What is motor third party liability (MTPL) insurance?
Motor third party liability insurance is a type of insurance under which the insurance company indemnifies for damages caused by the vehicle of its customer in a traffic situation to a third person.
Which contract should I conclude?
An ordinary motor third party liability insurance contract is executed with regards to a motor vehicle and its trailer, which is registered or is subject to registration with a traffic register set forth by the Traffic Act.
In addition to the owner of the vehicle the ordinary contract may be executed by a person indicated on the registration certificate of a vehicle as the user of the vehicle, a person authorised to use the vehicle on the basis of an authorisation document or other persons holding an authorisation document to enter into the contract. No fee is charged for concluding the contract.
When entering into an ordinary contract it is possible to select one of the two alternatives: with and without the payment obligation.
A contract with the payment obligation, i.e. the YES contract, is well suited for those, who use their vehicles all year round. It is an easy and convenient option of leaving the ensuring of the insurance coverage to Salva Kindlustus. Salva Kindlustus will send you in good time before the expiry of your current policy a new policy and an invoice, which are delivered by post to the address of your choice.
Your only obligation is to pay the invoice by its deadline, and drive safely. Along with a standing payment order arranged with the bank, the YES contract is the best way of ensuring that procedures required to ensure the existence of the insurance coverage is reduced to the minimum. The greatest advantage of a YES contract is knowing for sure that your vehicle is always covered by an effective motor third party liability insurance.
To suspend an issued YES contract policy it is sufficient to submit a signed application in a format reproducible in writing, and the contract becomes premium-free from the moment selected by you.
A contract without the payment obligation, i.e. the NO contract, is better suited for those, who use their vehicles from time to time. Always when you wish to use your vehicle, you address the relevant intent to your agent, or drop by the nearest Salva office, and purchase the policy precisely for the period during which you use your vehicle.
Having just an ordinary contract is not sufficient for participating in traffic. In addition you need to buy an ordinary policy that provides you insurance coverage in Estonia, in the Member States of European Union and European Economic Area. The insurance period under an ordinary policy ranges from one day to 12 months.
At your request we shall issue you the Green Card, which represents the form of the policy under a normal contract, effective in the countries stated on the card. The Green Card can be issued for the effective term of the ordinary policy.
How much does the mandatory motor third party liability insurance cost?
The amount of the insurance premium depends on the duration of the insurance period, the risk coefficient of the owner, the technical parameters of the vehicle, and the region it is operated in.
How are the damages indemnified for?
Under an ordinary contract the insurance company will indemnify for the traffic damages caused in Estonia, in another EU Member State, in a contracting state and – if a relevant notation is made on the policy – in other states.
There are two parties of any traffic accident – the party at fault and the injured party. The insurance company of the party at fault compensates for damages caused by the traffic accident to the injured party. Property damages of the party at fault are not indemnified for. Only medical expenses of the person causing the traffic accident are covered.
Traffic damage includes personal injury and property damage. Traffic indemnity is paid out in the extent of actual damages, however not exceeding the limit established by the Government of the Republic of Estonia. The personal injury indemnity limit is 2,5 and that of the property damage 0,5 million EUR. If the actual damage exceeds the set limit amount, the injured party will have the right to collect the damages from the party at fault.