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International Internet Magazine. Baltic States news & analytics Saturday, 21.04.2018, 08:54

On subrogation action by Motor Insurers’ Bureau of Latvia

Dmitrijs Shustovs, lawyer of the law office INLAT PLUS, 09.07.2012.Print version
Question: I’ve received a letter of claim by Motor Insurer’s Bureau for compensation of losses. The letter indicates that I own the car which caused road accident thus inflicting losses to third persons. However I have sold the car a year ago and didn’t commit this road accident. Is it lawful for Insurers’ Bureau to claim these losses?

Answer: The situation is common. Seller of the car deregisters it for the sale in Latvia, but for some reason the new owner doesn’t register the car in his name with Road Traffic Safety Department (CSDD). In this case the owner didn’t purchase compulsory civil liability insurance and caused road traffic accident. The Motor Insurers’ Bureau of Latvia paid the suffering party compensation and took over the right to bring a subrogation action. According to Section 41, Paragraph 2, Clause 1 of the Compulsory Civil Liability Insurance of Owners of Motor Vehicles Law, the Motor Insurers’ Bureau is entitled to submit a subrogation action against the owner of a motor vehicle that has caused a road traffic accident, if he or she has not insured his or her civil liability, or against the legal user of such motor vehicle.


If the driver of the vehicle is known, you have the right to ask Motor Insurers’ Bureau to address the claim directly to the driver responsible for causing the accident.


Law office INLAT PLUS

Brivibas 40-15, Riga

+371 67505970

+371 26403577

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