Moldovan Parliament adopts in second reading the draft law on compulsory motor third party liability insurance for damages caused by vehicles.
The law will take effect 12 months after its publication in Monitorul Oficial (the Official Journal of Moldova). During this period the supervisory body will bring its normative acts in line with the new law. The draft law has been prepared by the National Commission for the Financial Market in collaboration with experts of the World Bank in the context of the reform of the insurance market of Moldova. The purpose of the draft law is to bring the legal framework in line with EU regulations, by establishing general and specific conditions of motor vehicle liability insurance and method and conditions of payment of insurance indemnities. The draft law is designed to establish a clear and predictable mechanism for continuous monitoring of the compulsory motor insurance market with appropriate instruments. The most important elements included in the draft relate to: special provisions for the suspension, termination and cancellation of the contract of compulsory motor third party liability (CMTPL) insurance; rules for the application of CMTPL; provisions on the law applicable to the place of accident; the mechanism of peaceful settlement of an accident; the obligation of the insurer of CMTPL to inform the insurer of the amount of insurance premium, and other information concerning the calculation of insurance premium, correction factors, and the obligation of insurers to inform parties about the settlement of the claim. According to the draft law, the contract of internal CMTPL insurance is concluded for 12 months, and the contract of external CMTPL insurance ("Green Card") can be concluded for a period of less than 1 year, but not less than 15 days, depending on the choice of the insured. Insurance premiums are paid in full. The CMTPL insurance contract is drawn up on paper or by electronic means online and is concluded between the insurer and the insured without specifying who is allowed to use the vehicle, i.e. with an unlimited number of users. The application can also be submitted electronically. The law provides for increase of the limit of the liability covered by the CMTPL, from 1 million lei to 100 thousand euros in case of damage or destruction of property. Similarly, for bodily injuries and death of people as a result of the same traffic accident, there will be established the limit of insurance indemnity at the level of 100 thousands euro - for one injured person or at the level of 500 thousands euro - regardless of the number of injured persons, in lei equivalent at the official exchange rate of the MDL set by the National Bank of Moldova on the date of the traffic accident. The new chapter refers to compensation for moral damages caused by bodily injury or death of persons involved in a traffic accident. The draft law provides for the establishment of a regulatory mechanism of the mandatory car insurance market by setting the level of premiums by the supervisory body, as well as the possibility to apply the procedure of direct settlement in case of CMTPL insurance. Thus, the insured will be able to apply to his/her CMTPL insurer to receive compensation for the damage caused. The latter will later be able to reimburse the value of the paid damages at the expense of the guilty person. The system of direct settlement does not limit the right of a victim of a road accident to directly apply for compensation to the CMTPL insurer of the perpetrator of the accident. At the same time, this draft law provides for a new way of organizing and functioning of the National Bureau of Motor Insurers - a single structure endowed with representative powers, having the prerogatives and acting as the National Bureau of Moldova in the international Council of Bureau and being a member of it. In order to fulfill the functions of the National Bureau of Motor Insurance, the body for damages and compensation, the National Bureau of Motor Insurance will have its own structures - the Accident Victim Protection Fund and the Compensation Fund, formed from the contributions of all members. Contributions will be proportional to the volume of gross premiums received from the sale of CMTPL/Green Card agreements. The draft law also provides that insurers licensed for CMTPL abroad will be authorized to issue Green Card insurance certificates to policyholders in electronic format, according to the samples approved by the National Council of Bureau. //22.04.2022 - InfoMarket.. //22.04.2022 - InfoMarket.
