ministry of Finance before their registration in the Legal Entities Register.
Article 26. Functions of the Bureau
When implementing this Law, the Bureau shall perform the following functions:
1) coordinate the activities of the insurers related to compulsory insurance against civil liability in respect of the use of motor vehicles;
3) act as a compensation body, handle claims and pay compensations as required by the legal acts regulating the Green Card system;
4) collect information related to compulsory insurance against civil liability in respect of the use of motor vehicles, administer the database of compulsory insurance against civil liability in respect of the use of motor vehicles (hereinafter referred to as the “database”), manage the data in the database (including personal data);
5) organise and coordinate international cooperation in the field of compulsory insurance against civil liability in respect of the use of motor vehicles and conclude appropriate agreements;
6) perform the functions assigned to it as a member of the Council of Bureaux, fulfil commitments arising from agreements with the national insurers’ bureaux of other states, perform other functions as required by the legal acts regulating the Green Card system;
7) organise and coordinate the printing and distribution of Green Card forms valid in other states pursuant to the requirements of the legal acts regulating the Green Card system;
8) approve and recall the claims representatives of insurance undertakings of foreign states appointed for claims handling in the Republic of Lithuania;
10) formulate, together with other competent institutions, a common policy of compulsory insurance against civil liability in respect of the use of motor vehicles in Lithuania;
Article 27. Rights of the Bureau
1. When performing the functions assigned to it, the Bureau shall have the right to:
5) receive, free-of-charge, any information, including personal data, from state and municipal institutions and establishments as well as from other legal and natural persons, and store this information as necessary for discharging its functions prescribed in legal acts;
6) process personal data and provide information, including personal data, to third persons who have legitimate interest in being so informed, as necessary to ensure the proper functioning of compulsory insurance against civil liability in respect of the use of motor vehicles;
7) exchange information with the national insurers’ bureaux of other states as necessary to implement the legal acts regulating the Green Card system and to fulfil commitments arising from agreements with the national insurers’ bureaux of other states;
10) assign other persons to handle the claims falling within the scope of the Bureau’s competence and to pay compensation, defray the cost of administration of such damages and sign agreements necessary for the implementation of this right;
11) handle the claims caused by the users of vehicles, pay compensation and sign agreements necessary for the implementation of this right;
12) establish the procedure for handling the claims falling within the scope of the Bureau’s competence and for the payment of compensation, unless such a procedure is established in other legal acts;
Article 28. Database of Compulsory Insurance against Civil Liability in respect of the Use of Motor Vehicles
1. When performing the functions of an information centre, the Bureau shall ensure the coordination of collection of data specified in paragraph 3 of this Article and their communication to persons who are entitled to receive such information under this Law.
2. The Bureau shall manage the data stored in the database, including personal data, without the consent of the data subject with the purpose of ensuring that the system of compulsory insurance against civil liability in respect of the use of motor vehicles should function in compliance with the requirements of the legal acts of the Republic of Lithuania and international legal acts.
3. The database shall contain the following data:
1) the registration plate number and other identification data of a motor vehicle normally based in the territory of the Republic of Lithuania as well as data on the user of vehicle, such as his personal code (business code), full name (business name) and address of place of residence (establishment);
2) a list of vehicles which are exempt under the legal acts of the Republic of Lithuania and of other Member States of the European Union from the obligation to have compulsory insurance against civil liability in respect of the use of motor vehicles, and information as to who shall compensate the damage caused by such vehicles;
3) data on standard and frontier insurance contracts and certificates (number of the insurance certificate, period of validity of an insurance contract (where the period of validity of the certificate has expired, also the date of termination of the insurance cover), name of the insurer and other information specified in the insurance certificate);
6) data on institutions or organisations of other Member States of the European Union responsible for the compensation of damage caused to third parties injured in road accidents;
8) data on persons who caused road accidents and victims of the road accidents as well as information related to the damage done;
4. Data processed in the database shall be provided free-of-charge by establishments, institutions and organisations obliged by the legal acts of the Republic of Lithuania to register and process such data in the registers or databases administered or managed by them (hereinafter referred to as the “institutions providing data”), members of the Bureau, and data subjects. The institutions providing data shall transmit the data to the Bureau by electronic means. Data on the insurance contracts concluded and insurance certificates issued shall be transmitted by members of the Bureau to the Bureau by electronic means without delay and not later than within 5 days from the date of conclusion of an insurance contract. Other data shall be transmitted by members of the Bureau to the Bureau by electronic means at least twice a month. If the data change, the institutions providing data to the Bureau and members of the Bureau shall be obliged to update them.
5. The data in the database shall be preserved for a period of seven years after the termination of the insurance contract or the termination of the registration of the vehicle.
6. The Bureau shall provide the information stored in the database, including personal data, without the consent of the data subject to persons who have a legitimate interest in obtaining it (national insurers’ bureaux of other states under mutual agreements and commitments arising from the Bureau’s membership in the Council of Bureaux, information centres and compensation bodies of other Member States of the European Union, members of the Bureau, reinsurers, victims of road accidents, and other persons entitled to receive information of this type).
7. At the request of injured persons or persons entitled to compensation for damage, the Bureau shall provide them with access to any available data, provided that such persons indicate their legitimate interest in receiving such data, if:
8.: The injured third party who is permanently resident in the Republic of Lithuania or who has suffered damage caused by a vehicle normally based in the territory of the Republic of Lithuania or who has suffered damage in a road accident occurring in the territory of the Republic of Lithuania shall be entitled to immediately receive the following information from the Bureau:
3) full name or business name and address of the claims representative of the responsible insurer in the Member State of the European Union in which the injured third party is permanently resident;
5) where the damage is caused by a vehicle the user of which, under the legal acts of another Member State of the European Union, is exempt from the obligation to conclude an insurance contract in the state of registration, any available information about an authority or institution of another Member State of the European Union responsible for handling the claim.
Article 29. Members of the Bureau
1. Membership in the Bureau shall be open to insurers who are authorised, in accordance with the procedure established in legal acts, to conduct the business of compulsory insurance against civil liability in respect of the use of motor vehicles and who have paid the initial membership fee. The insurer who is authorised to conduct the business of compulsory insurance against civil liability in respect of the use of motor vehicles in the Republic of Lithuania may conduct such business only after the insurer becomes a member of the Bureau.
2. Members of the Bureau shall have equal rights when participating in the activities of the Bureau.
3. When participating in the activities of the Bureau, member of the Bureau shall have the following rights:
2) to have access to the Bureau’s documents and information that the Bureau possesses on the Bureau’s activities;
4) to take legal action to court to overturn the decisions or actions taken by the general meeting of members of the Bureau, the Council of the Bureau and the head of the Bureau where such decisions or actions are in conflict with legal acts;
5) to conclude a voting agreement or an agreement on the transfer of voting rights with another member of the Bureau;
4. Members of the Bureau shall:
1) act in accordance with the provisions of this Law and other legal acts, implement the decisions taken by the general meeting of members of the Bureau and the Council of the Bureau;
2) transfer to the Bureau contributions from the premiums of compulsory insurance against civil liability in respect of the use of motor vehicles (hereinafter referred to as “contributions by members of the Bureau”) in accordance with the procedure and in the amounts set forth by the Government or by an institution authorised by the Government;
3) provide, free-of-charge, the Bureau with information necessary for the performance of its functions;
4) reimburse the Bureau for the expenses related to claims handling and payment of compensation where the Bureau paid compensation for damage instead of the respective insurer;
5. Members of the Bureau may have other rights and obligations established in the Law on Associations and the Statutes of the Bureau.
6. The rights of a member of the Bureau shall be lost:
1) from the date on which the supervisory authority notifies the Bureau of the suspension or cancellation of the insurer’s authorisation to conduct the business of compulsory insurance against civil liability in respect of the use of motor vehicles, effected as a sanction against the insurer;
2) when the general meeting of members of the Bureau adopts a decision to revoke its rights as a member of the Bureau, taking into account its request to withdraw from the Bureau;
7. A member of the Bureau may withdraw from the Bureau not earlier than 6 months after giving a written notice and a written statement of withdrawal from the business of compulsory insurance against civil liability in respect of the use of motor vehicles to the general meeting of members of the Bureau. The decision regarding the removal of a member of the Bureau from membership in the Bureau shall be taken by the general meeting of members of the Bureau.
8. A member of the Bureau shall lose its right to participate in the management of the Bureau (to vote in decision-taking) if:
1) it fails to transfer contributions as a member of the Bureau or any part thereof to the Bureau within 5 days of the date set by the Government or by an institution authorised by the Government;
9. The right to participate in the management of the Bureau (to vote in decision-taking) shall be restored as soon as contributions are transferred and any late-payment interest is paid or information necessary for the Bureau to perform its functions is provided. The loss of the right to participate in the management of the Bureau (to vote in decision-taking) shall not release a member of the Bureau from its obligations as a member of the Bureau and its commitments under insurance contracts. If contributions are not transferred or the information necessary for the Bureau to perform its functions is not delivered within 25 calendar days of the date when the right to participate in the management of the Bureau (to vote in decision-taking) was lost, the Bureau shall notify the supervisory authority thereof and the latter shall take a decision on imposing sanctions provided for in the Law on Insurance. A member of the Bureau who has lost its rights as member of the Bureau subject to subparagraph 1 of paragraph 6 of this Article may be reinstated only by a decision of the supervisory authority.
Article 30. Management of the Bureau
1. The management bodies of the Bureau shall be the general meeting of members of the Bureau, the Council of the Bureau, and the head of the Bureau.
2. The structure of the management bodies of the Bureau, their competence and the procedure for convening meetings and taking decisions shall be set out in the Statutes of the Bureau.
Article 31. General Meeting of Members of the Bureau
2. The general meeting of members of the Bureau shall:
5) take decisions on the proposals made by members of the Bureau regarding the activities of the Council of the Bureau;
7) take decision on proposals made by individual members of the Bureau or initiated by the head of the Bureau;
8) take decisions on issues related to the restructuring, reorganisation or liquidation of the Bureau;
3. Each member of the Bureau shall have one vote in the general meeting of members of the Bureau. The Ministry of Finance, the supervisory authority and the National Consumer Rights Protection Board under the Ministry of Justice may each send one representative to attend the general meeting of members of the Bureau in an advisory capacity.
4. The general meeting of members of the Bureau shall be convened in accordance with the procedure established in the Statutes of the Bureau. The general meeting of members of the Bureau must be convened at least once a year.
5. The general meeting of members of the Bureau may adopt decisions if it is attended by at least half of the members of the Bureau. The Statutes of the Bureau may provide for a possibility to vote in advance. In this case, member of the Bureau may, after having examined the agenda and draft decisions, notify the general meeting of members of the Bureau in advance and in writing of his position (“for” or “against”) in respect of each individual decision. Advance voting shall be included in the quorum of the meeting and in the voting results. The decisions of the general meeting of the members of the Bureau shall be adopted by a simple majority vote of members of the Bureau present, except in cases where the voting concerns decisions referred to in subparagraphs 2 and 8 of paragraph 2 of this Article. The decision referred to in subparagraph 2 of paragraph 2 of this Article shall be taken by at least 2/3 of the votes of members of the Bureau present in the general meeting, while the decision referred to in subparagraph 8 of paragraph 2 of this Article shall be taken by at least 3/4 of the votes of members of the Bureau present in the general meeting.
6. If the general meeting of members of the Bureau does not have a quorum, a repeat meeting shall be convened in accordance with the procedure established in the Statutes. This meeting shall be authorised to take decisions on the issues which were on the agenda of the originally planned meeting, irrespective of the number of members attending the repeat meeting.
Article 32. Council of the Bureau
1. The Council of the Bureau is a collegiate body directed by a chairman and elected by the general meeting of members of the Bureau to supervise the activities of the Bureau.
2. The Council of the Bureau shall:
2) follow and analyse the Bureau’s activity, use of financial resources, organisation of management; conduct a perspective assessment of its financial status, examine reports by the Bureau on these issues;
3) appoint and dismiss the Director of the Bureau; fix his remuneration; decide on incentives and sanctions in respect of the Director of the Bureau;
4) examine disputes between members of the Bureau and disputes between the Bureau and its members related to the business of compulsory insurance against civil liability in respect of the use of motor vehicles;
6) give opinions and proposals on issues which are on the agenda of the general meeting of members of the Bureau;
7) take decisions regarding the establishment of branches or representative offices of the Bureau and termination of their activity, and also approve their regulations;
8) make proposals to the supervisory authority on imposing sanctions in respect of members of the Bureau;
3. The number of members in the Council of the Bureau, which shall be at least 3, the procedure for electing members and taking decisions, and also the working procedure of the Council of the Bureau shall be established in the Statutes of the Bureau and in the work regulations of the Council of the Bureau.
4. The Council of the Bureau shall be elected in the general meeting of members of the Bureau for a term of 2 years. Members of the Council of the Bureau may be elected only from among the representatives of members of the Bureau who shall be natural persons linked with the insurer, which is a member of the Bureau, by virtue of employment. The chairman of the Council of the Bureau shall be elected by the Council of the Bureau from among its members by a simple majority of votes. Where the employment relationship with the insurer, which is a member of the Bureau, is terminated, the said person shall lose his membership in the Council of the Bureau.
5. The Council of the Bureau and its members shall not have the right to delegate or transfer their functions to other persons.
6. Members of the Council of the Bureau shall be jointly and severally liable to compensate the Bureau for the losses incurred by a decision of the Council of the Bureau taken in breach of this Law and other legal acts. Members who voted against such a decision or who were not present at the meeting where the decision was taken and who lodged a written protest against it with the chairman of the meeting within 7 days after they learned or should have learned of such a decision shall be released from the liability to compensate for losses. Any disputes regarding compensation of losses shall be settled in court.
Article 33. Head of the Bureau
2. The Director of the Bureau shall:
3) employ and dismiss employees in accordance with the procedure established in the Labour Code and other legal acts, decide on incentives or sanctions in respect of employees;
4) give opinions and proposals to the Council of the Bureau and the general meeting of members of the Bureau on issues falling within the scope of his competence;
5) conclude agreements with the national insurers’ bureaux of other states and with the Council of Bureaux;
6) represent the Bureau in state government and administration institutions, the Council of Bureaux and other international bodies;
3. The Director of the Bureau shall attend the general meetings of members of the Bureau and meetings of the Council in an advisory capacity.
Article 34. Revenue of the Bureau
1. The revenue of the Bureau shall be comprised of:
6) funds paid to the Bureau as fees for the handling of claims as part of its commitments to members of the Green Card system;
2.The Bureau shall be liable for its obligations to victims of road accidents to the extent of the funds of Bureau’s treasury.
3. The amount of the initial membership fee payable by members of the Bureau as well as the time limits and procedure for the payment thereof shall be set forth by the Ministry of Finance.
4. The amount of contributions by members of the Bureau, the procedure for transferring the said contributions and the amount of late-payment interest on overdue contributions shall be set forth by the Government or by an institution authorised by the Government.
Article 35. Expenditure of the Bureau
1. The expenditure of the Bureau shall be comprised of:
2) compensation for damage and expenses related to the handling of claims in respect of damages incurred in road accidents falling within the scope of competence of the Bureau;
3) expenses related to international financial commitments arising from the Bureau’s membership in the Council of Bureaux;
6) expenditures on the prevention fund formed with the purpose of financing measures aimed at preventing road accidents, improving control over compulsory insurance against civil liability in respect of the use of motor vehicles and promoting public education in respect of compulsory motor insurance;
Article 36. Treasury of the Bureau
1. The purpose of the Treasury of the Bureau is to guarantee the payment of compensation in cases where the obligation to pay compensation lies with the Bureau and to ensure the implementation of international financial commitments arising from the Bureau’s membership in the Council of Bureaux.
2. The Treasury of the Bureau shall be formed of:
1) a share of contributions to the Bureau by members of the Bureau as determined by the Government or by an institution authorised by the Government;
3) funds reimbursed to the Bureau for the compensation paid by the Bureau instead of other persons (including litigation costs awarded to and recovered by the Bureau);
4) funds paid to the Bureau as fees for the handling of claims as part of its commitments to members of the Green Card system;
5) income from investment of the funds of the Treasury of the Bureau and interest earned on deposits with banks;
3. funds of the Treasury of the Bureau may only be used for the following purposes:
1) to reimburse compensations in respect of the damage caused in road accidents, including those cases where compensation and claims handling fees are paid in compliance with the requirements of the legal acts regulating the Green Card system where the Bureau acts in the capacity of a compensation body, and to reimburse the amounts claimed by the compensation bodies of other Member States of the European Union;
2) to cover the costs of litigation and the costs of loan enforcement in exercising the right of recourse;
3) for compulsory payments and financial guarantees as part of implementing international financial commitments arising from the Bureau’s membership in the Council of Bureaux and commitments to members of the Green Card system;
4. No payments may be enforced from the funds and assets of the Bureau, in which the funds of the Bureau are invested, under obligations other those referred to in paragraph 3 of this Article.
Article 37. Investments from the Treasury of the Bureau
The available funds of the Treasury of the Bureau shall be invested in accordance with the procedure set forth by the Government or by an institution authorised by the Government.
Article 38. Appeals against Decisions of the Bureau
Decisions of the Bureau may be appealed against in court in accordance with the procedure established in by the law.
Article 39. Financial Accounts, Auditing and Control of Activities
1. The Bureau shall have its annual financial accounts audited by an auditing company and approved by the general meeting of members of the Bureau within 4 months after the end of the financial year, and shall submit them to the Ministry of Finance.
2. The Bureau shall annually publish its financial accounts for the preceding year in a national daily newspaper before June 1st.
3. The Ministry of Finance may require that the Bureau submit its financial accounts to the Ministry of Finance within time limits other than specified in paragraph 1 of this Article.
4. The Bureau shall be liable for the accuracy of information in its financial accounts in accordance with the procedure established by the law.
5. At the request of the Ministry of Finance, the auditing company which has audited the financial accounts of the Bureau shall provide explanations regarding the financial accounts.
Article 40. Specific Features regarding the Restructuring and Closure of the Bureau
2. The Minister of Finance, on the basis of his own decision, or the general meeting of members of the Bureau, on the basis of its decision taken by a majority of 3/4 of the votes, may request the Government to introduce a draft law regarding the restructuring, reorganisation or liquidation of the Bureau.
Article 41. Control of Insurance
1. The control of compulsory insurance against civil liability in respect of the use of motor vehicles is a check on insurance of the vehicle concerned.
2. In the Republic of Lithuania, the control of compulsory insurance against civil liability in respect of the use of motor vehicles shall be carried out by the police, the State Border Guard Service under the Ministry of the Interior, undertakings which conduct state technical inspections, and a body responsible for registration of vehicles.
3. A person responsible for the conclusion of an insurance contract shall be obliged to have the vehicle covered by compulsory insurance against civil liability in respect of the use of motor vehicles in conformity with the requirement of this Law and the sum insured shall be not lower than specified in Article 11 of this Law:
3) before crossing the border, where the user of vehicle intending to travel across the territory of the Republic of Lithuania is not covered by compulsory insurance against civil liability in respect of the use of motor vehicles as required in this Law;
4. At the request of the institution carrying out the control of compulsory insurance against civil liability in respect of the use of motor vehicles, the person who is being checked shall present an insurance certificate valid under this Law at the time of the check or any other document certifying, in accordance with legal acts of another state, the conclusion of an insurance contract.
5. A valid certificate of insurance shall be presented to the undertaking which conducts state technical inspections before the vehicle is inspected.
6. No check on compulsory insurance against civil liability in respect of the use of motor vehicles shall be carried out in respect of vehicles normally based in the territory of another Member State of the European Union and vehicles normally based in the territory of a foreign state, which enter the territory of the Republic of Lithuania from the territory of another Member State of the European Union. However, non-systematic and non-discriminatory random checks may be carried out which are not aimed exclusively at compulsory insurance against civil liability in respect of the use of motor vehicles.
7. Vehicles normally based in the territory of a foreign state shall be treated like vehicles normally based in the territory of a Member State of the European Union if the national insurers’ bureaux of all Member States of the European Union guarantee, each individually under their national legislation on compulsory insurance against civil liability in respect of the use of motor vehicles, the payment of compensation for the damage caused by such vehicles in road accidents occurring in their respective territories.
8. Before going from the Republic of Lithuania to other Member States of the European Union, the users of vehicles normally based in the territory of the Republic of Lithuania shall have a valid insurance certificate certifying the conclusion of an insurance contract which is in compliance with the requirements of this Law.
Article 42. Principles of Control over Insurance of Vehicles Registered in the Republic of Lithuania
Having compared the data received from the institutions responsible for the registration and technical inspection of vehicles with the information available in its database about insured vehicles, the Bureau shall have the right to forward to the police the data on registered, but not insured motor vehicles. The police, after having receiving such information, shall impose, in accordance with the procedure established in the legal acts, administrative penalties on the person responsible for the conclusion of an insurance contract.
Article 43. Liability for Failure to Conclude Insurance Contract in conformity with this Law
1. Natural and legal persons responsible for the conclusion of an insurance contract who failed to conclude an insurance contract in conformity with this Law and the users of vehicles who do not have a valid insurance certificate or any other document certifying, in accordance with the legal acts of another state, the conclusion of an insurance contract shall be liable under the Code of Administrative Offences.
Article 44. Monetary Unit
Amounts in euros referred to in this Law shall be expressed in litas according to the official exchange rate of the litas against the euro as published by the Bank of Lithuania.
I promulgate this Law passed by the Seimas of the Republic of Lithuania.
PRESIDENT OF THE REPUBLIC VALDAS ADAMKUS
Annex to
the Law on Compulsory Insurance against Civil Liability
in respect of the Use of Motor Vehicles
EU LEGAL ACTS IMPLEMENTED BY the Law on Compulsory Insurance against Civil Liability in respect of the Use of Motor Vehicles
1. Council Directive 72/166/EEC of 24 April 1972 on the approximation of the laws of Member States relating to insurance against civil liability in respect of the use of motor vehicles, and to the enforcement of the obligation to insure against such liability.
2. Council Directive 72/430/EEC of 19 December 1972 amending Council Directive 72/166/EEC of 24 April 1972 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles and to the enforcement of the obligation to insure against such liability.
3. First Council Directive 73/239/EEC of 24 July 1973 on the coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance.
4. Commission Recommendation 74/165/EEC of 6 February 1974 to the Member States concerning the application of the Council Directive of 24 April 1972 on the approximation of the laws of the Member States relating to the use of motor vehicles, and to the enforcement of the obligation to insure against such liability.
5. Commission Recommendation 81/76/EEC of 8 January 1981 on accelerated settlement of claims under insurance against civil liability in respect of the use of motor vehicles.
6. Second Council Directive 84/5/EEC of 30 December 1983 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles.
7. Second Council Directive 88/357/EEC of 22 June 1988 on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and laying down provisions to facilitate the effective exercise of freedom to provide services and amending Directive 73/239/EEC.
8. Third Council Directive 90/232/EEC of 14 May 1990 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles.
9. Council Directive 90/618/EEC of 8 November 1990 amending, particularly as regards motor vehicle liability insurance, Directive 73/239/EEC and Directive 88/357/EEC which concern the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance.
10. Council Directive 92/49/EEC of 18 June 1992 on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and amending Directives 73/239/EEC and 88/357/EEC (third non-life insurance Directive).
11. Directive 2000/26/EC of the European Parliament and of the Council of 16 May 2000 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles and amending Council Directives 73/239/EEC and 88/357/EEC (Fourth motor insurance Directive).