
The new law on compulsory motor third party liability insurance (CMTPL) for damage caused by motor vehicles will take effect on April 1.
This law regulates the legal relations between insurers, policyholders and third parties arising from the contract of compulsory motor third party liability insurance for damages caused by vehicles, as well as the procedure for this type of insurance. As of April 1 it will include a number of new requirements and rules of compulsory motor liability insurance. The law increases the limits of liability covered by CMTPL - from 1 million lei (about 51 thousand euros) to 100 thousand euros in case of material damage following a traffic accident, regardless of the number of victims. In case of bodily injuries and death of people following the same traffic accident the limit of insurance indemnity is established at the level of 100 thousand euros - for one injured person and at the level of 500 thousand euros - regardless of the number of injured persons. As regards material damage declared on the basis of the procedure of peaceful settlement of a traffic accident, the maximum amount of indemnity shall be determined by the regulatory acts of the supervisory authority. For the first time the law provides a limit of compensation for moral damages due to disability or death of the affected person following the same traffic accident: it will be 5 thousand euros for one affected person or 10 thousand euros regardless of the number of affected persons. It is stipulated that the moral damage is compensated at 100% in case of death of the injured person, in case of a severe degree of disability - at 90%; pronounced disability - at 60%; medium disability - at 30%. The law reflects legal norms on cancellation of the contract on CMTPL insurance and suspension of its validity, specifies the risks covered by the CMTPL insurance and the categories of injured persons, describes in more detail the procedure for peaceful settlement of a traffic accident, specifies the procedure for determination and payment of the insurance premium and insurance compensation, etc. The concept of "direct settlement" is introduced, on the basis of which the insured can choose an auxiliary service for settlement of losses by CMTPL insurers to those they insure. Thus, in the event of an accident the insured will interact with his/her insurer, not the insurer of the victim. The new document establishes the term within which the CMTPL insurer is obliged to make a decision on settlement of the claim for compensation and payment of insurance compensation - no more than 1 month from the date of the claim for compensation in the case of a complete claim case and no more than 3 months in the case of an incomplete claim case. The law also obliges insurers to use an automated assessment information system in the field of motor vehicles, containing prices from catalogs of manufacturers of spare parts, components and materials required for repair, and which meets the requirements established by regulatory acts of the supervisory authority. The law stipulates that until July 1, 2023, the National Financial Market Commission will ensure the powers of the supervisory body in the field of insurance, after that the National Bank of Moldova will take over these powers. // 31.03.2023 – InfoMarket