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Tuesday, 24.06.2025, 05:54
On insurance compensation in case of traffic accident in Latvia
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Answer: In this particular case requests of both insurers are lawful and governed by two main laws – Law on insurance contracts and Compulsory Civil Liability Insurance of Owners of Motor Vehicles Law. According to Section 40 of the first law, an insurer (in this case KASKO) who has paid insurance compensation may take over the right of claim of an insured person against a person who is responsible for loss. Considering that driver 1 liability was insured (OCTA), the insurer (KASKO) requested the payment from the OCTA insurer. Driver 1 would not be obliged to pay any amounts to his insurer if not for Section 41 of the law. According to the said section OCTA insurer is entitled to raise a subrogation action against the driver in fault of the traffic accident (despite that his liability has been insured) due to his failure to submit the agreed statement. Therefore in order to avoid such unpleasant consequences one should not forget to submit a copy of the agreed statement to his insurer.
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