Motor Third Party Liability Insurance Act


Published: 2013-07-01

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Motor Third Party Liability Insurance Act1
[RT I 2007, 55, 368 - entry into force 02.11.2007]

Passed 10.04.2001
RT I 2001, 43, 238
Entry into force 01.06.2001
Amended by the following legal instruments (show)

Passed
Published
Entry into force

27.03.2002
RT I 2002, 35, 215
25.04.2002

12.06.2002
RT I 2002, 57, 357
01.08.2002

19.06.2002
RT I 2002, 63, 387
01.09.2002

17.12.2003
RT I 2003, 88, 591
01.01.2004

18.02.2004
RT I 2004, 14, 90
25.03.2004, partially 01.05.2004

08.12.2004
RT I 2004, 90, 616
01.01.2005

15.06.2005
RT I 2005, 39, 308
01.01.2006

26.01.2006
RT I 2006, 7, 42
04.02.2006

20.04.2006
RT I 2006, 21, 162
01.06.2006

20.04.2006
RT I 2006, 21, 163
01.07.2006

15.02.2007
RT I 2007, 24, 127
01.01.2008

26.09.2007
RT I 2007, 55, 368
02.11.2007

05.11.2008
RT I 2008, 49, 270
06.12.2008

26.11.2009
RT I 2009, 62, 405
01.01.2010

22.04.2010
RT I 2010, 22, 108
01.01.2011, enters into force on the date determined by the Decision of the Council of the European Union on abrogation of a derogation of the Republic of Estonia on the basis of Article 140 (2) of the Treaty on the Functioning of the European Union, Council Decision No. 2010/416/EU of 13 July 2010 (OJ L 196, 28.07.2010, pp. 24–26).

17.06.2010
RT I 2010, 44, 261
01.01.2011, date of entry force amended 01.07.2011

23.12.2010
RT I, 31.12.2010, 3
01.07.2011, partially 01.01.2011

15.05.2013
RT I, 01.06.2013, 1
01.07.2013

Chapter 1 GENERAL PROVISIONS 

§ 1.  Purpose of Act

This Act provides for compulsory motor third party liability insurance.

§ 2.  Object of insurance

Motor third party liability insurance is insurance of the civil liability of a person in possession of major source of danger or, in the cases specified in section 27 of this Act, personal accident insurance.

§ 3.  Insurance cover

(1) An insurer or the Guarantee Fund is required to perform the obligations arising from this Act and a motor third party liability insurance contract (hereinafter contract) in the case of an insurance case caused by a vehicle provided for in section 4 of this Act.
[RT I 2004, 14, 90 - entry into force 25.03.2004]
(2) For the purposes of this Act, road traffic is the use of a vehicle provided for in section 4 of this Act within the territory of Estonia.
(3) For the purposes of this Act, the following are not deemed to be road traffic:
1) traffic in buildings and vehicles, except in car-parks located inside buildings;
2) traffic in areas isolated and marked for the purposes of a competition or training;
3) traffic in such parts of the territory of an operating airport as are closed to traffic.
(4) Motor vehicles embarking and disembarking a passenger ferry docked at port and providing internal regular services is deemed to be road traffic.
[RT I 2008, 49, 270 - entry into force 06.12.2008]

§ 4.  Vehicles required to be insured and place where vehicle is normally based

(1) A contract shall be concluded with regard to motor vehicles and their trailers (hereinafter vehicles) which are registered or are required to be registered in the traffic register provided by the Traffic Act (hereinafter traffic register) unless otherwise provided by an international agreement.
[RT I, 01.06.2013, 1 - entry into force 01.07.2013]
(2) In addition to the provisions of subsection (1), also the following are deemed to vehicles with regard to which a contract shall be concluded:
1) trams, trolleybuses and their trailers;
2) vehicles bearing demountable state registration plates;
3) vehicles belonging to the Estonian Defence Forces unless otherwise provided in subsection (3) of this section;
4) vehicles bearing transit registration plates issued in Estonia;
5) vehicles normally based and participating in road traffic in a foreign state except a contracting state of the European Economic Area (hereinafter contracting state) concerning which no green card has been issued in Estonia.
(3) It is not compulsory to conclude a contract with regard to vehicles in the possession of the Estonian Defence Forces, Security Police Board or a police authority provided that "Defence Forces" or any of the above authorities is indicated as the owner of the vehicle in the registration certificate of the vehicle. The exemption from the obligation to insure a vehicle specified above is in force only in Estonia. If such vehicle is driven outside of the territory of Estonia, a contract must be entered into with regard to the vehicle.
[RT I 2009, 62, 405 - entry into force 01.01.2010]
(4) Vehicles normally based in another contracting state are required to be insured on the basis of the legislation of the corresponding state. A contract concluded with respect to such vehicle meets the requirement for motor third party liability insurance in Estonia provided that it conforms to the requirements for motor third party liability insurance in force in the state where the vehicle is normally based.
(5) For the purposes of this Act, a place where a vehicle is normally based means the country where the vehicle is temporarily or permanently registered or, if registration is not required, the country where the person in possession of the vehicle has permanent residence or seat. If a traffic accident was caused by a vehicle without registration plates or bearing registration plates that do not belong to the vehicle then the state where the accident took place is deemed to be the place where the vehicle is normally based.
[RT I 2007, 55, 368 - entry into force 02.11.2007]

§ 5.  Policyholder and insured person

(1) The policyholder shall be the owner of a vehicle. In the case of a contract entered into with regard to a vehicle in common ownership, the policyholder is one of the co-owners. A person indicated on the registration certificate of a vehicle as the user of the vehicle, a person authorised to use the vehicle on the basis of an authorisation document and other persons holding an authorisation document to enter into the contract are authorised to represent the policyholder when the contract is entered into with regard to the vehicle.
(2) A person in possession of a vehicle is deemed to be the insured regardless of whether the possession is lawful or unlawful. The person who has been in possession of a vehicle is deemed to be the insured regardless of whether the identity of the person is known or not.

§ 6.  Damage to be compensated by Guarantee Fund and obligations related to vehicles not covered by contract
[RT I 2004, 90, 616 - entry into force 01.01.2005]

(1) With regard to a person who sustains traffic damage, the Guarantee Fund shall perform the obligations of the insurer of the person who caused the traffic damage if the insured event was caused by:
1) an unidentified vehicle;
2) a vehicle with regard to which, at the time of occurrence of the insured event, a contract had not been concluded in violation of this Act;
3) a vehicle specified in subsection 4 (3) of this Act if, with regard to such vehicle, a contract had not been concluded in conformity to this Act.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(11) Based on the request of a compensation body of another contracting state, the Guarantee Fund is required to compensate to the injured party the damage compensated thereby which was caused by a vehicle to be conveyed or conveyed to Estonia from the other contracting state, provided that no more than thirty days have passed from the time of conveyance of the vehicle into Estonia until the time of occurrence of the insured event. Such thirty day term commences to run from the time of issue of transit registration plates to the vehicle. If no transit registration plates are issued to the vehicle, the thirty-day term shall commence to run from the time when the seller has performed the obligation to transfer the vehicle to the buyer or representative thereof.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(2) A person who owns a vehicle with regard to which, in violation of the law, no contract has been entered into shall pay the Guarantee Fund three times the amount of the insurance premium for the time during which the obligation to enter into contract was violated.
(3) If traffic damage was caused by a vehicle specified in subsection (2) of this section at the time when the vehicle, in violation of the law, was not covered by a contract, the Guarantee Fund may collect six times the amount of the insurance premium from the owner of the vehicle for such time, or reclaim the expenses relating to the payment of compensation and handling of the case from the possessor of the vehicle.
(4) If a person has paid an increased insurance premium provided in subsection (2) of this section and causes traffic damage after payment but before entry into force of the contract with regard to the same vehicle, the person is not required to pay six times the amount of the insurance premium for the time for which the person has paid triple the insurance premium.
(5) The Guarantee Fund shall file the claim provided in subsections (2) and (3) of this section to the person who, on the basis of data entered in the traffic register, was the owner of a vehicle at the time when the vehicle, in violation of this Act, was not covered by a contract.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(6) [Repealed – RT I 2006, 7, 42 – entry into force 04.02.2006]
(7) The Guarantee Fund shall approve the rates applicable to the increased insurance premiums referred to in this section which shall be calculated based on insurance premium rates which do not exceed the average insurance premium payable for a policy relating to an ordinary contract.
(8) If in violation of this Act, no contract has been entered into with regard to a vehicle, the Guarantee Fund shall immediately send the owner of the vehicle entered in the traffic register a notice to this effect.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(9) [Repealed – RT I 2007, 55, 368 – entry into force 02.11.2007]

§ 7.  Obligations of insurers

(1) Insurers shall compensate for traffic damage caused by the insured. An insurer is under obligation to service policyholders who contact the insurer.
(2) Insurers are required to ensure co-operation with other insurers and with the Guarantee Fund, in so far as this is necessary for servicing injured parties.
(3) An insurer is required to conclude contracts, issue policies and handle traffic damages using the information system of the Guarantee Fund.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(4) [Repealed – RT I 2004, 90, 616 – entry into force 01.01.2005]
(5) [Repealed – RT I 2004, 90, 616 – entry into force 01.01.2005]

Chapter 2 MOTOR THIRD PARTY LIABILITY INSURANCE CONTRACTS 

§ 8.  Motor third party liability insurance contracts

(1) Motor third party liability insurance contracts shall be entered into at least in a format that can be reproduced in writing.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(2) A contract shall specify at least the data provided for by clauses 428 (1) 1)-5) of the Law of Obligations Act. The contract shall also make reference to the right of the policyholder to lodge a complaint concerning the activities of the insurer pursuant to the procedure provided in Chapter 6 of this Act.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(3) The types of contract are as follows:
1) ordinary contracts;
2) frontier insurance contracts.
(4) In matters concerning disputes or claims arising from a contract, the parties to the contract may have recourse to the committee for resolution of insurance disputes provided for in Chapter 6 of this Act. A person who sustains traffic damage may also have recourse to the committee for resolution of insurance disputes.
(5) [Repealed – RT I 2007, 55, 368 – entry into force 02.11.2007]
(6) If damage is to be compensated for on the basis of this Act or a contract, and additionally, on the basis of a contract for optional insurance, the damage shall be compensated first on the basis of this Act or the contract, after which the remainder of the damage shall be compensated on the basis the contract for optional insurance, unless otherwise provided by the optional insurance contract.
(7) After an insurer who has the right to provide optional insurance has compensated for damage subject to compensation on the basis of this Act or a corresponding contract, the right of claim of the injured party is transferred to the insurer. In such event, the insurer who has acquired the right of claim has the rights of the injured party in the proceedings of the committee for resolution of the insurance dispute. Subsection 126 (3) of the Insurance Activities Act does not apply to insurance providers who have acquired the right of claim of an injured party.
(8) Agreements which derogate from the provisions of this Act to the detriment of the policyholder, policyholder or injured party are void.
[RT I 2007, 55, 368 - entry into force 02.11.2007]

§ 9.  Ordinary contracts

(1) Ordinary contracts shall be entered into with regard to the vehicles provided in subsection 4 (1) and clauses (2) 1)-4) of this Act. If a person specified in subsection 4 (3) of this Act expresses insurable interest, the insurer is required to conclude an ordinary contract regardless of whether or not entry into a contract with regard to the vehicle is required by this Act
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(11) In addition to the vehicles specified in subsection (1) of this section, an ordinary contract may be entered into with regard to vehicles to be conveyed or conveyed to Estonia from another contracting state before such vehicles are registered in the traffic register provided that no more than thirty days have passed from the time of conveyance of the vehicle into Estonia. The beginning of the running of such thirty days term shall be calculated pursuant to subsection 6 (11) of this Act.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(2) The insurer shall issue a policy to the policyholder at least in a format which can be reproduced in writing, except for the green card provided in section 10 of this Act which shall be issued in writing.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(3) An ordinary contract shall serve as the basis for compensation for traffic damage caused in a contracting state and, if a notation to this effect has been entered in the policy, in other countries.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(4) During the period of validity of a policy relating to an ordinary contract issued to a policyholder, other insurers shall not issue a policy for the same or an overlapping period.

§ 10.  Green cards

(1) A green card is the form of a policy relating to an ordinary motor third party liability insurance contract, applicable in the foreign countries specified in the card.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(2) An insurer shall issue green cards pursuant to the procedure provided by the Council of Bureaux and the Guarantee Fund and the provisions of subsection 434 (2) of the Law of Obligations Act do not apply thereto.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(3) An insurer shall not require any additional insurance premium or other charge for issue of a green card valid in a contracting state or the Swiss Confederation. An insurer has the right to charge an additional fee for a green card valid in another state.
[RT I 2008, 49, 270 - entry into force 06.12.2008]
(4) [Repealed – RT I 2007, 55, 368 – entry into force 02.11.2007]
(5) [Repealed – RT I 2004, 14, 90 – entry into force 25.03.2004]

§ 11.  Right to issue green cards

(1) Members of the Guarantee Fund have the right to issue green cards in accordance with the statutes and decisions of the Council of Bureaux and agreements entered into by the Guarantee Fund.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(2) [Repealed – RT I 2004, 14, 90 – entry into force 25.03.2004]
(3) If an insurer is deprived of the right to enter into contracts, the insurer shall immediately cease issuing green cards and submit all policy forms which were not issued to policyholders to the Guarantee Fund.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 12.  Frontier insurance contracts

(1) A frontier insurance contract shall be entered into with regard to a vehicle normally based in a foreign state, except for a contracting state, and a vehicle registered in the traffic register concerning which no contract valid in Estonia exists.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(2) A frontier insurance contract shall serve as the basis for compensation for traffic damage caused in Estonia.
(3) In addition to the provisions of subsection (2) of this section, a frontier insurance contract shall serve as the basis for compensation for traffic damage caused in a contracting state.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(4) In the case of a frontier insurance contract, the insurer is the Guarantee Fund.
(5) The rates applicable to frontier insurance contracts shall be approved by the Guarantee Fund.
[RT I 2004, 14, 90 - entry into force 25.03.2004; 1.05.2004]

§ 13.  Communication of information

(1) A policyholder shall provide the insurer with the information necessary to enter into the contract. At the request of the insurer, such information shall be submitted in writing.
(2) A policyholder shall immediately notify the insurer in writing of any changes in the information submitted upon entry into the contract. If a policyholder fails to notify the insurer of changes in the information and if the insurance premium increases by more than 20 per cent due to such changes, the insurer may demand a contractual penalty of 32 euros from the policyholder for each calendar month of the delay in communicating the information, but not more than 64 euros.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

§ 14.  Term of contract

(1) Ordinary contracts shall be entered into for an unspecified term except for an ordinary contract entered into with regard to a vehicle provided for in subsection 4 (3) of this Act which is valid only during the period entered on the policy issued on the basis thereof.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(2) A frontier insurance contract shall be valid during the term indicated in the policy.
(3) A contract expires or shall be terminated in the cases provided for in this Act.

§ 15.  Validity of policies

(1) The validity of policies shall commence at the time indicated in the policy but not before the expiry of the previous policy. If no indication time has been made on the policy, the validity thereof shall commence at 00.00.
(2) The validity of a policy expires at 24.00 on the date indicated in the policy.
(3) A policy shall be issued for a term of one day to twelve months.
(4) An insurer is not obligated to issue a next policy if the policyholder has insurance premium arrears.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 151.  Excess
[RT I 2004, 14, 90 - entry into force 25.03.2004]

(1) Upon the request of the policyholder and with the consent of the insurer, the parties may agree on imposition of the excess of a policyholder. No agreement shall be made for imposition of excess to a policyholder who is the consumer.
(2) [Repealed – RT I 2007, 55, 368 – entry into force 02.11.2007]
(3) Upon the imposition of the excess of a policyholder, the insurer shall pay the compensation in full and the policyholder shall pay the excess to the insurer.
(4) [Repealed – RT I 2005, 39, 308 – entry into force 01.01.2006]

§ 16.  [Repealed – RT I 2004, 14, 90 – entry into force 25.03.2004]

§ 17.  [Repealed – RT I 2005, 39, 308 – entry into force 01.01.2006]

§ 18.  Failure to pay insurance premiums

(1) Upon failure to pay the insurance premiums as required, the contract shall be terminated pursuant to the procedure provided for in section 22 of this Act.
(2) If the period of validity indicated in a policy expires but a new policy has not been issued with regard to the vehicle or release of the policyholder from payment of the insurance premiums has not been requested, the policyholder is required to pay the insurance premiums until the contract expires or release is granted from payment of the insurance premiums.
(3) The obligation of an insurer to issue a policy applies only to periods for which the policyholder has paid.
(4) Upon failure to pay the insurance premiums, the insurance premiums for no more than eighteen months and the corresponding fine for delay shall be collected.
(5) Upon failure to pay the insurance premiums, the insurer may demand a fine for delay in the amount of 0.1 per cent of the amount of the unpaid insurance premium for each day of the delay. The size of a fine for delay shall not exceed the amount of the unpaid insurance premium.
(6) [Repealed – RT I 2005, 39, 308 – entry into force 01.01.2006]

§ 19.  Premium-free contract

(1) A premium-free period of a contract is a period during which the contract is in force but the policyholder is not required to pay the insurance premium.
(2) A contract becomes premium-free as of the date agreed upon between the insurer and the policyholder after the policyholder has submitted a request to this effect. A contract shall not be made premium-free retroactively.
(3) A contract becomes premium-free if the policy holder submits a request to such effect to the insurer and the insurer issues certification concerning the contract becoming premium-free to the policy holder. The policy holder's request for making the contract premium-free and the insurer's corresponding confirmation shall be prepared at least in a format which can be reproduced in writing.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(31) The premium- free period ends upon issue of a new policy to the policy holder at the request thereof.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(32) A contract becomes premium-free upon expiry of the period of validity of the policy unless the parties have agreed that the insurer will issue a subsequent policy before the expiry of the period of validity of the previous policy.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(4) The insurer is not required to make a contract premium-free if a duplicate policy has been issued for the period with regard to which release from payment of the insurance premiums is requested.
(5) If a contract is made premium-free, the insurer shall make a notation in the policy concerning the invalidity of the policy, and indicate the date on which the premium-free period commences.
(6) The part of the insurance premium paid for the remainder of the period of validity of a policy shall be refunded to the policyholder. Up to 3 euros of an insurance premium to be refunded may be withheld in order to cover the relevant administrative expenses.
[RT I 2010, 22, 108 - entry into force 01.01.2011]
(7) During the premium-free period of a contract, the corresponding vehicle shall not be used in traffic, but the insurer has the rights arising from the contract and is under the obligation to compensate for traffic damage caused.
(8) If a vehicle is used in traffic during a premium-free period of the contract, the policyholder is required to pay triple the insurance premium for the premium-free period of the contract to the insurer.
(9) If a vehicle is used in traffic during a premium-free period of the contract and causes traffic damage, the insurer has the right to collect six times the insurance premium for the premium-free period or the expenses relating to compensation for damage and a handling fee from the policyholder.
(10) When insurance premiums are collected for a premium-free period, the premiums for no more than eighteen months shall be collected.
(11) Upon collection of increased insurance premiums, the period of time between the date on which the contract is made premium-free and the date on which the use of the vehicle in traffic is ascertained is deemed to be the duration of the premium-free period.
(12) If an insurer issues a new policy, the premium-free period of the contract expires upon commencement of the period of validity of the new policy.
(13) [Repealed – RT I 2007, 55, 368 – entry into force 02.11.2007]
(14) Frontier insurance contracts and contracts entered into with regard to the vehicles specified in subsection 4 (3) of this Act shall not become premium-free.
[RT I 2007, 55, 368 - entry into force 02.11.2007]

§ 20.  Termination of contract
[RT I 2007, 55, 368 - entry into force 02.11.2007]

(1) The insurer and policyholder shall not agree upon retroactive cancellation of the contract.
(2) A contract is terminated:
1) upon deletion of a vehicle from the register, unless the deletion is temporary;
2) if the vehicle illegally leaves the possession of the owner provided that the policy holder submits a certificate to such effect issued by a police officer to the insurer;
3) upon cancellation of the contract;
4) upon withdrawal from the contract;
5) as of the entry into force of a contract concluded with another insurer in the case provided for in section 21 of this Act;
6) in the case provided in subsection 9 (11), if after thirty days from the date on which the buyer received the vehicle, the vehicle has not been registered in a traffic register in Estonia;
7) for ordinary contracts entered into with regard to vehicles specified in subsection 4 (3) of this Act and frontier insurance contracts, upon expiry of the policy issued on the basis of the contract;
8) for contracts entered into with regard to vehicles specified in clause 4 (2) 4) of this Act, upon expiry of the validity of transit registration plates;
9) on another basis provided by law.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(3) [Repealed – RT I 2007, 55, 368 – entry into force 02.11.2007]
(4) [Repealed – RT I 2007, 55, 368 – entry into force 02.11.2007]
(5) [Repealed – RT I 2004, 14, 90 – entry into force 25.03.2004]
(6) The provisions of subsection 19 (6) of this Act apply to cancellation of contracts.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 21.  Entry into contract with other insurer

(1) A policy holder may enter into a contract with regard to the same vehicle with another insurer at any time.
(2) A contract entered into with another insurer enters into force when the policy issued based on the contract which was valid at the time of conclusion of such contract expires. If the contract entered into with the former insurer has become premium-free by the tome the new contract is concluded, the new contract enters into force as of the time it is concluded.
[RT I 2007, 55, 368 - entry into force 02.11.2007]

§ 22.  Termination of contract on initiative of insurer

(1) An insurer has the right to cancel a contract if the contract has been premium-free for twenty four consecutive months or if the policyholder has failed to pay insurance premiums for at least three consecutive months in violation of the contract, but not before the expiry of the period of validity of the existing policy.
(2) The insurer shall notify the policyholder in writing and the Guarantee Fund by electronic means of the termination of a contract in writing at least fifteen days in advance. The time of cancellation of the contract shall be indicated in the notice.
(3) During two calendar years following the cancellation of a contract due to failure to pay insurance premiums, the insurer may increase the insurance premiums payable by the person.
[RT I 2006, 21, 163 - entry into force 01.07.2006]

§ 23.  Transfer of contract
[RT I 2007, 55, 368 - entry into force 02.11.2007]

(1) Upon transfer a vehicle, the person who acquires the vehicle shall assume the rights and obligations of the policyholder specified in the contract entered into with regard to the vehicle. In the event of the death of the owner of a vehicle, the lawful possessor of the vehicle shall assume the rights and obligations of the policyholder specified in the contract.The provisions of section 524 of the Law of Obligations Act do not apply to transfer of contracts.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(2) An insurer shall calculate the size of insurance premiums according to the information relating to the new policyholder.
(3) Upon a change in policyholder in the case specified in subsection (1) of this section, the obligation of the previous policyholder under the same contract to pay unpaid insurance premiums and fines for delay relating to previous periods is not transferred to the person who acquires the vehicle. Such obligation shall be performed by the previous policyholder.
(4) Upon a change in policyholder in the case specified in subsection (1) of this section, the insurer is not required to refund the insurance premiums paid. In the case of advance payment of insurance premiums, the payment is deemed to have been made by the new policyholder.
(5) The insurer shall be informed of the transfer, on any basis, of the ownership of a vehicle in at least a format which can be reproduced in writing, whereas it is presumed that the notification obligation lies with the transferee of the vehicle. The transferee is exempt from the notification obligation only if such obligation has already been performed by the transferor. The notification obligation shall be performed not later than within five days after the transfer of ownership of the vehicle.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(6) The person who acquires a vehicle shall enter into a contract with an insurer of the person’s choice within ten days after entry of the acquisition in the traffic register. The previous contract terminates upon entry into force of the new contract and the policyholder (the person acquiring the vehicle) shall be paid, at the policyholder’s application, an amount equal to the insurance premiums prepaid for the previous contract. Such applications may be submitted within one year after the creation of the right of refund of the insurance premium; applications submitted after expiry of the said term shall be denied.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 24.  Entry into contracts on border

(1) A person driving a vehicle may cross the state border (temporary border line) only if the person holds a valid policy.
(2) The Guarantee Fund shall ensure that there is the opportunity to enter into a contract at all customs offices located at the points of entry. The possessor of a boundary construction shall ensure that the rooms and internet access necessary for contracts to be entered into are available.
(3) It is not permitted to stop a vehicle normally based in another contracting state or a vehicle not normally based in another contracting state but entering Estonia through the contracting state with the sole purpose of verifying whether the vehicle has valid insurance cover. Such prohibition is valid for both entry into and departure from the state of vehicles.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(4) Verification of the existence of valid insurance cover regarding vehicles entering the territory of Estonia which are not normally based in a contracting state is mandatory at entry points which do not border on a contracting state. Based on the State Borders Act, police officers shall prevent the passing of such vehicles if they lack valid insurance cover.
[RT I 2009, 62, 405 - entry into force 01.01.2010]

§ 25.  Verification of contracts

The police authorities have the right to verify the existence of a valid contract and policy, and the police authorities shall inform the Guarantee Fund immediately of all cases where a vehicle participating in traffic lacked a valid contract and policy. In verifying the existence of a valid contract and policy, the police authorities shall take account of the restriction arising from the first sentence of subsection 24 (3) of this Act upon checking vehicles normally based in another contracting state or vehicles not normally based in another contracting state but entering Estonia through the contracting state.
[RT I 2007, 55, 368 - entry into force 02.11.2007]

Chapter 3 INSURANCE CASES AND DETERMINATION OF EXTENT OF DAMAGE 

§ 26.  Insurance case

(1) An insurance case covered by a motor third party liability insurance contract (traffic damage) means damage caused under the conditions provided for in this section by a vehicle required to be insured.
(2) Damage is deemed to be traffic damage only if the following conditions occur concurrently:
1) the damage is caused in road traffic by a vehicle required to be insured;
2) the damage results from the movement or location of the vehicle;
3) there is a causal relationship between the movement or location of the vehicle and the damage caused;
4) the possessor of the vehicle bears civil liability as a result of causing the damage.
(3) Traffic damage includes damage caused as a result of the movement of parts or other objects which have become separated from a vehicle or load if there is a causal relationship between the movement of the vehicle and the damage. Account shall be taken of whether or not a collision with the aforementioned objects is caused by the fault of the injured party and whether the injured party could have avoided the accident.
(4) Except in the cases provided for in section 27 of this Act, traffic damage shall be compensated for on the basis of this Act and the contract and according to the extent of the liability of the insured, regardless of the involvement of the injured party in the traffic accident.

§ 27.  Compensation of damage regardless of liability
[RT I 2007, 55, 368 - entry into force 02.11.2007]

(1) Damage caused to pedestrians and cyclists due to the occurrence of an insured event shall be compensated for even if the driver of the vehicle is not liable for the damage caused. The persons listed in clause 13) of section 2 of the Traffic Act are deemed to be pedestrians.
[RT I 2010, 44, 261 - entry into force 01.07.2011]
(2) The expenses relating to the medical treatment of a driver who causes traffic damage shall be compensated for regardless of the liability of the driver except where, pursuant to the legislation of the state of the seat of the insurer, expenses relating to such medical treatment are not subject to compensation.
(3) The provisions of subsections (1) and (2) of this section are not applicable if the injured party specified in subsection (1) or the driver specified in subsection (2) causes traffic damage in connection with bodily harm caused to himself or herself or his or her suicide or if he or she is under the influence of alcohol, narcotic drugs or psychotropic substances at the instant when the traffic damage is caused.
(4) Any injury caused to a person specified in subsection (1) of this section shall be indemnified also if he or she is under the influence of alcohol, narcotic drugs or psychotropic substances at the time of the traffic accident but there is no causal relationship between the condition of the person and the traffic accident.
(5) In the case of the damage specified in subsection (2) of this section, compensation for the expenses relating to the medical treatment shall be paid only to the medical institution treating the damage to health caused by the traffic accident.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 28.  Composition of traffic damage

(1) Traffic damage may be caused to the health of a natural person (personal injury) or to a thing of a legal person (property damage).
(2) The following are personal injury:
1) damage arising from temporary incapacity for work;
2) damage arising from permanent incapacity for work;
3) expenses relating to the medical treatment of the injured party;
4) in the event of a fatal traffic accident, the decrease or loss of the maintenance support of a dependent of the injured party, and the funeral expenses;
5) non-proprietary damage related to a traffic accident.
(3) The following are property damage:
1) damage arising from injury to or destruction of a thing;
2) reasonable and necessary expenses relating to legal assistance and expert assessments.
(4) Damage related to the destruction of or injury to a vehicle shall include the state fees paid for acts performed by the authorised processor of the traffic register if register entries have to be made in connection with the traffic damage. Reasonable expenses relating to the parking of such vehicle shall also be included in the damage related to the destruction of or injury to the vehicle.
[RT I 2004, 90, 616 - entry into force 01.01.2005]

§ 29.  Damage arising from temporary incapacity for work

(1) A natural person whose income subject to social tax decreases due to damage to his or her health sustained as a result of traffic damage has the right to receive compensation for damage arising from his or her temporary incapacity for work.
(2) The amount of compensation shall be calculated on the basis of the average net income per calendar day (hereinafter net income). Net income shall be calculated on the basis of the amount of income subject to social tax received by the person during the previous period, from which income tax shall be deducted and which shall be divided by the number of calendar days in the previous period.
(3) The amount of compensation per calendar day shall be calculated as the difference between the net income before sustaining traffic damage and the net income received during the period of temporary incapacity for work.
(4) The total amount of compensation shall be calculated by multiplying the number of calendar days of temporary incapacity for work by the amount of compensation per calendar day as specified in subsection (3) of this section, less the indemnities or compensation received under any other compulsory insurance or Act.
(5) The net income of the insured before sustaining traffic damage shall be calculated as follows:
1) the income received and the number of calendar days in the twelve months immediately preceding the accident in which traffic damage was sustained shall be taken into account;
[RT I 2007, 55, 368 - entry into force 02.11.2007]
2) if, during the time immediately preceding the accident in which traffic damage was sustained, the person specified in subsection (1) of this section received income during a period of less than twelve calendar months, the actual income during such period and the corresponding duration of the period in calendar days shall be taken into account;
[RT I 2007, 55, 368 - entry into force 02.11.2007]
3) if the person specified in subsection (1) of this section is operating as an undertaking at the time the traffic damage is sustained, the income subject to social tax declared in the income tax returns of the last two calendar years shall be taken into account; in the case of a person who receives irregular income, the income of two calendar years of the person’s choice from the last five calendar years and the corresponding duration of the period in calendar days shall be taken into account;
4) if the person specified in subsection (1) of this section has been operating as an undertaking for less than two calendar years before sustaining traffic damage, the calculation of compensation shall be based on the income received during the period of operation as an undertaking and the corresponding duration of the period in calendar days;
5) in the case of a non-working or unemployed person who, before sustaining the traffic damage, was capable of working, at least 16 years of age and below pensionable age, the calculation of income shall be based on the minimum monthly wage applicable at the time of the traffic accident.
(6) In the case of a dispute, the calculation shall be based on the declared income subject to social tax received during the six months preceding the accident in which traffic damage was sustained.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 30.  Damage arising from permanent incapacity for work

(1) A natural person whose income subject to social tax decreases due to permanent damage to his or her health sustained as a result of traffic damage has the right to receive compensation for damage arising from his or her permanent incapacity for work.
(2) Permanent incapacity for work (disability) shall be proven pursuant to the procedure provided by legislation.
(3) The amount of compensation per calendar day shall be calculated similarly to the procedure provided for in section 29 of this Act, taking into account the extent of permanent incapacity for work established pursuant to subsection (2) of this section expressed as a percentage of loss of capacity for work.
(4) Compensation for permanent incapacity for work shall be calculated per month by multiplying the amount of compensation per calendar day by thirty and deducting from the result the monthly amount of indemnities and compensation receivable on a continuous basis under any other compulsory insurance or Act.
(5) Compensation for permanent incapacity for work shall be recalculated if:
1) the wages of the injured person increase;
2) compensation receivable under any other compulsory insurance by the injured party as a result of the insurance case or the amount of any other benefit, indemnity or compensation changes;
3) the injured party acquires the right to receive an old-age pension.
(6) If compensation for permanent incapacity for work is recalculated in connection with the right of the injured party to receive an old-age pension, 60 per cent of the net income of the person before sustaining traffic damage shall be taken into account.
(7) Payment of compensation for permanent incapacity for work shall be terminated if the incapacity for work provided for in subsection (2) of this section ceases to exist or if the injured party dies.
(8) Compensation for permanent incapacity for work shall be indexed to the consumer price index published during the month preceding the month of payment with regard to the consumer price index of the month of the occurrence of an insurance case. Insurers shall maintain separate records on expenses arising from price increases.
(9) Compensation for permanent incapacity for work shall be paid on a monthly basis by the fifteenth day of the following month.
(10) In the case of permanent incapacity for work, the following justified expenses shall be compensated for on a single basis within the limits established by the Minister of Social Affairs:
1) expenses relating to learning a new speciality if this would increase the ability of the injured party to cope;
2) expenses relating to the acquisition of the technical aids necessary to cope;
3) expenses relating to the adaptation of housing in the case of a physical disability.
(11) The compensation specified in subsection (10) of this section shall be paid to the person who provided the corresponding services or incurred the actual expenses, on the basis of a document certifying such expenses.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 31.  Expenses relating to medical treatment of injured party

(1) Compensation for medical expenses shall be paid to a medical institution or other competent person who:
1) treats damage to health caused by a traffic accident;
2) provides services relating to the alleviation of post-traumatic complications.
(2) An injured party shall be compensated for the following expenses relating to his or her medical treatment:
1) expenses relating to the treatment of damage to his or her health;
2) expenses relating to the purchase of medicinal products;
3) expenses relating to transportation to and from the medical institution providing the relevant treatment;
4) other direct expenses not specified in clause 1) of this subsection.
(3) Expenses are deemed to be justified if they do not exceed the prices for medical services provided for on the basis of legislation or the average market price of the corresponding services.
(4) Compensation shall be paid on the basis of documents certifying actual expenses.
(5) In the event of personal injury, certificates relating to damage to health and to treatment both preceding the traffic damage and arising from the traffic damage shall be submitted to the insurer.

§ 32.  Damage arising from fatal traffic accident

(1) In the event of a fatal traffic accident, the following persons have the right to receive compensation:
1) the person who organises the funeral of the deceased;
2) persons whose income is reduced due to the share of the deceased no longer being present in the maintenance expenses of the family.
(2) The person who actually incurs expenses relating to the funeral of a deceased person shall be compensated for the expenses on the basis of documents certifying the expenses. If more than one person incurs expenses, they shall be compensated individually. All reasonable expenses directly related to the funeral of the deceased shall be compensated for.
(3) If necessary, an insurer shall make an advance payment to the extent of up to 60 per cent of the compensation for covering funeral expenses.
(4) Compensation for reduced income (hereinafter pension) shall be paid to each family member whose income is reduced due to the share of the deceased no longer being present, taking into account the following principles:
1) the widow or widower, minor children, adult children incapacitated for work, and parents and other persons incapacitated for work who were maintained by the deceased are deemed to be persons maintained by the deceased (family members of the deceased);
2) the income of a family consists of the income of the family members and the pensions, benefits and alimony (support) received on a regular basis;
3) general family expenses account for up to 30 per cent of family income. The remainder of the income is divided between the family members; three shares of the income are apportioned to the head of the household, two shares to his or her spouse and one share to each of the remaining family members. For the purposes of this Act, the head of the household is the family member who receives the largest regular income.
4) the pension paid on a regular basis shall compensate for such part of the income of each family member as was covered by the deceased. The head of the household shall additionally be compensated for such part of the general family expenses as was covered by the deceased;
5) the pension shall be calculated pursuant to the rules for the calculation of income provided for in subsection 29 (5) of this Act.
(5) A pension shall be recalculated:
1) if the income of a family member receiving the pension has increased in comparison to the income at the time of the occurrence of the insurance case by more than the price increase during the same period (compared with the corresponding price increase index);
2) as of the month following the month in which the deceased would have attained pensionable age, whereupon the pension shall be paid in the amount of 50 per cent.
(6) Payment of a pension to a family member shall be terminated if:
1) his or her income increases to the level of his or her income before the insurance case;
2) he or she attains 18 years of age or, in the case of continuous studies, 24 years of age, and he or she is capable of working;
3) he or she becomes a member of another family or dies.
(7) If the head of the household becomes a member of another family or dies, the part of the pension apportioned to him or her to cover general family expenses shall be apportioned to the new head of the household.
(8) The part of a pension which is paid to cover general family expenses shall be reduced in proportion to the amount that the pension of the dependants is reduced due to recalculation of the pension or termination of the payment of the pension.
(9) A pension shall be paid on a regular basis once a calendar month by the fifteenth day of the following month.
(10) The amount to be paid shall be calculated by indexing the size of the pension payable to the consumer price index published during the month preceding the month of payment with regard to the consumer price index of the month of the occurrence of an insurance case. Insurers shall maintain separate records on compensation arising from price increases.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 33.  Non-proprietary damage related to a traffic accident

(1) If a person who is compensated for personal injury pursuant to this Act and the contract has had to endure extreme pain or has acquired a disability resulting in the loss or malfunction of an organ or part of his or her body due to such personal injury and if such pain or disability has been ascertained during medical assessment, the insurer shall pay a single benefit to him or her in the amount of up to 640 euros.
[RT I 2010, 22, 108 - entry into force 01.01.2011]
(2) The Minister of Social Affairs shall establish the procedure for assessing non-proprietary damage related to insured events based on which the non-proprietary damage incurred is divided by degrees of severity. Damage which, based on this Act is not subject to compensation shall be classified as damage of the first degree of severity, whereas damage for which the entire amount specified in subsection (1) of this section shall be classified as damage of the last degree of severity.
[RT I 2007, 55, 368 - entry into force 02.11.2007]

§ 34.  Damage arising from destruction of thing

(1) A thing is deemed to be destroyed if restoration thereof is technically or economically unjustified.
(2) Damage arising from the destruction of a thing consists of the usual value (the probable selling price) of the thing immediately before the insurance case and of the reasonable expenses relating to the removal of the thing from the site of the traffic accident and to the disposal of the undamaged parts of the thing.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 35.  Damage arising from injury to thing

(1) Damage arising from injury to a thing means expenses relating to the restoration of the thing and other direct expenses borne by the possessor of the thing in connection with the traffic damage, including expenses relating to repair of damage intentionally caused to the vehicle in order to save the injured party after the traffic damage was caused, and expenses relating to the removal of the vehicle from the site of the traffic accident.
(2) The manner of restoration or replacement of a damaged thing or a part thereof (the budget for the repairs, the place of restoration, or the acquisition of an equivalent thing to replace the destroyed thing) shall be co-ordinated with the insurer. The necessary expenses shall be certified.
(3) If an insurer does not consent to the manner or place suggested by the injured party for restoration (replacement) of a thing damaged in the course of an insurance case, the insurer shall notify the injured party of the enterprise where the thing is to be restored (replaced).
(4) In the case specified in subsection (3) of this section, the insurer shall issue a letter of guarantee to the injured party or the undertaking concerning payment for the restoration or replacement expenses or make an advance payment and order the corresponding work as the representative of the injured party, taking into consideration the protection of the interests of the injured party. The insurer shall ensure that the work performed and the quality of the materials used meets the requirements.
(5) If the injured party does not consent to compensation for the restoration or replacement expenses in the manner decided by the insurer, the expenses shall be compensated for in money. The maximum amount of compensation in money is the total amount of the restoration or replacement expenses suggested by the insurer. If the injured party fails to submit documents concerning the restoration or replacement expenses of the thing, compensation shall be paid in the amount of the cost of the spare parts necessary for the restoration, less an amount proportionate to the wear and tear of the spare parts. Compensation shall also be paid in the amount of the price of the services relating to the restoration, less the amount of the relevant taxes applicable to the undertaking.
(6) After comparative verification of the damage caused to a thing in the course of a traffic accident and the scope of the repair work performed or the budget for the repairs, the insurer may transfer the compensation for restoration expenses to the person performing the repair work or pay the amount to the injured party, regardless of whether the repair works have been performed or not.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 36.  Compensation for damage caused by trailer

Damage caused by a trailer shall be compensated for based on a contract entered into with regard to the vehicle drawing the trailer at the moment the damage was caused. If a trailer was not coupled at the moment of causing the damage, the damage shall be compensated for based on a contract entered into with regard to the trailer.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 37.  Right of ownership for destroyed or injured thing

If, upon compensating for damage arising from the destruction of or injury to a thing, the insurer compensates for the usual price of the thing in full, the right of ownership to the thing compensated for shall transfer to the insurer. If the thing specified above is not handed over to the insurer, the right of ownership shall not be transferred and the compensation shall be reduced by the price of the thing after the insurance case.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

Chapter 4 COMPENSATION 

§ 38.  Notification of traffic accident

(1) An injured party shall notify any insurer engaging in motor third party liability insurance in Estonia or the Guarantee Fund of a traffic accident personally or through a representative at the earliest opportunity. Notification may be oral or written.
(2) A person who causes damage in a traffic accident shall notify his or her insurer or the Guarantee Fund of the traffic accident in the manner provided for in subsection (1) of this section, but not later than five days after the traffic accident. If notification is not possible within five days with good reason, proof thereof shall be submitted to the insurer or the Guarantee Fund. A written explanation concerning the event shall be submitted and the vehicle involved in the traffic accident shall be presented for inspection within the time limit provided for in subsection (1) of this section.
(3) If a person involved in a traffic accident does not know whether he or she caused the traffic damage or is the injured party, the person shall act pursuant to the provisions of subsection (2) of this section.
(4) An insurer who receives a notice concerning a traffic accident shall forward the notice to the parties to the traffic accident, to the insurer of the person who caused the damage and to the motor third party liability insurance register.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(5) The recipient of a notice shall send a written notice concerning receipt of a notice concerning a traffic accident to the parties to the traffic accident, setting out the name of the person who sent the notice and other information obtained. If, within three days after receipt of a notice concerning a traffic accident, the insurer or the Guarantee Fund does not receive confirmation from the insurer required to compensate for the damage that the handling of the traffic accident has commenced, the insurer or the Guarantee Fund shall immediately review the damaged property and commence handling of the traffic accident. Expenses relating to the performance of the acts specified above shall be borne by the insurer required to compensate for the traffic damage.
(6) The insurer shall notify the injured party in writing of the requirement to file a written claim and of the terms provided for in subsection 42 (1) of this Act at the earliest opportunity.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 39.  Proof of damage

(1) The injured party and the person who causes the traffic damage are required to preserve, as far as possible, the condition in which the vehicles involved in the traffic accident and other damaged things were after the traffic accident, and to present the vehicles and property to the insurer for inspection. A thing is not required to be preserved in the condition in which it was after the traffic accident following inspection by the representative of the insurer or for longer than seven days after notification of the traffic accident. If the insurer submits a written request to preserve the condition of the thing damaged in the traffic accident for a longer term, it shall be preserved for fifteen days.
(2) The insurer is required to inspect the thing specified in subsection (1) of this section within seven days after notification of the traffic accident.
(3) In the event of personal injury, the insurer has the right to send the injured party for a medical examination at the expense of the insurer. The injured party is required to undergo such medical examination.
(4) If the injured party intentionally violates the requirement specified in subsections (1) or (3) of this section and if inspection of the thing or a medical examination is no longer possible or would not enable the consequences of the traffic accident to be established and, as a result, the facts of the traffic accident or the extent of the damage cannot be ascertained, the insurer may reduce the amount of compensation or refuse to compensate for the damage.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 40.  Submission of claims

(1) The injured party or the representative thereof shall submit a claim for the compensation of damage to the insurer.
(2) A claim for the compensation of damage may be filed against the person responsible for causing the traffic damage and against the insurer of the person.
(3) If a claim is filed against the insured, the insured shall immediately forward the claim to the insurer.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 41.  Claims

(1) A claim for compensation for damage shall be in writing.
(2) A person who incurs expenses relating to the medical treatment, rehabilitation or funeral of an injured party has the right to file a claim with the insurer.
(3) A claim shall set out the nature and extent of the traffic damage caused by the traffic accident and explain the circumstances relating to the traffic accident.
(4) A claim shall contain the request of the injured party concerning the manner of compensation for damage and a request, if the injured party so wishes, concerning the manner in which acts relating to restoration or replacement of the damaged thing, the medical treatment or any other acts relating to the compensation are performed, or concerning the person who is to perform such acts.
(5) If an injured party is able to assess the monetary value of the damage caused, it shall be indicated in the claim.
(6) If an injured party has evidence concerning the extent of the damage or if the injured party knows how to obtain evidence or statements and testimonies, such evidence, statements or testimonies shall be referred to in the claim or annexed to the claim.
(7) An injured party may file a claim on the form provided by the insurer.
(8) If an injured party files a proof of claim which does not contain all the facts specified in this section but is sufficient to indicate his or her wish to receive compensation, the claim is deemed to have been filed but the insurer has the right to request the submission of additional information.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 42.  Limitation period for filing claims

(1) The limitation period for assertion of a claim for compensation for damage based on an insurance contract is of equal length to the limitation period of a claim against a person liable for causing the damage.
(2) A limitation period is suspended by filing a claim with the insurer until the making of a decision.
(3) Suspension of the limitation period for the insurer also applies to the expiry of a claim against the person who caused the damage and vice versa.
[RT I 2005, 39, 308 - entry into force 01.01.2006]

§ 43.  Handling of claims

(1) An insurer who receives a claim filed against the insured is required to deal with the case and make a decision concerning compensation for damage or refusal to pay compensation. If a claim for compensation for traffic damage is filed with an insurer, the insurer shall also forward the claim for compensation to the policyholder.
(2) A claim shall be handled by the insurer who pursuant to the contract is required to compensate for the damage. Other traffic damage shall be dealt with by the Guarantee Fund.
(3) Traffic damage caused by a vehicle for which an insurer from a foreign country has entered into an insurance contract valid in Estonia shall be handled by the Guarantee Fund unless the insurer has not authorised, with the consent of the Guarantee Fund, its representative to perform such function.
(4) If insurers engage in a dispute concerning the handler of a claim and are unable to resolve the dispute within ten days after notification of the traffic accident to an insurer or the Guarantee Fund, the claim shall be handled and compensation shall be paid by the Guarantee Fund. The obligated person shall compensate the Guarantee Fund for the expenses relating to the handling of the claim and the payment of compensation.
(5) An insurer shall appoint a representative (hereinafter claims handler) to each contracting state except Estonia who has the task to handle and compensate traffic damage caused to injured parties residing or having the seat in the corresponding contracting state if:
1) the damage was caused in the contracting state which is not the country of the injured party's residence or seat;
2) the damage was caused in a country which is not a contracting state but the Guarantee Fund has a corresponding agreement with a member of the Council of Bureaux of such country.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(6) A claims handler may represent one or several insurers. An insurer is not required to appoint a claims handler to a state whose competent authority has issued an activity licence for insurance activities to the insurer.
(7) A claims handler shall:
1) collect necessary information with regard to claims and where necessary, conduct negotiations for settlement of disputes;
2) be authorised by the insurer to represent the insurer in communication with injured parties for performance of the duties provided in subsection (5) of this section;
3) have a residence or permanent establishment in a country to which the claims handler is appointed (hereinafter in this section country of location);
4) be able to communicate in the official language or official languages of the country of location or ensure that communication in such language is possible.
(8) An insurer shall notify the Guarantee Fund and the duly authorised institution of the corresponding country of location of the names and addresses of the claims handlers.
[RT I 2004, 14, 90 - entry into force 25.03.2004; 1.05.2004]

§ 44.  Bases for compensation

(1) An injured party is a person who suffers personal or property damage caused by an insurance case covered by a motor third party liability insurance contract. In the case of a fatal traffic accident, the deceased person is deemed to be the injured party. An insurer who has the right to provide optional insurance to whom, in the case provided in subsection 8 (7) of this Act, the right of claim of an injured party has been transferred shall be treated as the injured party.
(2) Traffic damage shall be compensated to the injured party and the persons specified in section 27 and subsection 32 (1) of this Act. The traffic damage caused to a person partly liable for causing the damage, shall be compensated for in proportion to the liability of the other persons liable for causing the traffic damage.
(3) The following shall not be compensated for:
1) the share of damage exceeding the maximum amount of compensation;
2) damage which a driver liable for causing damage caused to himself or herself, except the medical treatment expenses provided for in subsection 27 (2) of this Act;
3) damage, except personal injury, caused to the owner or possessor of a vehicle driven by a driver liable for causing damage;
4) loss of income, except in the cases of personal injury provided for in this Act;
5) damage incurred if a vehicle or other property damaged or destroyed in a traffic accident becomes unusable;
6) damage arising from injury to or destruction of money, securities, works of artistic value or objects of precious metals (except personal effects);
7) damage caused by an unidentified vehicle to another vehicle;
[RT I 2007, 55, 368 - entry into force 02.11.2007]
8) damage caused to a vehicle by a stone or other object on the road as a result of the movement of another vehicle;
9) damage arising from injury to or destruction of a load carried as a transport service which, at the time of accident in which traffic damage was sustained, was located in the vehicle which caused the damage. For the purposes of this Act, “transport service” means carriage of things belonging to other persons for a charge.
(4) The extent of damage caused by injury to or destruction of a vehicle shall be assessed pursuant to the prices and rates applicable in the place where the vehicle is mainly used or in the country where it is registered.
(5) The provisions of clause (3) 3) of this section do not apply to damage which the possessor of a vehicle causes to the person who is the commercial lessor, lessor or seller based on a hire purchase contract of the vehicle which caused damage. The provisions of clause (3) 3) of this section apply to damage consisting of injury to or destruction of a vehicle driven by the person who caused damage.
(6) A vehicle is deemed to be unidentified if information necessary for the identification of the vehicle is not available.
(7) As an exception from the provisions of clause (3) 7) of this section, damage to a vehicle caused by an unidentified vehicle shall be compensated if serious personal injury or death was caused to the injured party in the course of the same insured event. Personal injury is deemed to be serious if the injured party acquires the right, to any extent, for being compensated for the non-proprietary damage provided in section 33 of this Act. In compensation of the damage caused to a vehicle, excess of the injured party in the amount of 500 euros applies.
[RT I 2007, 55, 368 - entry into force 02.11.2007]

§ 45.  Term for compensation
[RT I 2007, 55, 368 - entry into force 01.01.2006]

(1) A decision concerning compensation or refusal to compensate for traffic damage shall be made immediately after obtaining the relevant information but not later than within thirty days as of submission of a claim to the insurer who is required to compensate for the damage.
(11) The insurer obligated to compensate for the damage provided in clauses 43 (5) 1) and 2) of this Act, or the claims handler thereof is required to decide on compensation for such damage without delay after obtaining necessary information for making the decision but not later than within three months after the corresponding claim was filed with the insurer obligated to compensate or the claims handler thereof. If liability for causing traffic damage is contested and the damage has not been determined to the full extent, the insurer or the claims handler thereof is required to provide a reasoned response to the claim submitted by the injured party within the term specified above.
(2) If civil, criminal or misdemeanour proceedings or proceedings of the committee for resolution of insurance disputes have been commenced with regard to a case and such proceedings are relevant to the making of the decision, the term provided for in subsection (1) of this section shall be extended by the duration of such proceedings. The term shall also be extended if a delay in deciding on compensation or in payment of compensation is caused by circumstances which depend on the applicant for compensation.
(3) If the extent of traffic damage cannot be ascertained within the term specified in subsection (1) of this section, a decision on compensation shall be made with regard to the part of the damage the extent of which is known.
(4) In the case of payment of compensation to the injured party, the compensation shall be transferred on the working day following the date on which the decision on compensation is made or on the working day following receipt of the relevant bank account number if such number is not known at the time the decision on compensation is made. If compensation is delayed, the insurer required to compensate shall pay a fine for delay to the applicant for compensation to the extent provided in section 113 of the Law of Obligations Act.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(41) The insurer of a person who caused an insured event or the claims handler thereof who fails to make a reasoned offer or respond to the claim of the injured party within the term specified in subsection (11) of this section is required to pay a fine for delay to the injured party on the compensation amount offered by the insurer or imposed by the court to the extent provided in section 113 of the Law of Obligations Act.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(5) [Repealed – RT I 2007, 55, 368 – entry into force 02.11.2007]

§ 46.  Decisions of insurer

(1) The insurer is required to submit the decision on compensation of damage or refusal to compensate damage in at least a format which can be reproduced in writing to the person applying for insurance indemnity and policy holder.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(2) The decision specified in subsection (1) of this section shall set forth the source data and reason for the decision and make reference to the legal basis of the decision.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(3) A decision specified in subsection (1) of this section shall be dispatched on the working day following the date on which the decision is made.

§ 47.  Assessment of extent of traffic damage

(1) The extent of damage arising from temporary or permanent incapacity for work or damage arising from the death of the injured party shall be assessed on the basis of medical documents and documents certifying the income of the injured party before and after the insurance case and the expenses arising from the insurance case.
(2) The extent of property damage shall be assessed on the basis of information and documents submitted certifying the value of the damaged property or the restoration costs.
(3) In the case of compensation for property damage, the objective shall be to restore the situation which existed before the insurance case. Compensation shall cover reasonable expenses relating to the restoration of the situation which existed before the insurance case.
(4) It shall be presumed that quality details and parts are used in the restoration of property.
(5) It is permitted to use equally worn-out details and parts in the restoration of depreciated property.
(6) In deciding on the method of and expenses relating to the restoration or replacement of property, the insurer need not take into consideration the expenses desired or incurred by the injured party but shall take guidance from such expenses as are deemed reasonable and necessary.
(7) If property damage is compensated for in the form of compensation for expenses relating to restoration or replacement of the property but restoration or replacement of the property does not commence within six months after the insurance case due to circumstances depending on the injured party, compensation shall paid in the amount specified in the decision concerning compensation.
(8) The form of compensation shall be decided by the insurer. In the event of a disagreement, compensation shall be paid in money.

§ 48.  Right of recourse
[RT I 2004, 14, 90 - entry into force 25.03.2004]

(1) The Guarantee Fund has the right to file a recourse action:
1) against the possessor of a vehicle if traffic damage was caused by the vehicle and it was not covered by a contract at the time the traffic damage was caused, unless the Guarantee Fund has submitted a claim for payment of six times the amount of the insurance premium specified in subsection 6 (3) of this Act to the owner of the vehicle;
[RT I 2004, 14, 90 - entry into force 25.03.2004]
2) against the insurer if traffic damage was caused by an unidentified vehicle which is subsequently identified and ascertained to be covered by a contract.
[RT I 2004, 14, 90 - entry into force 25.03.2004]
3) against the relevant compensation body of a contracting state if traffic damage was caused by a vehicle registered in the traffic register during the time when the vehicle was conveyed from Estonia to another contracting state, provided that at the time of the insured event, not more than thirty days had passed from the time of issue of transit registration plates to the vehicle or transfer of the vehicle by the seller to the buyer or representative thereof;
[RT I 2007, 55, 368 - entry into force 02.11.2007]
4) against the owner of the vehicle if traffic damage was caused by a vehicle regarding which no contract has been concluded in conformity to subsection 4 (3) of this Act.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(2) An insurer or the Guarantee Fund has the right to file a recourse action:
1) against the possessor of a vehicle which caused damage if the traffic damage was caused at his or her will;
2) against the possessor of the vehicle who drove the vehicle under the influence of alcohol, narcotic or psychotropic substances, who used such substances directly after the occurrence of the traffic accident or who refused to allow the content of such substances in his or her breath or blood to be established;
[RT I 2007, 55, 368 - entry into force 02.11.2007]
3) against the possessor or owner of a vehicle which caused damage if the driving of the vehicle was entrusted to a person under the influence of alcohol, narcotic drugs or psychotropic substances;
4) against the possessor or owner of a vehicle which caused damage if the person driving the vehicle did not hold the right to drive vehicles in the corresponding category, or such right was suspended or if the driving of the vehicle was entrusted to a person who did not hold the right to drive vehicles in the corresponding category;
[RT I 2004, 14, 90 - entry into force 25.03.2004]
5) against the possessor of a vehicle which caused damage if he or she had unlawfully gained possession of the vehicle at the time of the insurance case;
6) against a policyholder if the insurance premium for the period covering the time of the insurance case was not paid by the moment of occurrence of the insurance case, and in the case provided for in subsection 19 (9) of this Act;
[RT I 2004, 14, 90 - entry into force 25.03.2004]
7) against the possessor of a vehicle which caused damage if the driver of the vehicle left the site of the traffic accident in violation of legislation currently in force;
8) against the possessor of a vehicle which caused damage, to the extent of 30 per cent of the amount of the compensation but not more than 450 euros, if the possessor failed to notify the insurer or the Guarantee Fund of the traffic accident within the term prescribed by this Act.
[RT I 2010, 22, 108 - entry into force 01.01.2011]
9) against the possessor of a vehicle which caused damage, to the extent of 30 per cent of the amount of the compensation but not more than 450 euros, if the possessor failed to present the vehicle for inspection at the request of the insurer or the Guarantee Fund or in the case of failure to submit documents or information requested in writing in order to ascertain the facts relating to the traffic damage.
[RT I 2010, 22, 108 - entry into force 01.01.2011]
(3) Justified expenses relating to dealing with a case shall also be collected by way of a recourse action provided for in this section.

§ 49.  [Repealed – RT I 2007, 55, 368 – entry into force 02.11.2007]

§ 491.  Compensation by Guarantee Fund for damage caused by insured event occurring in foreign state

(1) In the cases provided for in clauses 43 (5) 1) and 2) of this Act, the injured party may address a claim for compensation of damage to the Guarantee Fund, if:
1) no reasoned response has been given to the injured party’s claim for compensation of damage within three months after the date of filing the claim with the insurer of the person responsible for causing the traffic damage (hereinafter in this Chapter insurer) or the claims handler appointed by the insurer to the Republic of Estonia (hereinafter in this Chapter representative), or
2) the insurer has not appointed a representative, or
3) traffic damage was caused by an unidentified vehicle or if the insurer providing insurance coverage for the vehicle cannot be identified within two months after the accident.
(2) The Guarantee Fund shall immediately inform the insurer or its representative, and the institution which, in the cases specified in subsection (1) of this section, is liable for payment of compensation for damage in the contracting state where the insurer was issued the activity licence, and the person responsible for causing the traffic damage that the Guarantee Fund has received a claim for compensation of damage from the injured party, and shall respond to the claim within two months after receipt thereof.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(3) If the Guarantee Fund establishes that the insurer has not dealt with the case or that compensation for damage has not been carried out in compliance with the requirements, the Guarantee Fund is liable for payment of compensation for damage to the injured party.
(4) If upon handling of a claim, it becomes evident that the insurer has handled and compensated for the damage in compliance with the requirements, the Guarantee Fund refuses to compensate the damage and provide the reasons therefor. Handling of a claim by the Guarantee Fund shall be terminated if, within two months after the date on which the claim was filed by the injured party, the Fund receives a reasoned response from the insurer or its representative.
(5) In the case specified in clause (1) 2) of this section, the Guarantee Fund shall not handle a claim for compensation of damage filed by the injured party if the injured party has submitted the claim directly against the insurer and has received a reasoned response within three months after filing the claim. The injured party has no right to file a claim with the Guarantee Fund if the injured party has initiated judicial proceedings directly against the insurer.
(6) If the Guarantee Fund has compensated, in part or in full, for the damage sustained by the injured party, the Fund has the right to reclaim the amount paid for compensation from the institution specified in subsection (2) of this section. The rights of the injured party against the person responsible for causing the traffic damage and the insurer thereof are transferred to the relevant institution.
(7) If traffic damage was caused by an unidentified vehicle or if the insurer providing insurance coverage for the vehicle cannot be identified within two months after the accident, and the Guarantee Fund has compensated the injured party for the damage, the Guarantee Fund shall have the right to file a recourse action against:
1) the institution liable for payment of compensation for traffic damage in the territory of the state in which the vehicle is normally based, provided that the insurer cannot be identified;
2) the institution liable for payment of compensation for traffic damage in the territory of the contracting state where the accident occurred, provided that the damage was caused by an unidentified vehicle or a vehicle of a third country.
[RT I 2007, 55, 368 - entry into force 02.11.2007]

Chapter 5 RATES 

§ 50.  Bases for rates

An insurer shall establish the rates taking into account the motor third party liability insurance statistics, the traffic damage caused by the vehicle in road traffic during the previous insured period, the length of the period covered by the insurance premium and other factors. The rate also includes the operating expenses of the insurer which, among other, shall cover the membership fee payable to the Guarantee Fund and the supervision fee payable to the Financial Supervision Authority.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 51.  Sum insured

(1) For traffic damage sustained in Estonia, the limits of payment of compensation for traffic damage (hereinafter sum insured) shall be 1 million euros for one insured event in the case of property damage and 5 million euros in the case of personal damage.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(2) The insurer is required to compensate for the traffic damage caused by the occurrence of an insured event within the limits of the sums insured provided in subsection (1) regardless of the number of injured parties and apply the insured sum valid at the time of occurrence of the insured event. If, as a result of the occurrence of an insured event, damage is caused to more than one injured party and the sum total of the claims filed by the injured parties with the insurer or the initial extent of damage estimated by the insurer exceeds the sums insured provided by subsection (1) of this section, then the damage shall be compensated to the injured parties in proportion to the damage sustained by each injured party.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(3) If damage is sustained in Estonia by a vehicle with regard to which an insurance contract valid in Estonia has been concluded by a foreign insurer who is not a member of the Guarantee Fund, and the sums insured are higher in the country of location of such insurer than in Estonia, then the sums insured of such country shall be applied.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(4) If the insurer compensates for personal or property damage sustained in an insurance case which occurred in a foreign country on the basis of a green card, legislation and sums insured in force in such state are to be applied upon compensation.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 52.  [Repealed – RT I 2004, 14, 90 – entry into force 01.05.2004]

Chapter 6 RESOLUTION OF DISPUTES 

§ 53.  Acknowledgement of obligation

In the event of a traffic accident, acknowledgement of an obligation by a policyholder regarding the claim of the injured party for compensation for traffic damage or performance of the claim with regard to the insurer according to section 523 of the Law of Obligations Act are not valid.
[RT I 2005, 39, 308 - entry into force 01.01.2006]

§ 54.  Representation of insured

If a claim is filed against the insured, the insurer shall represent the insured in the dispute with the injured party unless otherwise agreed. The extent of the right of representation shall not exceed the insurance cover arising from the contract.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 55.  Committee for resolution of insurance disputes

(1) The committee for resolution of insurance disputes (hereinafter committee) is an independent institution for the extra-judicial resolution of disputes related to insurance issues. Actions with the committee shall be filed through the Guarantee Fund.
(2) Actions against the activities of an insurer or the Guarantee Fund may be filed with the committee. The committee shall hear an action only if the person against whom the action is filed grants written consent to the hearing of the action by way of proceedings of the committee.
(3) An action shall be heard by the committee consisting of three committee members. The person filing an action and the person against whose activities the action is filed shall both select one committee member from the list of committee members and the two committee members selected shall select the chairman of the committee from among the members of the board of the committee.
(4) The consent provided for in subsection (2) of this section is not necessary for the hearing of a claim filed against an insurer providing obligatory insurance and such insurer is required to participate in the committee proceeding. If the insurer fails to appoint a committee member within seven days after the receipt of the action by the insurer, the chairman of the board of the committee shall appoint the committee member.
(5) The list of committee members (hereinafter list) shall be approved by the Minister of Finance for one calendar year. The list shall consist of up to forty persons. Proposals to enter a person in the list of committee members may be submitted by all persons and state agencies. A candidate for committee member shall submit a written application for entry in the committee list to the committee. A committee formed by the Minister of Finance shall select the suitable candidates from among the candidates presented.
(6) A committee member shall have academic higher education and be proficient in insurance law.
(7) A committee member may apply to the Ministry of Justice for deletion from the list at his or her own request.
(8) Complaints made with respect to the activity of members of the committee shall be heard by the board of the committee. The member of the board of the committee with respect to whose activity a complaint is filed shall not participate in making the decision. If, based on a complaint, a member of the committee is found to be unsuitable for the position of a committee member, the board of the committee shall make a proposal to the Minister of Finance to delete the committee member from the list.
(9) Based on the proposal of the board of the committee, the Minister of Finance shall make a decision on deletion of a committee member from the list by way of a decree to be issued within five working days after receipt of the proposal. The decision shall be reasoned. A person who opposes the decision may file a complaint against the decision with the Minister of Finance or a court within fifteen working days after the date of making the decision. The Guarantee Fund and the Ministry of Finance shall publish the list of committee members on their web sites.
[RT I 2005, 39, 308 - entry into force 01.01.2006]

§ 56.  Board of committee

(1) After approval of the list of committee members, the committee members shall elect the board of the committee consisting of up to ten members from among the committee members entered in the list.
(2) The member of the board of the committee elected by the committee members shall act as chairman of the committee hearing an action.
(3) Harmonisation of the procedures and practices of the committee shall also be one of the functions of the members of the board of the committee.
(4) The members of the board of the committee shall elect from among themselves the chairman of the board of the committee, who shall organise the work of the committee.
(5) The chairman of the board of the committee shall have academic higher education in law, be proficient in insurance law and have at least five years’ working experience in the field of insurance.
[RT I 2005, 39, 308 - entry into force 01.01.2006]

§ 57.  Hearing of actions by committee

(1) The board of the committee shall approve the procedure for the proceedings of the committee.
(2) Provisions concerning civil procedure apply to committee proceedings in issues which are not regulated, taking into account the specifications prescribed for committee proceedings.
(3) If a committee member has personal, direct or indirect interest in the decision on a matter, or suspicion arises with regard to his or her impartiality due to other facts, the chairman of the committee shall remove such committee member. Removal of a committee member may be requested by a committee member or a participant in the proceeding.
(4) If the chairman of the committee is not impartial or cannot participate in the hearing of an action, he or she shall remove himself or herself or the corresponding decision shall be made by the committee members selected by the parties.
(5) In the case of a removal, a proposal shall be made to the corresponding party to select a new committee member or the committee members shall elect a new chairman for the committee from among the members of the board of the committee. Removal is permitted in a session of the committee before commencement of the hearing on the merits of the matter.
(6) If the person against whom an action is filed consents to the hearing of the action by way of committee proceedings, the committee shall commence hearing the action within twenty days after the committee members have been appointed. The committee shall make a decision within ten days of the commencement of the hearing of the action.
(7) The committee shall summon the parties or party, and at the request of a committee member, an interested person, to the hearing of the action. The insurer is required to submit all documents collected in connection with the accident in which traffic damage was sustained to the committee.
(8) The committee shall hear an action by way of an oral procedure. If a party or interested person fails to appear, the action may be heard without the presence of the party who failed to appear. Minutes shall be prepared concerning a committee hearing, and the minutes shall set out the course of the hearing and the principal positions of the parties presented orally. The chairman of the committee and the court reporter shall sign the minutes.
(9) The committee shall return an action without hearing it if there is an unfinished court action in the same matter or a court judgment has entered into force in the same matter. The committee shall return an action without hearing it if the person against whom the action is filed does not consent to the hearing of the action by way of committee proceedings, except in the case provided in subsection 55 (4) of this Act.
(10) The committee shall return an action without hearing it if additional information, documents or expert assessments are necessary for hearing the action but the person required to submit such information, documents or assessments to the committee fails to do so during the term prescribed.
(11) Committee members shall not disclose information which has become known to them in the proceedings of the committee. Documents concerning the proceedings of the committee shall be preserved in the Guarantee Fund.
[RT I 2005, 39, 308 - entry into force 01.01.2006]

§ 58.  Decision of committee

(1) The chairman of the committee shall prepare a reasoned decision concerning the hearing of an action. The decision shall be made by way of voting. All the members of the committee shall sign the decision. If there is a dissenting opinion, such opinion shall be included in writing in the text of the decision or shall be annexed to the decision on a separate sheet. A dissenting opinion annexed on a separate sheet shall be signed by the committee member who holds the dissenting opinion.
(2) A decision of the committee shall also include, as parts thereof, a description of the action and objections, and an analysis of the matter. A decision of the committee shall set out the date of receipt of the action, the time of hearing the action, and the names and authority of the persons participating in the hearing, the evidence submitted and the time at which the decision enters into force.
(3) A decision of the committee shall be published on the website of the Guarantee Fund within two working days after the committee members sign the decision. A decision of the committee which has been signed shall be sent to the parties of the dispute without delay.
(4) The decision of the committee enters into force with respect to a party on the tenth day after delivery of the decision to the party but not later than on the thirtieth day after publication of the decision pursuant to the procedure provided by subsection (3) of this section. The decision does not enter into force if, within such term, a party files a claim with a court against the other party in the same matter. The party who files a claim with a court shall submit a copy of such claim to the Guarantee Fund.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(5) A decision of the committee enters into force if the court fails to review the petition specified in subsection (4) of this section. The chairman or substitute chairman of the board of the committee shall issue a decision of the committee bearing a notation regarding entry into force of the decision to a person who requests issue thereof. If a part of a decision of the committee is contested, the remaining part of the decision shall enter into force. In adjudicating the matter, the court is bound by the decision of the committee in the part in which it is not contested.
(6) If the committee refuses to satisfy a petition or satisfies it in part, the petitioner may file an action with a court for satisfaction of the matter in the part it was not satisfied. Only the claims filed with the committee may be made in an action.
(7) If the committee satisfies a petition in full or in part, the other party may file a petition with a court and request that the court hear the petition filed with the committee by way of an action. In such case the person who addressed committee is the plaintiff and the party who filed a petition with the court is the defendant.
(8) A state fee equal to the amount which the plaintiff should have paid in the case of filing of an action shall be paid for the petition specified in subsection (7) of this section.
(9) In the case provided in subsection (7) of this section, the petition is deemed to be a statement of claim. Where necessary, the court shall grant the parties a term for filing the petition in the format prescribed for statements of claim in order to additionally substantiate their opinions and present additional evidence. The court is not required to deliver the documents that have been submitted to the committee to the parties.
(10) If an action or a petition is filed with the court in a matter which has already been adjudicated by the committee then notice to such effect shall be made in the action or petition and a copy of the decision shall be annexed to such document. Upon receipt of an action or petition, the court shall request the materials related to the adjudication of the matter from the committee and include them in the file. The submitted evidence are deemed to have been submitted to the court.
(11) If, in the case specified in subsection (9) of this section, the person who addressed the committee fails to submit the petition in the format prescribed for statements of claim within the term prescribed by the court, the court shall refuse to hear the statement of claim. In such case, the decision of the committee does not enter into force in the part in which it was contested. When granting the plaintiff a term for filing of the petition in the format prescribed for a statement of claim, the court shall draw the attention of the plaintiff to such circumstance.
(12) A person who has filed the petition specified in subsection (7) with a court may withdraw the petition on the same bases and pursuant to the same procedure as prescribed for withdrawal of an action. The decision of the committee enters into force if the petition is withdrawn.
[RT I 2006, 7, 42 - entry into force 04.02.2006]

§ 59.  Expenses of committee

(1) The hearing of an action by the committee shall be free of charge for the party who files the action.
(2) The Minister of Finance shall establish the rates and procedure for remuneration of committee members.
(3) If the committee makes a decision, in full, against the insurer, the insurer shall bear the expenses of the committee. If the committee makes a decision, in part, against the insurer, the insurer shall bear the expenses of the committee in proportion in compliance with the decision of the committee. In the case of other types of decision, the Guarantee Fund shall bear the expenses of the committee.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(4) The Guarantee Fund shall ensure the administration of the committee, taking of minutes at the sessions of the committee, publication of the decisions, availability of the session room, and in-service training for the committee members.
(5) If an action which is heard does not pertain to motor third party liability insurance, the expenses relating to the hearing of the action shall be borne by the person against whom the committee decides.
(6) The expenses of the committee are collected from the obligated person on the basis of the decision of the committee which sets out the due date for fulfilment of the claim. In fulfilment of the claim is delayed, the Guarantee Fund shall submit the claim to the bailiff.
[RT I 2005, 39, 308 - entry into force 01.01.2006]

Chapter 7 GUARANTEE FUND 

§ 60.  Guarantee Fund
[RT I 2004, 14, 90 - entry into force 25.03.2004]

(1) The Guarantee Fund is a non-profit association which performs the functions arising from this Act. Reference shall be made in the statutes of the Guarantee Fund to the fact that the Guarantee Fund is a fund operating on the basis of this Act. Only one Guarantee Fund operating on the basis of this Act shall be entered in the register of non-profit organisations and foundations (hereinafter register). The founders of the Guarantee Fund decide on the name of the Fund.
(2) All insurers who have the right to operate in Estonia as insurers providing motor third party liability insurance become members of the Guarantee Fund.
(3) An activity licence for providing motor third party liability insurance issued to an insurer who is not a member of the Guarantee Fund enters into force as of the moment when the insurer becomes a member of the Guarantee Fund.
(4) The Guarantee Fund is a member of the Council of Bureaux and the bureau for green cards in Estonia which also operates as an information centre within the meaning of Article 5 of Directive 2000/26/EC of the European Parliament and of the Council on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles and amending Council Directives 73/239/EEC and 88/357/EEC (Fourth motor insurance Directive) (OJ L 181, 20.07.2000, pp. 65–74).
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(5) [Repealed – RT I 2007, 55, 368 – entry into force 02.11.2007]
(6) [Repealed – RT I 2004, 14, 90 – entry into force 25.03.2004]
(7) Compensation paid by the Guarantee Fund on the basis of a contract or this Act is equal to insurance indemnity.
(8) [Repealed – RT I 2004, 14, 90 – entry into force 25.03.2004]

§ 61.  Functions of Guarantee Fund

(1) With regard to a person who sustains traffic damage, the Guarantee Fund shall, pursuant to the procedure and to the extent provided for in this Act, perform the obligations of the insurer of the person who caused the traffic damage.
(2) The Guarantee Fund may act as the insurer providing frontier insurance without requiring an activity licence therefor.
(3) The Guarantee Fund shall handle the traffic damage caused in Estonia by a person insured with a green card issued by a foreign insurer, unless the foreign insurer handles the damage. The Guarantee Fund shall handle the traffic damage caused in the cases provided in §§ 491 of this Act.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(4) [Repealed – RT I 2004, 14, 90 – entry into force 25.03.2004]
(5) The Guarantee Fund shall maintain the motor third party liability insurance register provided for in section 66 of this Act.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(6) The Guarantee Fund shall participate in activities relating to traffic safety and shall enable the Road Administration and institutions responsible for traffic supervision to access the motor third party liability insurance register provided in section 66 of this Act for such purpose.
[RT I 2007, 55, 368 - entry into force 02.11.2007]
(7) In the event of the bankruptcy of a member of the Guarantee Fund, the general meeting of the Guarantee Fund may decide that the obligations of the bankrupt member arising from motor third party liability insurance contracts with regard to injured parties shall be performed by the Guarantee Fund. In such case, a corresponding contract shall be entered into with the bankrupt insurer and the Guarantee Fund shall acquire the right of claim against such insurer in proportion to the extent of the obligations assumed, less the price of the property transferred for the purposes of the performance of the obligations.
(8) The Guarantee Fund shall not assume the obligations specified in subsection (7) of this section if assumption of the obligations is not possible taking into account the financial situation of the Guarantee Fund or it may cause the bankruptcy of a member of the Guarantee Fund.
(9) In addition to the functions provided for in this section, the Guarantee Fund shall perform other functions provided for in this Act and in the contracts entered into.
(10) The Guarantee Fund shall analyse the motor third party liability insurance statistics, and forward, on a regular basis, the results thereof to the Financial Supervision Authority.
[RT I 2004, 14, 90 - entry into force 25.03.2004; 1.05.2004]

§ 62.  Management of Guarantee Fund

The Guarantee Fund shall be managed in compliance with the Non-profit Associations Act, taking into account the specifications prescribed in this Act.
[RT I 2004, 90, 616 - entry into force 01.01.2005]

§ 63.  Assets of Guarantee Fund

(1) The assets of the Guarantee Fund shall be used to perform the functions arising from this Act.
(2) [Repealed – RT I 2004, 90, 616 – entry into force 01.01.2005]
(3) The procedure for determination of the membership fee of the Guarantee Fund shall be provided by the statutes of the Guarantee Fund in compliance with the principle of equal and uniform treatment of the members. Membership fees must enable the obligations of the Guarantee Fund to be performed
(4) If the assets of the Guarantee Fund are not sufficient for its obligations to be performed, the members shall cover the amount of the deficiency by way of a membership fee paid pursuant to the provisions of the statutes of the Guarantee Fund.
(5) In the case specified in subsection (4) of this section, a claim for payment of an additional membership fee shall be submitted within twenty days after the basis for the submission of the claim has become evident. The additional membership fee shall be paid within forty days as of receipt of the corresponding claim. In the case of a delay in payment, a fine for delay shall be imposed in the amount of 0.1 per cent of the amount of the claim per day, although the total fine for delay shall not exceed the total of the claim. If a member fails to perform its obligation, a new claim which has been increased by such unpaid amount shall be submitted to the other members.
(6) The statutes of the Guarantee Fund shall set out the obligations of the members of the Guarantee Fund to the Guarantee Fund and the procedure for the performance of such obligations.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 64.  Resignation, exclusion or termination of membership of members of Guarantee Fund

(1) A member of the Guarantee Fund may resign membership in the Guarantee Fund by transfer, pursuant to the procedure provided in the Insurance Activities Act, of the motor third party liability insurance portfolio of the member to another insurer who holds an activity licence for the provision of motor third party liability insurance.
(2) The provisions of section 16 of the Non-profit Associations Act do not apply to the members of the Guarantee Fund.
(3) The membership of a member of the Guarantee Fund terminates upon expiry of the activity licence for the provision of motor third party liability insurance of the member.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 65.  Application of Insurance Activities Act to Guarantee Fund

(1) The Guarantee Fund is deemed to be the insurer within the meaning of the Insurance Activities Act and the Insurance Activities Act applies to the Guarantee Fund with the specifications arising from this Act.
(2) Chapter 2 and Division 2 of Chapter 3 of the Insurance Activities Act do not apply to the Guarantee Fund.
(3) The Guarantee Fund shall inform the Financial Supervision Authority of the pending approval of its statutes (amended statutes) or the amendments thereto by submitting the draft statutes to the Financial Supervision Authority no later than fifteen days before deciding such issue.
(4) The Financial Supervision Authority shall make a decision to approve or refuse to approve the draft statutes of the Guarantee Fund within ten days after receiving the document specified in subsection (3) of this section. The Financial Supervision Authority shall promptly inform the Guarantee Fund of the decision.
(5) The Financial Supervision Authority shall not approve the draft statutes of the Guarantee Fund if it does not comply with the provisions of this Act.
[RT I 2004, 90, 616 - entry into force 01.01.2005]

§ 66.  Motor third party liability insurance register

(1) The motor third party liability insurance register (hereinafter register) is a database which is maintained for the purpose of ensuring the existence and accessibility of the data necessary for the performance of the tasks provided for the Guarantee Fund and its members in this Act.
(2) The Guarantee Fund is the chief and authorised processor of the register.
(3) The register is maintained in accordance with the Acts which ensure the protection of databases and personal data, taking account of the specifications arising from this Act.
(4) The register data concerning insurance protection is presumed to be correct.
(5) The register shall contain the data for conclusion of motor third party liability insurance contracts and compensation of damages necessary to the parties of motor third party liability insurance contracts, injured parties of insured events and other relevant parties.
(6) Data contained in the register shall be accessible for use for collecting and analysing statistics concerning motor third party liability insurance and for research related to damage prevention and traffic safety.
(7) Members of the Guarantee Fund and the representatives of insurers of other countries provided in subsection 43 (3) of this Act are required to submit data to the register and process such data pursuant to the procedure established by the chief processor of the register. The chief processor of the register is required to ensure, in real time, access to register data to the persons provided in this subsection.
(8) Other persons have the right to use register data if this is necessary for the performance of the tasks arising from this Act or other legislation. Data shall be issued to such persons pursuant to the procedure provided by the chief processor of the register.
(9) The chief processor of the register shall ensure that the following information is issued to the injured party or representative thereof if they have a legitimate interest therein:
1) data concerning the vehicle which caused the alleged traffic damage and the owner or possessor of the vehicle;
2) the number of the policy issued to the vehicle which caused the alleged traffic damage;
3) the name and contact details of the insurer;
4) the name and address of the claims handler of the insurer;
5) the name of the institution liable for the compensation of damage if the damage was caused by a vehicle specified in subsection 4 (3) of this Act if no contract exists with regard to the vehicle.
(10) Upon exchange of the information specified in subsection (9) of this section, the chief processor of the register shall cooperate with the duly authorised institution of the country of residence or seat of the injured party. Provision of the information specified in subsection (9) of this section to the injured party shall be ensured on the working day following the date on which such person requests the information. The injured party has the right to obtain the information within at least seven years after the date of occurrence of the insurance case.
(11) The chief processor of the register shall ensure the issue of the following information to the insurer concluding a contract or a representative of such insurer:
1) data on all concluded insurance contracts and issued policies;
2) data in the traffic register concerning the vehicle, registry card and persons specified therein;
3) data in national registers concerning the identity documents of the policy holder or representative thereof.
(12) The chief processor of the register shall guarantee the following information to the insurer handling a claim or representative thereof:
1) data on insurance contracts and issued policies;
2) data on notices concerning traffic accidents and claims;
3) data in the traffic register on the driving privileges of the participants in traffic accidents related to claims;
4) data in the traffic register on the roadworthiness tests of the vehicles related to claims;
5) other data in the register facilitating the handling of claims.
(13) At the request of the policy holder, the insurer or the Guarantee Fund shall issue a certificate concerning insured events caused by the vehicle or absence of such events to the person. The certificate shall set out the data specified above for the five years preceding the making of such request. The insurer or the Guarantee Fund shall issue the certificate within 15 days as of the receipt of the request.
(14) In order to perform the tasks specified in this section, the chief processor of the register has the right to obtain necessary data from the traffic register.
[RT I 2007, 55, 368 - entry into force 02.11.2007]

Chapter 71LIABILITY 
[RT I 2002, 63, 387 - entry into force 01.09.2002]

§ 661.  Driving vehicles without motor third party liability insurance contract and policy

(1) Driving a vehicle without motor third party liability insurance contract and valid policy is punishable by a fine of up to 100 fine units.
(2) The provisions of the General Part of the Penal Code and the Code of Misdemeanour Procedure apply to misdemeanours provided for in this section.
(3) Extra-judicial proceedings concerning the misdemeanours provided for in this section shall be conducted by a police authority.
[RT I 2009, 62, 405 - entry into force 01.01.2010]

Chapter 8 IMPLEMENTING PROVISIONS 

§ 67.  Bringing activities of Estonian Traffic Insurance Foundation into conformity with provisions of this Act

(1) As of the entry into force of this Act, contracts shall be entered into only by insurers who are members of the Estonian Traffic Insurance Foundation. If an insurer who holds an activity licence for the provision of motor third party liability insurance enters into a contract as an insurer after the entry into force of this Act, the insurer is thereby deemed to have applied for membership of the Estonian Traffic Insurance Foundation and is also deemed to have become a member of the Estonian Traffic Insurance Foundation as of the moment at which the contract is entered into. If an insurer who holds an activity licence for the provision of motor third party liability insurance does not enter into a contract as an insurer within ten days after the entry into force of this Act, the activity licence for the provision of motor third party liability insurance issued to the insurer shall be deemed to have been revoked as of the entry into force of this Act.
(2) The Estonian Traffic Insurance Foundation shall bring its assets into conformity with the provisions of subsection 63 (2) of this Act by 1 March 2004.
(3) Within six months after the entry into force of this Act, insurers providing motor third party liability insurance shall pay 8 per cent of the insurance premiums received on motor third party liability insurance to Estonian Traffic Insurance Foundation for the purposes of performing the obligations of the Foundation. As of six months after the entry into force of this Act, the amount payable shall be determined by the council of the Estonian Traffic Insurance Foundation.
(4) Subsections 24 (1) and (2) of the Insurance Activities Act do not apply to members of the Riigikogu who are appointed members of the council of the Estonian Traffic Insurance Foundation.
[RT I 2002, 35, 215 - entry into force 25.04.2002]

§ 671.  Foundation of Guarantee Fund

(1) The members of the Estonian Traffic Insurance Foundation shall undertake to establish, within one year after 1 May 2004, a non-profit association to perform the obligations of the Guarantee Fund prescribed by this Act.
(2) The Estonian Traffic Insurance Foundation shall exercise the rights and perform the obligations of the Guarantee Fund until such time as the assets, rights and obligations of the Estonian Traffic Insurance Foundation are transferred to the Guarantee Fund.
(3) The Estonian Traffic Insurance Foundation shall transfer all assets, rights and obligations, including the reinsurance portfolio, to the Guarantee Fund. The funds needed for dissolution are not subject to transfer.
(4) The insurance portfolio of the Estonian Traffic Insurance Foundation shall be transferred to the Guarantee Fund pursuant to the procedure provided in the Insurance Activities Act.
(5) The Guarantee Fund is deemed to be the legal successor of the Estonian Traffic Insurance Foundation.
(6) In order to perform the obligation specified in subsection 61 (7) of this Act, the minimum of the own funds of the Guarantee Fund by 1 January 2009 shall equal to at least ten per cent of the total size of the gross appropriations for motor third party liability insurance to the members of the Guarantee Fund.
[RT I 2007, 55, 368 - entry into force 02.11.2007]

§ 672.  Dissolution of Estonian Traffic Insurance Foundation

(1) The Estonian Traffic Insurance Foundation shall be dissolved pursuant to the procedure provided for by this Act and the Insurance Activities Act.
(2) The Estonian Traffic Insurance Foundation shall be liquidated upon dissolution. The provisions of the General Principles of the Civil Code Act (RT I 2002, 35, 216; 2003, 13, 64; 78, 523) shall apply to liquidation, taking into account the specifications of the Insurance Activities Act.
(3) As of the entry of the Guarantee Fund in the register, the members of the council acquire the rights and obligations of liquidators of the Estonian Traffic Insurance Foundation. The Financial Supervision Authority exercises supervision over the liquidators.
(4) The liquidators shall submit the final report on liquidation to the Financial Supervision Authority.
(5) The Estonian Traffic Insurance Foundation is deemed to be dissolved as of deletion thereof from the state register of state and local government agencies.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 68.  Application of Act to motor third party liability insurance contracts

(1) Contracts entered into before the entry into force of this Act expire on the date specified in the policy issued.
(2) In the case of contracts entered into before the entry into force of this Act, the insurance premiums which apply are those previously agreed upon by the parties.
(3) Insurers may apply the procedure for calculation of insurance premiums established before the entry into force of this Act until 1 January 2002. After the expiry of the aforementioned term, insurance rates shall be established on the basis of risk premiums.
(4) Until 1 January 2004, insurance rates for motor third party liability insurance shall be co-ordinated with the Financial Supervision Authority before the application of the rates.
(5) Traffic damage sustained before the entry into force of this Act shall be compensated for pursuant to the Motor Third Party Liability Insurance Act in force at the time the insurance case occurred.
(6) Sections 16 and 52 of this Act become invalid upon the accession of the Republic of Estonia to the European Union.
[RT I 2004, 14, 90 - entry into force 25.03.2004]

§ 681.  Implementation of sums insured

The transfer to the sums insured provided in subsections 51(1) and (2) of this Act is carried out as follows:
1) until 10 December 2009, the sum insured shall be 102 205 euros in the case of property damage and 351 510 euros in the case of personal damage per one injured party;
[RT I 2010, 22, 108 - entry into force 01.01.2011]
2) beginning from 11 December 2009 until 10 June 2012, the sum insured shall be 500 000 euros in the case of property damage and 2 500 000 euros in the case of personal damage per one insured event;
3) the sums insured provided for in subsections 51 (1) and (2) of this Act shall be implemented as of 11 June 2012.
[RT I 2007, 55, 368 - entry into force 02.11.2007]

§ 682.  [Repealed – RT I 2010, 22, 108 – entry into force 01.01.2011]

§ 69. – § 73. [Omitted from this text]

§ 74.  Entry into force of Act

This Act enters into force on 1 June 2001.

1Council Directive 72/166/EEC on the approximation of the laws of Member States relating to insurance against civil liability in respect of the use of motor vehicles, and to the enforcement of the obligation to insure against such liability (OJ L 103, 02.05.1972, pp 1–4); Second Council Directive 84/5/EEC on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles (OJ L 8, 11.01.1984, pp 17–20); Third Council Directive 90/232/EEC on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles (OJ L 129, 19.05.1990, pp 33–35); Directive 2000/26/EC of the European Parliament and of the Council on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles and amending Council Directives 73/239/EEC and 88/357/EEC (Fourth motor insurance Directive) (OJ L 181, 20.07.2000, pp 65–74); Directive 2005/14/EC of the European Parliament and of the Council of amending Council Directives 72/166/EEC, 84/5/EEC, 88/357/EEC and 90/232/EEC and Directive 2000/26/EC of the European Parliament and of the Council relating to insurance against civil liability in respect of the use of motor vehicles (OJ L 149, 11.06.2005, pp 14–21). [RT I 2007, 55, 368 – entry into force 02.11.2007]

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