Car owners to purchase liability insurance on compulsory basis

Natural and legal entities owning motor vehicles will be obliged to purchase civil liability auto insurances, to provide protection against damages produced in accidents. The Parliament approved the bill on compulsory civil responsibility insurance in first reading on Friday, December 1. According to the bill, insurance coverage will be counted and paid within the limits of the insured person’s liability, totalling MDL 500,000 for damaging or destroying goods, regardless of the number of persons incurring damages in an accident, and MDL 350,000 for each person supporting damage in case of injuries or death, but not exceeding MDL 700,000 for several persons, regardless of their number. The amount of the coverage will be estimated by agreement between the insured party, the person supporting damage and the insurer, and in case that an agreement is not reached – via a court decision. The insurer has the right to bring in a recourse action against the person responsible for the damage in cases when the accident was produced on purpose, driving car intoxicated, when the responsible persons left the place of the accident etc. According to the same draft law, the fund of the third parties is to be created, in order to collect payments for damages brought to persons who became victims of accidents committed by uninsured unidentified or illicitly procured cars. Insurance premiums will be established and updated at least once a year, in conformity with a methodology approved by the Parliament. The bill is to be examined in second reading and will enter in force after 3 months since its publication in the “Official Monitor” newspaper.