LATVIA: Parliament adopted MTPL law amendments

27 March 2019 — Cosmin CONCEATU
On March 14, Saeima, the parliament of Latvia, adopted a set of amendments to the current MTPL system (OCTA). The changes aim to refine the present law of MTPL and eliminate the shortcomings in everyday practice. The amendments will enter into force 1 May 2019.

A few of the changes and additions to MTPL law are:
  • vehicle owners who sell their MTPL insured vehicle will recoup the unused portion of the insurance premium, and their MTPL contract will no longer be available for that particular vehicle;
  • vehicles imported from outside Latvia need to be insured under an OCTA contract within 30 days of registration day;
  • if a vehicle is used in activities other than the one specified when the MTPL was signed (for example, a personal vehicle being used as a public transport taxi), the contract will automatically expire, and the vehicle will need to be insured again with a new MTPL contract stating the real purpose;
  • MTPL contracts can be terminated prematurely if the insurer is revoked, self-liquidation is initiated, or the vehicle has a changed identification number;
  • alignment of compensation limits for bodily injuries and property damage to current European regulations;
Full text of the law can be found here (Latvian).

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