More about MTPL

MTPL is compulsory third-party liability insurance for owners of motor vehicles. It is required for all vehicles that are issued a registration number plate and are used in road traffic. The purpose of MTPL is to protect the interests of third parties injured in road accidents.

MTPL insurance is governed by theCompulsory Civil Liability Insurance of Owners of Motor Vehicles Law (MTPL Law).

Standard contract is a contract signed in person or remotely for vehicles registered with the Road Traffic Safety Directorate (CSDD) or State Technical Supervision Agency (VTUA) (contract duration: 1, 3, 6, 9, or 12 months). It also applies to vehicles registered in a European Economic Area (EEA) country and imported into Latvia for registration with the CSDD. The duration of such a contract is 30 days, and signing it requires the appropriate purchase documents.

The standard contract applies in the EEA countries, as well as in Switzerland, Serbia, Andorra, Bosnia and Herzegovina, the United Kingdom of Great Britain and Northern Ireland, and Montenegro.

The Green Card is a contract, signed in person, for vehicles registered with the CSDD or VTUA. This contract lets you travel to non-EEA countries and its duration can be from 15 days to 12 months. The contract is only valid in the countries shown in the policy, but is not valid in Russia and Belarus.

Border insurance contract is a contract, signed in person, for vehicles not registered in EEA countries and the Swiss Confederation (cars of non-residents). The duration of the contract can be from 1 to 12 months, it is valid in the countries specified in the policy, and it is concluded based on the original registration documents.

The insurance premium charged by the insurer is reduced by 40% for vehicle owners who are:

• persons with group I and II disabilities;
• persons with a group III disability and restricted mobility, as certified by an appropriate expert statement bythe Commission of Health and Work Capacity Expert Review Physicians;
• parents, guardians, or foster family members caring for an underage child with a disability.

The discount applies for insuring only one car.

Farming discounts only apply to vehicles registered with the State Technical Supervision Agency (tractors and tractor-trailers). The company must be the owner of the vehicle.

A 30% discount is granted to all farms, fisheries, and agricultural service cooperatives.

A reduction in the insurance premium is granted to agricultural producers, regardless of whether they are legal entities or natural individuals. To receive the discount, one must submit a statement by the local government of the municipality of the insurer stating the area of land used for agricultural production during the calendar year in question. Information about how to apply for it can be received at your local government.

To terminate an MTPL policy following the legal procedure, you need an application signed by the client and a document that supports the termination of the contract.

The most common reasons for terminating an MTPL contract are:

• the car has been sold or its ownership status has changed otherwise (a car is not considered sold if it has only been deregistered, or if an invoice and an acceptance certificate have been issued for it). Reregistration can be performed with the CSDD or the VTUA register;
• the car is no longer in the possession of the owner, holder, or user through no fault of their own but due to the illegal actions of another party, whereby this has been reported to the corresponding law enforcement authorities;
• the car is not used in road traffic and its registration number plates have been handed over to the CSDD (registration temporarily suspended);
• the car is to be issued taxi registration number plates or a taxi services licence is to be issued (with white registration number plates);
• the car has been handed over for sale (an official certificate has been issued with the number registered with the CSDD, VTUA);
• the car is no longer used for taxi services;
• the car registration number plate has been changed to or from a transit number plate;
• the car is registered abroad, written off, scrapped, or deregistered.

For a full list of reasons for termination, see Section 10 of the MTPL Law.