Translation
L A W
On Compulsory Motor Third Party Liability Insurance
No. 414-XVIas of 22.12.2006
Monitorul OficialNo.32-35/112 as of09.03.2007
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C O N T E N T S
Chapter I
GENERAL PROVISIONS
Article 1 - Application Range
Article 2 - General Definitions
Article 3 -The Subject of Compulsory Motor Third Party Liability Insurance
Article 4 - Categories of Persons Liable to Compulsory Motor Third Party Liability Insurance
Article 5 - Requirements to the Insurer Writing Compulsory Motor Third Party Liability Insurance
Article 6 – The Claim Representative
Article 7 – The Insured Event
Chapter II
THE CONTRACT OF COMPULSORY
MOTOR THIRD PARTY LIABILITY INSURANCE
Article 8 - Mode of Concluding Contracts of Compulsory Motor Third Party Liability Insurance
Article 9 –The Period of Validity of the Insurance Contract
Article 10 - Insurance Contract Termination
Chapter III
INSURANCE PREMIUMS AND CLAIMS’ LIMITS
Article 11 - Insurance Premiums
Article 12 - Discounts and Increases to Insurance Premiums
Article 13 - Mode of Paying the Insurance Premium
Article 14 - Limits of Insurer’s Liability
Chapter IV
CLAIMS INDEMNIFICATION
Article 15 - Claims Indemnified by the Insurer
Article 16 - Claims Non-indemnified by the Insurer
Article 17 - Claims Compensation to Be Paid in Case of Sufferer’s Guilt
Chapter V
CLAIMS NOTIFICATION AND VALIDITY ASCERTIAINMENT
Article 18 - Obligations of the Insured
Article 19 - Obligations of the Insurer
Article 20 - Rights and Obligations of the Sufferer
Article 21 – The Claim File/ Claims Validity
Chapter VI
INDEMNITY CALCULATION AND PAYMENT
Article 22 - Mode of Indemnity Calculation
Article 23 - Indemnity Calculation in Case of Damage or Loss of a Motor Vehicle
Article 24 - Calculation of the Motor Vehicle Value
Article 25 - Calculation of Indemnity in Case of Bodily Injury
Article 26 - Calculation of Indemnity in Case of Bodily Injury or Death of Domestic Animals
Article 27 - Calculation of Indemnity in Case of Damage or Loss of Other Property
Article 28 - Claim Payment
Article 29 - Recovery Procedures
Chapter VII
THE NATIONAL BUREAU OF MOTOR INSURERS
Article 30 - Setting up the National Bureau of Motor Insurers
Article 31 - Functions of the National Bureau of Motor Insurers
Article 32 - Membership in the National Bureau of Motor Insurers
Article 33 - Road Accident Victims Protection Fund
Article 34 – The Compensation Fund
Article 35 - Property of the National Bureau of Motor Insurers
Article 36 - Management Bodies of the National Bureau of Motor Insurers
Article 37 - Information about Road Accidents
Article 38 - Insurance Accounting
Article 39 - Control of Activity on Compulsory Motor Third Party Liability Insurance
Chapter VIII
FINAL AND TRANSITIONAL PROVISIONS
Article 40 - Transitional Provisions
Article 41 - Coming into force/ Abrogation/ Government Duties
The Parliament adopts the present organic Law.
Chapter I
GENERAL PROVISIONS
Article 1 - Range of Application
The present Law regulates legal relationships between Insurers, Insureds and Third Parties that arise from contracts of compulsory third party liability insurance against damage caused by motor vehicles, as well as mode of writing this class of insurance.
Article 2 -General Definitions
According to the present Law the below mentioned general definitions mean as follows:
Road accident – an unforeseen occasional event caused by one or several motor vehicles that resulted in damage to several people and that may entail claims;
Compulsory motor third party liability insurance against damage caused by motor vehicles(hereinafter, compulsory MTPL insurance) means conclusion of an insurance contract certified either by an inland compulsory MTPL policy and/or international Green Card policy according to which the Insurer, authorised by this Law to write compulsory motor third party liability insurance, is obliged vs. certain insurance premium, paid by the Insured, to compensate damage caused during insurance contract period of validity due to a road accident;
Insured– an individual or a legal entity that has made a compulsory motor third party liability insurance contract;
Motor vehicle– a self-propelled land-based mechanical vehicle excluding railway ones, that is used for shipping passengers, luggage and cargo as well as for doing other work and services related with transportation, i.e. cars, busses, mini-busses, trolley busses, lorries (inclusive special-purpose ones), motor cycles, tractors.
According to the present Law, trailers, semi-trailers and similar vehicles, other self-propelled vehicles both town or non-town, both, admitted for use in compliance with the valid legislation or registered abroad by competent authorities, shall be an integral part of the category of motor vehicles;
National Bureau of Motor Insurers - a National Bureau in the Republic of Moldova set up in conformity with the Law on Insurance No.407-XVI as of 21 December 2006;
International Green Card Council of Bureaux (hereinafter - Council of Bureaux) is a body to be formally joined by all national bureaux of EU and other associated European member countries, which is responsible for management and introduction of international system for MTPL insurance;
Claim file – the file that contains all documents necessary for determining claim validity and claim settling;
MTPL cover territory(hereinafter, cover limits) – the territory of the Republic of Moldova (internal compulsory motor third party liability insurance) and the territory of countries the National Bureaux of which are parties of the Agreement between national green card insurance bureaux of EU and other associated European Community member countries signed by the National Bureau of Motor Insurers (external compulsory motor third party liability insurance);
Sufferer– any person possessing the right to insurance compensation for property damage or bodily injury caused by a road accident;
MTPL insurance policy– a policy of compulsory MTPL insurance valid in the territory of the Republic of Moldova, that certifies making the contract of compulsory motor third party liability insurance;
Green Card insurance policy– an international insurance document issued on behalf of a National Bureau that certifies existence of compulsory MTPL insurance valid beyond the territory of the country – issuer of the policy in conformity with Recommendation No.5 as of 25 January 1949 adopted by the Sub-Committee on Motor Transport of the Committee for Internal Transportations within the European Economic Community of the United Nations Organisation;
Owner of a motor vehicle– an owner of a motor vehicle by right as well as a person owning a motor vehicle on the base of a rent contract, leasing contract or any other agreements specified in the legislation;
Damage – a negative exposure of a physical or juridical person resulting from occurrence of the insured event covered by the contract of compulsory motor third party liability insurance;
General Regulations of the Council of Bureaux – an official document adopted by the Assembly of the Council of Bureaux in Rethymno (Crete) on 30 May 2002, that comprises all obligatory provisions that govern relationships between National Bureaux of Motor Insurers of the countries – members of the International Green Card System;
Specialised enterprise – a physical or juridical person possessing the respective permission (registered in conformity with the Law) that deals with sale of motor vehicles, component and spare parts and/or works on service and repair of motor vehicles;
User – any person that drives a motor vehicle – an insured, people specified in the insurance contract, other people driving the car both, at or without consent of its owner. When being trained as a driver the user shall be the person that exercises coaching;
Bonus - malus systemis a system of premium discounts or increases on compulsory MTPL insurance applied depending on claim history;
Original cost– an original cost of a damaged motor vehicle means as follows:
- the selling value applied by local specialized enterprises and expressed in Moldovan currency at the official rate of exchange of the Moldovan National Bank as on the date of occurrence of the road accident;
- the respective price from the specialized catalogue in Moldovan lei at the rate of exchange of the Moldovan National Bank as on the date of occurrence of a road accident, for motor vehicles that are not sold by local specialized enterprises;
- the cost established by equating to prices on motor vehicles with similar technical parameters both, for motor vehicle models on which prices have not been yet established and which are no longer manufactured;
Depreciated cost is the cost of motor vehicle parts remaining non-damaged after full destruction of a motor vehicle or being in the state when it can not be reinstated though not exceeding 25% of the cost of the motor vehicle on the date of occurrence of the insured event.
Article 3 -The Subject of Compulsory Motor Third Party Liability Insurance
The subject of compulsory motor third party liability insurance is third party liability of the motor vehicle owner for property damage or bodily injury caused as a result of a road accident that occurred in the territory covered by insurance.
Article 4 – The Category of Persons Liable to Obtaining Compulsory Motor Third Party Liability Insurance
(1) Physical and juridical persons owning motor vehicles liable to registration in the territory of the Republic of Moldova must be insured against third party liability sequencing from damage caused as a result of a road accident occurred in the territory covered by insurance.
(2) Persons that enter the territory of the Republic of Moldova driving motor vehicles registered abroad shall be considered insured provided they
a) Are insured in conformity with the present Law;
b) Possess international insurance documents valid in the territory of the Republic of Moldova.
Article 5 - Requirements to the Insurer Writing Compulsory Motor Third Party Liability Insurance
(1) The Insurer may write compulsory internal motor third party liability insurance provided in addition to requirements specified in the Law on Insurance he meets the following conditions:
a) He has at least one claim representative in each municipiu (region) of the Republic of Moldova;
b) He is equipped with the respective hardware, software and staff which allows detail accounting of insurance documents, information/data centralizing and simultaneous electronic data transfer on motor third party liability insurance for supplementing periodically the central uniform database developed by the National Bureau of Motor Insurers and the State Insurance Supervisory Office;
c) He is not in the process of financial invigoration or insolvency specified in the special legislation on insurance and insolvency;
(2) The Insurer may write external compulsory motor third party liability insurance provided in addition to conditions stipulated in paragraph (I) he complies with the following requirements:
a) He participates in the initial monetary contribution to the Compensation Fund;
b) He participates with equal monetary contributions in creating the Bank Guarantee, specified by the Council of Bureaux, this obligation being valid during the whole period while the National Bureau of Motor Insurers is a Transitional Member of the Council of Bureaux.
(3) In order to apply bonus – malus system Insurers have access to the uniform database to obtain information regarding Insureds’ claim history.
(4) Data liable to collection and transfer to the uniform database, developed at the national level are specified in the normative acts developed by the State Insurance Supervisory Office.
Article 6 - TheClaim Representative
(1) An Insurer of motor third party liability shall appoint the claim representative in each branch and/or representation. If an Insurer has neither branch nor representation in any municipiu, insurance broker (a legal entity) shall be authorised by the Insurer to be his claim representative in this municipiu.
(2) The claim representative shall collect submitted claims and relevant information necessary for examining and settling claims by the Insurer; he also has the right to conclude insurance contracts.
(3) The claim representative has the right to make decisions within limits established by the Insurer in order to represent the latter in his relationships with the sufferer. Appointment of the claim representative does not exclude the right of the sufferer or his Insurer to initiating proceedings against the person guilty in the road accident or his Insurer.
(4) Granting insurance brokers with authorities of the claim representative does not mean setting up a branch or representation by the Insurer of motor third party liability.
(5) The insurance broker may exercise his activity as a claim representative on behalf of several insurers.
Article 7 -TheInsured Event
(1)In conformity with compulsory motor third party liability insurance an insured event is a road accident (made by a motor vehicle the owner of which has compulsory motor third party liability insurance) resulting in damage:
a) Caused both, during driving the car or the latter being parked;
b) Occurred as a sequence of occasional disconnection of a trailer or semi-trailer or other types of trailers;
c) Provoked by installations or devices with which the car has been equipped;
d) Caused during entering or leaving the car resulting from leakage, scattering or occasional fall of shipped substances, materials or goods;
e) Occurred during boarding or leaving the motor vehicle.
(2) The Insured bears no liability if a road accident:
a) Is a result of force-majeure circumstances or war period measures, extraordinary situations, natural calamities, nuclear explosion, radiation or radioactive contamination, riots, terrorist acts;
b) Has been made by the sufferer.
Chapter II
THE CONTRACT OF COMPULSORY MOTOR THIRD PARTY LIABILITY INSURANCE
Article 8 -Mode of Concluding Contracts of Compulsory Motor Third Party Liability Insurance
(1) Compulsory motor third party liability insurance shall be implemented through direct making the insurance contract between the owner of a motor vehicle and the Insurer (possessing the licence for writing compulsory motor third party liability insurance).
(2) MTPL insurance contract shall be concluded:
a) With obligatorily indication of people (limited number) admitted to use the motor vehicle in respect of which the contract is concluded); or
b) Without indication of people (unlimited number) admitted to use the motor vehicle in respect of which the contract is concluded.
(3) The respective application shall be submitted to the name of the Insurer in order to conclude the insurance contract. The Insurer may not decline accepting, considering and making decision on insurance application.
(4) The insurance contract evidences existence of compulsory motor third party liability insurance. Conclusion of the contract of internal compulsory motor third party liability insurance is evidenced by issuing the policy of compulsory motor third party liability insurance; conclusion of the contract of external compulsory motor third party liability insurance is evidenced by issuing the Green Card policy.
(5) The forms and contents of insurance applications, insurance contracts and internal MTPL and Green Card policies are similar for all Insurers and are developed by the State Insurance Supervisory Office.
(6) Physical and juridical persons that own more than one motor vehicle, registered or liable to registration in the Republic of Moldova may conclude a single motor third party liability contract mentioning in the contract the number of insured motor vehicles, their technical parameters and identification data so that the Insurer may issue an insurance policy per each motor vehicle.
(7) When making the insurance contract the owner of the motor vehicle shall allow the Insurer to inspect technical status of the motor vehicle and shall state its claim history in the application.
(8) Services on compulsory motor third party liability insurance (both, internal and external) are rendered only in premises of Insurers or intermediaries equipped with sales registers and hardware allowing to register and account contacts and transfer data to the centralised database of the Insurer, National Bureau of Motor Insurers and the State Insurance Supervisory Office.
Article 9 – The Periodof Validity of the Insurance Contract
(1) The contract of compulsory motor third party liability insurance shall be concluded for the period of 12 months except cases specified in paragraphs (2)-(4). Insurance is considered to be valid provided the Insured has paid the insurance premium for the period of insurance corresponding to the contract term.
(2) It is permitted to conclude insurance contacts for the period of less than 12 months for motor vehicles as follows:
a) Those used for seasonal agricultural works;
b) Those possessing temporary registration numbers;
c) In other cases stipulated by the legislation.
(3) The contract of external compulsory motor third party liability insurance may be concluded for the period less than 12 months though no less than 15 days.
(4) The people that use in the territory of Moldova vehicles registered abroad, either non - insured or with insurance which expires during stay in the Republic of Moldova, shall conclude contracts of compulsory motor third party liability insurance either when entering the territory of the Republic of Moldova or at the latest on the date of insurance term expiry in the authorised premises of the Insurer. Insurance contracts shall be concluded for the whole period of staying in the territory of the Republic of Moldova though no less than 15 days.
(5) Insurer’s liability commences since the date specified in the insurance policy and expires either at 00.00 of the last day of the term, specified in the insurance policy, or earlier than this date when the motor vehicle is prohibited to be driven. The insurance policy may be issued only after the insurance premium is paid.
Article 10 –Termination of the Insurance Contract
(1) The contract of compulsory motor third party liability shall be terminated as follows:
a) In case of excluding the motor vehicle from the government register and/or expropriation;
b) In case of liquidating the Insured (the legal entity) or Insured’s (physical person) death;
c) In case of issuing final judgement by the court regarding contract termination: as well as
d) In other cases stipulated by the legislation.
(2) The insurance contract shall be terminated in case of occurrence of the insured event and claim payment.
(3) When the contract is terminated due to excluding a motor vehicle from the government register and/or expropriation the Insurer shall return to the Insured the full insurance premium for full months remaining till contract expiry less actual management expenses though no more than 20 per cent of the insurance premium liable to repayment.
(4) The insurance contract shall be considered invalid in cases specified in the legislation in force. The contract is not be applied to road accidents occurred due to Insured’s guilt before concluding the respective contract.
Chapter III