GOVERNMENT OF THE REPUBLIC OF LITHUANIA

(4)of Article 3 of the Law of the Republic of Lithuania on the Implementation of the Law on Compulsory Insurance against Civil Liability in Respect of the Owners and Users of Motor Vehicles (Official Gazette 2001, No. 56-1978) and the Law of the Republic of Lithuania on Compulsory Insurance against Civil Liability in Respect of the Owners and Users of Motor Vehicles (Official Gazette, 2001, No. 56 -1977), and with the aim of ensuring mandatory technological requirements for printing and security of the forms of certificates/policies of compulsory insurance against civil liability in respect of the owners and users of motor vehicles, the Government of the Republic of Lithuania h a s r e s o l v e d:

1. To approve the appended: 1.
2. Rules of Compulsory Insurance against Civil Liability in Respect of the Owners and Users of Motor Vehicles; 1.
3. model forms of certificates/policies of ordinary, frontier and group contracts of compulsory insurance against civil liability in respect of the owners and users of motor vehicles; 1.
4. arrangements for printing of the forms of certificates/policies of compulsory insurance against civil liability in respect of the owners and users of motor vehicles.
5. To order the State Documents Technological Security Service under the Ministry of Finance to develop designs for the forms of the certificates/policies of ordinary, frontier and group contracts of compulsory insurance against civil liability in respect of the owners and users of motor vehicles. Prime Minister Algirdas Brazauskas Minister of Finance Dalia Grybauskaitė APPROVED by Resolution No. 1100, 13 September 2002, of the Government of the Republic of Lithuania RULES OF COMPULSORY INSURANCE AGAINST CIVIL LIABILITY IN RESPECT OF THE OWNERS AND USERS OF MOTOR VEHICLES I. General Provisions
6. These Rules shall establish the terms and conditions of the contract of compulsory insurance against civil liability in respect of the owners and users of motor vehicles (hereinafter "he insurance contract"). .
7. Upon conclusion of the insurance contract, the terms and conditions specified in the Rules shall become a constituent part of the contract.
8. For the purpose of these Rules the definitions given in the Law of the Republic of Lithuania on Compulsory Insurance against Civil Liability in respect of the Owners and Users of Motor Vehicles (Official Gazette, 2001, No. 56-1977) shall be used. II. Insurance and Non-Insurance Events
9. An insurance event shall mean civil liability specified in the certificate/policy of compulsory insurance against civil liability in respect of the owners and or users (hereinafter "the insurance certificate") arising due to personal injury and/or property caused to third parties during an accident or damage to a person and/or property as a consequence of the accident (hereinafter – damage caused during the accident), and making a claim, written or oral, for compensation of the damage caused during the accident to the insured provided the claim meets the following conditions: 4.
10. the claim for compensation of the damage during the accident is made in respect of e damage to third parties caused during the accident; 4.
11. damage in respect of which a claim for compensation has been made, was caused to third parties during an accident in the territory of the Republic of Lithuania during the period of validity of an insurance contract or resulting as a consequence of such an accident; 4.
12. damage in respect of which a claim for compensation has been made was caused to third parties by the insured when driving a motor vehicle specified in the insurance contract; 4.
13. the claim for compensation to the insured for damage was made within one year from the date when the damage occurred or within one year from the date on which the third party learnt or had to learn about the damage caused;
14. A non-insurance event shall be civil liability of the insured arising due to damage caused to a third party during an accident and a claim for compensation for the damage caused during the accident made to the insured where: 5.
15. the motor vehicle did not participate in road traffic: it was in the garage, repair shop, or any other place not intended for road traffic, or was used for works in places other than roads; 5.
16. damage arose at the time where the motor vehicle participated in any type of sports competition, sports race or sports training; 5.
17. damage arose due to military action, unrest inside the country or due to declaration of the state of emergency, also due to terrorist attacks or the impact of nuclear energy; 5.
18. damage in respect of the damage to or loss of the motor vehicle or the objects inside it arose not during the accident or not as a consequence of the accident; 5.
19. damage was caused to the insurer of the motor vehicle which was driven by the driver responsible for the damage caused during the accident; 5.
20. damage was caused to the property which was inside the motor vehicle of the insured which was driven by the driver responsible for the damage caused during the accident and to the property belonging to the members of the family of the insured responsible for the damage caused during the accident; 5.
21. the insured caused damage deliberately.
22. Where the insurer has no obligation to pay compensation to third parties, compensation for the damage shall be paid, in the cases specified in Article 20 of the Law of the Republic of Lithuania on Compulsory Insurance Against Civil Liability in respect of the Owners and Users of Motor Vehicles, by the Bureau of Insurance against Civil Liability in Respect of the Owners and Users of Motor Vehicles of the Republic of Lithuania. In this case damage shall be determined and compensation shall be paid according to the provisions of Sections VIII-X of these Rules. III, Calculation of Premiums
23. A premium shall be calculated by the insurer in accordance with these Rules and having regard to the standard premiums and premium rates specified in Article 14 of the Law of the Republic of Lithuania on Compulsory Insurance Against Civil Liability in respect of the Owners and Users of Motor Vehicles which are determined, taking into account the type of the vehicle and its technical parameters (the working volume of the engine‘s cylinders, the gross weight, the carrying capacity or the number of passenger seats) also the owners of motor vehicles (natural and legal persons), the place of registration (motor vehicles registered in the Republic of Lithuania or abroad), the category of its intended use (used for commercial or non-commercial transportation) and the duration of the insurance contract. A motor vehicle shall be assigned to the category of vehicles intended for commercial transportation where its owner is a legal person or a natural person using the motor vehicle for the provision of transportation services or who has transferred the motor vehicle for use by a legal person. Motor vehicles which may not be assigned to the category of vehicles intended for commercial transportation must be included in the category of motor vehicles intended for non-commercial transportation. The premium of a frontier insurance contract shall be calculated by multiplying the standard premium by an appropriate rate (Annex 1).
24. Premiums shall also be calculated by taking account of the following: 8.
25. the risk group of the insured – in accordance with the procedure set out in items 12-16 of these Rules, where an ordinary or group insurance contract is concluded; 8.
26. whether the insured belongs to the category of persons specified in Article 15

(2)of the Law of the Republic of Lithuania on Compulsory Insurance Against Civil Liability in Respect of the Owners and Users of Motor Vehicles - in accordance with the procedure set out in item 10 of these Rules where an ordinary or group insurance contract is concluded; 8.3. whether the insured belongs to the category of persons specified in Article 15

(3)of the Law of the Republic of Lithuania on Compulsory Insurance Against Civil Liability in Respect of the Owners and Users of Motor Vehicles - in accordance with the procedure set out in item 11 of these Rules where an ordinary, group or frontier contract of insurance is concluded. Amended: No. 391, 22 March 2002, Official Gazette 2002, No. 31 - 1155 (27 March, 2002)

1. When calculating the premium under the provisions of item 8.1 of these Rules, the premium calculated according to the provisions of item 7 shall be multiplied by an appropriate discount/surcharge rate of the premium (Annexes 2-4). When applying premium discount according to the provisions of item 8 of these Rules, the premium paid by the insured may not be less than by 50 percent of the premium calculated under the provisions of item
3. Where the insured under an ordinary or a group insurance contract is an old-age pensioner or a disabled person, specified in Article 15

(2)of the Law of the Republic of Lithuania on Compulsory Insurance Against Civil Liability in Respect of the Owners and Users of Motor Vehicles, the discount of the premium calculated under items 7 and 8.1 of these Rules shall be 40 percent if only the insured will be covered by such an insurance contract. Where the insured intends to transfer the motor vehicle belonging to him and specified in the insurance contract for use to another person who is not specified in Article 15

(2)of the Law of the Republic of Lithuania on Compulsory Insurance Against Civil Liability in Respect of the Owners and Users of Motor Vehicles , the insured must notify the insurer about this fact as a risk factor following the procedure specified in item 43 of these Rules, and the insurer shall have the right to revise the premium.

1. The premium for an insurer who possesses and produces a valid green card, the discount of the premium calculated under items 7, 8.1 and 8.2 of these Rules shall be 50 percent where the motor vehicle to be indicated in the policy is specified in the green card and the insurance contract is concluded for a period not longer than the period indicated in the green card and the remaining period of the insurance contract. Amended: No. 391, 22 March 2002, Official Gazette, 2002, No.31 - 1115 (27 March 2002)
2. If, prior to entering into a new insurance contract, insurance was valid without interruption for 12 months, and where the insured did not cause a road accident when driving the motor vehicle indicated in the policy, nor, during the said period, was the insured convicted for driving under the influence of alcohol, narcotic or psychotropic substances (hereinafter –“good driving record"), when concluding a new ordinary or group insurance contract, there shall be a discount of the premium calculated following the procedure specified in item 7 of these Rules. There shall be premium discounts, taking account of the rates specified in Annex 2 which depend on to the number of years during which, under ordinary and group contracts of insurance, the insured had a good driving record.
3. Where, during the last 12 months before conclusion of a new insurance contract, the insured: 13.
4. caused one or several accidents driving the motor vehicle indicated in the policy and was found guilty of causing the accident or accidents, when concluding the new insurance contract, there shall be a surcharge of the premium calculated following the procedure set out in item 7 of these Rules taking account of the rates specified in Annex 3, depending on the number of accidents in which the motor vehicle indicated in the insurance contract was involved; 13.
5. was convicted for driving the motor vehicle under the influence of alcohol, narcotic or psychotropic substances or caused an accident being under the influence of alcohol, narcotic or psychotropic substances when driving the motor vehicle indicated in the policy, when concluding a new insurance contract the premium calculated following the procedure set out in item 7 shall be increased taking account of the rates specified in Annex
7. Where, when concluding a new insurance contract, instead of a motor vehicle which was transferred and which was indicated in the previous insurance contract, another, newly acquired motor vehicle of the insured, is indicated, the premium shall be calculated taking account of the risk group (items 12-13 of these Rules) to which the insured was assigned when driving the transferred motor vehicle.
8. If there are no grounds to apply the provisions of either item 12 or item 13 of these Rules, the risk group of the insured shall not be changed/shall remain the same. Provisions of item 12 shall apply where there are no grounds for the application of provisions of item
9. When applying the provisions of items 12 and 13, account shall be taken only of the accidents due to which the insured incurred civil liability.
10. The provisions of this section shall apply to every motor vehicle included in the group insurance contract.
11. The risk group of the insured must be indicated in each insurance contract. When concluding an insurance contract for the first time and where grounds for surcharge of the premium have disappeared, the insured shall be assigned to the zero risk group which does not provide for either a discount or surcharge of the premium. The zero risk group shall also be assigned where there is no information about the risk group of the insured (e.g., previous valid insurance certificates policies have not been submitted in proof of good driving record of the insurer, where the Bureau of Insurance against Civil Liability in Respect of the Owners and Users of Motor Vehicles of the Republic of Lithuania has no information in its data base about the driving record, compensations benefits paid or payable in respect of the accidents caused by the insured). IV. Conclusion of the Insurance contract
12. An insurance contract shall be concluded in writing. The conclusion of an insurance contract shall be attested by an insurance certificate issued by the insurer.
13. An insurance contract must be concluded by the owner of the motor vehicle. In cases provided by law, an insurance contract may be concluded, on behalf of the owner of the motor vehicle, by the lawful user of the motor vehicle or another person authorised by the owner, according to the procedure laid down by law.
14. A proposal to the insurer to conclude an insurance contract shall be made by the insured orally or in writing. If at the moment of conclusion of an insurance contract the insured files a written application, after the conclusion of the insurance contract, the application becomes a constituent part of the insurance contract.
15. Before the conclusion of an insurance contract, the insured must supply to the insurer the correct information he requests and provide the documents necessary for the conclusion of the insurance contract. The insurer shall have the right to verify, at his own initiative, the accuracy of the supplied information. At the request of the insurer, the insured must provide the motor vehicle specified in the insurance contract for inspection.
16. The insurer shall have no right to refuse to conclude an insurance contract, except in he cases where the insured fails to fulfil the duties referred to in item 21 of these Rules. The refusal of the insurer may be appealed against in court. The insurer must provide conditions for making these Rules available to the public.
17. Where the insured fails to fulfil his duties referred to in item 21 of these Rules, and the insurer, nevertheless, concludes the insurance contract, the insurer, exercising the rights specified in Section XII of these Rules, may not invoke the fact that the duty referred to in item 21 has not been fulfilled.
18. Ordinary contracts of insurance shall be concluded with the owners and users of motor vehicles registered in the Republic of Lithuania and participating in traffic of this country, or with other persons duly authorised by the owner.
19. Where an ordinary insurance contract is concluded before the state registration of motor vehicles, the insured must supply, at the insurer’s request, the following documents necessary for the conclusion of the insurance contract: 25.
20. technical information about the motor vehicle, which is to be indicated in the policy, specified in item 7; 25.
21. a document attesting the identity of the person who is applying with a request to enter into an insurance contract ; 25.
22. where an the insurance contract is being concluded not by the owner of the motor vehicle, a power of attorney or any other document attesting the person’s right to enter into an insurance contract ; 25.
23. where an insurance contract is concluded having regard to provisions of Article 15

(3)of the Law of the Republic of Lithuania on Compulsory Insurance Against Civil Liability in Respect of the Owners and Users of Motor Vehicles, a green card which meets the requirements specified in item 11 of these Rules; 25.

1. the last valid insurance certificate or its copy where the insurer’s risk group is indicated; 25.
2. where the insurer is an old-age pensioner, or a disabled person of the 1st or 2nd group, the documents attesting this status; where the insurer is a disabled person of the 3rd group, having an impaired motor function, the driver’s licence with a special mark indicating this, and a certificate issued by the State Medical Social Expert Examination Commission or its copy; 25.
3. a document certifying acquisition of a motor vehicle which is to be indicated in the policy. Amendments of the item: Np.391, 22 March 2002, Official Gazette, No.31-1155(27 March 2002)
4. Where an ordinary insurance contract is concluded before the state registration of motor vehicles, the insurer, upon receiving the application of the insured, the documents necessary for the conclusion of the insurance contract and after determining the premium, shall issue an insurance certificate without indicating in it the licence number of the motor vehicle, except where the licence number is known. The insurance certificate shall be submitted to the agency of registration of motor vehicles. The agency of registration of motor vehicles shall enter into the insurance certificate submitted by the insured the licence number of the motor vehicle which must be communicated to the insurer within 3 days.
5. Where an ordinary insurance contract is concluded following the state registration of motor vehicles, the insurer, at the request of the insured, must submit an application, the certificate of registration of the motor vehicle and other documents referred to in items 25.2-25.6 of these Rules. After the receipt of the application and other documents necessary for the conclusion of an insurance contract , the insurer shall calculate the premium.
6. Frontier contracts of insurance are concluded with the owners of motor vehicle participating in national or, in cases established by law, - with the lawful users whose motor vehicles are registered abroad or re temporarily registered in the Republic of Lithuania or have provisional transit license pates and provisional plates issued to undertakings who are engaged in retail motor vehicle sale.
7. When concluding a frontier insurance contract, the insured must submit, at the insurer's request, a certificate of registration of the motor vehicle or documents attesting the right of ownership of the motor vehicle and documents about the technical specifications of the motor vehicle, referred to in item 7 of these Rules, as well as the documents referred in items 25.2 and 25.4 of these Rules. The insurer, upon receiving the application and other documents necessary for conclusion of an insurance contract , shall determine the premium. Amendments of the item: No. 391, 22 March 2002, Official Gazette, 2002, No. 31-1155 (27 March 2002)
8. A group insurance contract shall be concluded, with the farmers of registered farms in accordance with the procedure of the Law of the Republic of Lithuania on the Farmer's Farm (Official Gazette, 1999, No. 43-1358) and the agricultural entities specified in the Law of the Republic of Lithuania on State Regulation of Economic Relations in Agriculture who own several motor vehicles. A group insurance contract shall be concluded by issuing one certificate of a group insurance contract for not more than five motor vehicle only one of which may be a motor car.
9. When concluding a group insurance contract, the insured must submit, at the insurer's request the following documents necessary for the conclusion of the insurance contract: a certificate of registration of the motor vehicle or documents attesting the right of ownership of the motor vehicle and documents about the technical specifications of the motor vehicle, referred to in item 7 of these Rules; 31.
10. a certificate of registration of the farmer's farm or documents attesting that the insured is agricultural entity specified in the Law of the Republic of Lithuania on State Regulation of Economic Relations in Agriculture; 31.
11. documents attesting that the annual income of the agricultural entity from the sale of marketable agricultural produce and production services to agriculture constitute more than 50 percent of all the income received; 31.
12. a certificate of registration of the motor vehicle or documents attesting the right of ownership of the motor vehicle and documents about the technical specifications of the motor vehicle, referred to in item 7 of these Rules; 31.
13. documents referred to in items 25.2 - 25.6 of these Rules. Amendments of the item: No. 391, 22 March 2002, Official Gazette, 2002, No. 31-1155 (27 March 2002)
14. Upon receiving the application of the insurer and other documents necessary for the conclusion of a group insurance contract, the insurer shall calculate, pursuant to Section III of the Rules, the premium for each motor vehicle to be included in the certificate of insurance. The premium payable shall be determined by selecting the highest premium of all the calculated premiums.
15. A certificate of insurance shall be issued to the insurer after the payment of the premium but not later than within three days after the date of the payment.
16. The insurer must calculate the premium not later than within three days after the date of receipt of the documents necessary for the conclusion of the of the insurance contract.
17. The premium shall be paid to the insurer in lump sum and for the whole period of coverage, in cash or by using banking or postal services.
18. The insured must notify without delay the users of motor vehicles about the insurance contract that has been concluded. V. Duration of the Insurance Contract
19. The commencement and the expiration of the insurance contract shall be indicated in the certificate of insurance as calendar dates.
20. The insurance contract shall come into force on the following day after the date of the conclusion of the contract unless the contract sets a different date of its coming into force, but not before the premium is paid. Where parties to the contract agree that the contract of agreement come into force from the moment of its conclusion, the hour of conclusion of the insurance contract must be indicated in the certificate of insurance.
21. The insurance contract shall expire at 24 h of the last day indicated in the certificate of insurance.
22. An ordinary insurance contract and a group insurance contract may be concluded for the following periods: 1 month, 3 months, 6 months, 9 months, and 12 months.
23. A frontier insurance contract may be concluded for the following periods: 15 days, 1 month, 2 months, 3 months, 4 months, 5 months, 6 months, 7 months, 8 months, 9 months, 10 months, 11 months, and 12 months. VI. Increase and Reduction of Insurance Risk
24. Where insurance risk increases or may increase after the insurance contract was concluded, the insured must inform the insurer about increased insurance risk following the procedure laid down in item 43 of these Rules. Risk shall increase where any of the circumstances affecting the calculation of the insurance premium and its surcharge changes (items 7 and 8.2 of these Rules) which had to be reported by the insured before concluding the insurance contract.
25. Where insurance risk increases owing to the actions of the insured, his report must be submitted not later than the risk increases; in all other cases - immediately when the insured learned or was supposed to learn about these changes but not later than within 3 days after the moment when the insured learnt or was supposed to learn about an increased insurance risk.
26. When there is a higher insurance risk the insured must pay a premium surcharge which equals the difference between the premium calculated after the increase of the insurance risk in accordance with the provisions of Section III of these Rules and the insurance premium calculated when concluding the insurance contract.
27. The insured must inform the users of the motor vehicle about the risk increase cases pointed out by the insurer.
28. Where it is discovered during the duration of the insurance contract that there has been reduction of insurance risk, the insured shall have the right to claim a discount insurance premium, and the insurer must make a discount. Risk is reduced where any of the circumstances having an impact on the calculation of the premium and its discounts ( items 7 and 8.2 of these Rules) which had to be pointed out by the insurer before the conclusion of an insurance contract . VII. Duties of the Insured after a Traffic Accident
29. When a traffic accident happens the insured must: 47.
30. report to the police without delay; 47.
31. take all the necessary measures provided for in the Traffic Rules that medical assistance be provided to the injured party; 47.
32. produce to the participants of the accident and the police an insurance certificate; 47.
33. notify the insured, within 3 work days, about the accident in which he was involved, with the exception of cases where the insured could not inform the insurer, from whom he purchased a policy against civil liability, in writing about the accident, for reasons of his health condition or exceptional circumstances (force majeure); 47.
34. take all reasonable measures within his power to mitigate the damage and follow the instructions of the insurer where such instructions were given; 47.
35. complete an accident report form supplied by the insurer and return it forthwith to the insurer; 47.
36. present to the insurer all the documents available and the information about the circumstances and consequences of the accident necessary for determining the amount of compensation. The insured person must also supply to the insurer, if such is his request, all the necessary documents about the circumstances and consequences of the accident for determining the amount of compensation which the insured person has the right to obtain in accordance with the procedure established by law; 47.
37. allow the insurer to investigate the cause and amount of the damage during the accident, provide to him the information about the accident and the persons involved; 47.
38. not to start salvage/repair (hereinafter “repair” ) or recovery of the motor vehicle until the accident report form has been completed and presented to the insurer; in those cases where the insurer requests that he or his representative are allowed to inspect the motor vehicle indicated in the insurance certificate, not to start repair or recovery of the motor vehicle within 3 days of receiving such a request; 47.
39. where the insured person, because of the damage caused during the accident, is served a written claim to compensate for the damage caused during the accident: notify the insurer about this in writing at the earliest opportunity but not later than within 3 work days, and where the latter requests, to provide to him the documents supplied together with the claim for compensation for damage caused during the accident; 47.
40. where a court action is brought against the insured person for compensation of the damage caused during the accident , he shall notify the insurer about this in writing at the earliest opportunity but not later than within 3 days.
41. Without a written consent of the insurer the insured person shall have no right to allow, either in part or in whole, or satisfy the claim for compensation of the damage.
42. Where a court action is brought against the insured person for compensation of damage, the insurer shall, not later than within 7 days of the notification by the insured person about the action against him, have the right to advise the insured person to authorise the persons appointed by the insurer represent his interests in court. VIII. Provisions on Determining the Amount of General Damage and Payment of Compensation
43. Compensations shall be as follows: 50.
44. for personal injury; 50.
45. for damage to property.
46. The amount of compensation for personal injury shall depend on the extent of damage caused as a result of a traffic accident to the health of third parties and/or damage resulting from loss of life or such damage arising as a consequence of a traffic accident.
47. The amount of compensation for damage to property shall depend on the extent of damage caused to the property of third parties or such damage arising as a consequence of the traffic accident.
48. The compensation may be paid only upon ascertaining the occurrence of an insurance event and the amount of damage. A third party or the insured , in accordance with the procedure specified in items 66, 84 and 85 of these Rules, shall be entitled to apply for compensation by filing an application for compensation of the damage caused as a result of the traffic accident directly to the insurer who issued an insurance policy covering civil liability of the insured person responsible for the damage caused as a result of the traffic accident.
49. Breach of the terms and conditions of the insurance contract may not affect in any way the amount of compensation payable to a third party. The insurer shall pay compensation to a third party where the third party performs all the obligations specified in items 65.3-65.7 of these Rules. The insurer may reduce compensation paid for income not received where he ascertains that a third party, after a decision about the form of payment of compensation (item 80 of these Rules) was made, did not take all possible and reasonable measures to repair the property damaged during the traffic accident and by doing so contributed to the increase of damage.
50. The amount of compensation shall be determined by the insurer who has issued an insurance policy covering civil liability of the insured responsible for the damage caused during a traffic accident having regard to the damage caused to a third party.
51. The amount of compensation for damage caused to a third party during the accident shall be determined with regard to the provisions of the Civil Code of the Republic of Lithuania and other legal acts, the effective court judgement or order evidencing an amicable settlement in a civil matter on a claim of a third party against the insured or the insurer for compensation of damage, the opinion of the State Medical Social Examination Commission or any other agencies and enterprises having the right to determine the extent of personal injury, the opinion of experts and/or property valuators, the calculation of the repair expenses by the enterprise where the damaged property is under repair, and the documents supplied by health care institutions, a third party and the insured.
52. The amount of compensation for the destruction of a motor vehicle shall be determined having regard to the market value of the destroyed motor vehicle before to the destruction and the residual value after the accident. A motor vehicle shall be regarded as destroyed where its repair is not economically profitable. Repair of a motor vehicle shall be economically unprofitable where the repair costs are 75 percent above the market value of the motor vehicle before the traffic accident.
53. The amount of compensation for damage to a motor vehicle, where its repair is economically profitable shall be determined according to the repair expenses. Where the motor vehicle has not been repaired, compensation shall be paid for the calculated necessary repair expenses of the motor vehicle. The necessary repair expenses shall comprise the value of repairs, the value of painting, the value of new vehicle spare parts replacing the old parts (by deducting their depreciation), the value of painting materials and additional expenses. The necessary repair expenses shall be calculated according to the average work tariffs and prices of motor vehicle parts in conformity with the level of technology and taking account of the time rates recommended by the car repair enterprises. Where it is determined that the damaged car parts may be repaired and need no replacements, and repair work must proceed in the above manner. A third party may chose to have another way of repair by replacing damaged components with new components. The insurer is not obliged to compensate all expenses of this type of repair, and the compensation shall be calculated in accordance with the necessary repair expenses.
54. In every insurance event the insurer must compensate damage caused during a traffic accident without exceeding the insurance amount irrespective of the compensations paid previously under the same insurance contract.
55. If the insurance amount is not sufficient to compensate all the third parties, the insurer shall pay the compensation in proportion to the amount of damage of each third party.
56. Where the event is an insurance event, and if a third party and the insurer disagree about the amount of the compensation, and where the exact amount of damage lasts longer than 3 months from filing a claim for compensation, the insurer must, at the request of a third party, pay the amount of the compensation which is uncontested by the parties.
57. At the request of a third party, the insurer must provide help to him to study the relevant legal acts regulating compensation for damage caused during a traffic accident and the procedure of calculation of the compensation.
58. On paying the compensation the insurer shall acquire the right of regress against the insured in cases specified in Section XII of these Rules.
59. Where the insurer refuses to pay the compensation he must, within 7 days, inform in writing the person who filed a claim for compensation and outline the motives of his refusal. If, within 3 months of the filing a claim for compensation, the occurrence of an insurance event, its circumstances and consequences are not ascertained and the exact amount of compensation was not was not paid, the insurer must, within this term, inform in writing the person who filed the claim for compensation and explain why this has not been done. IX. Filing a Claim for Compensation with the Insurer
60. A third party seeking to claim compensation must: 65.
61. report, within 3 days after he learns about the insurer who issued a policy covering civil liability of the insured responsible for damage caused during a traffic accident, the traffic accident to the insurer; 65.
62. complete the accident report form provided by the insurer and return it to the insurer without delay; 65.
63. submit to the insurer the following documents or their copies: 65.3.1 a claim for compensation; 65.3.
64. all documents and information in his possession about the circumstances and consequences of the traffic accident necessary for determining the amount of compensation and the documents which he has the right to obtain in accordance with the procedure laid down in laws and other legal acts; 65.3.3 documents giving evidence about the type of damage caused by the traffic accident and documents giving evidence about the amount of damage caused during the traffic accident; 65.
65. retain the damaged or destroyed motor vehicle or any other property in the state it was after the traffic accident until it is examined by an expert assigned by the insurer; 65.
66. provide a possibility for the insurer or his agent to examine the damaged or destroyed motor vehicle or any other property or allow them to examine the documents confirming the fact of damage caused during the traffic accident and its amount; 65.
67. allow the insurer to investigate the causes and amount of damage, provide to him information about the traffic accident and its participants; 65.
68. carry out medical examination under directions of the insurer who is examining the claim for compensation.
69. Where the insured who has compensated for the damage caused during the traffic accident applies to the insurer with a claim for compensation, he must submit to the insurer the following documents: 66.
70. documents referred to in item 65.3 of these Rules; 66.
71. a certificate of insurance or its copy; 66.
72. documents in evidence of the fact of compensation for damage and the amount of the compensation paid; 66.
73. the claim of a third party to compensate for damage together with the documents which the latter provided to the insured.
74. The insurer shall be entitled to request that the insured person or a third party provide other documents or information necessary for the investigation of the circumstances and consequences of the traffic accident and determination of the amount of damage and the amount of the compensation., The insurer must specify in writing what documents specifically have to be provided by the insured and a third party.
75. At the request of the insured the insurer must provide in writing detailed information about the course of administration of the insurance event and allow the insured and/or a person authorised by him to be present as an observer when determining the amount of damage. X, Payment of the Compensation
76. Upon receiving a written notification of the accident, the insurer shall ask a third party who is entitled to a compensation and the insured to complete the accident report form of the format established by the insurer in which the circumstances of the accident have to be specified. The insured and a third party must give answers as detailed as possible to the questions of the form and return it to the insurer.
77. The insurer must send, as soon as possible but not later than within 3 work days of the written notification of a third party, an expert to examine the damaged or destroyed property.
78. If the expert of the insurer fails to appear within the period specified in item 70 of these Rules, a third party shall have a right to hire a property valuator to determine the amount of damage to property. In this case the insurer must reimburse to a third party the costs of hiring the property valuator.
79. Upon receiving a notification of the accident, the insurer shall conduct its investigation by interviewing the witnesses, examining the scene of the accident and the damaged or destroyed property, taking photos, contacting the appropriate law enforcement, health care institutions as well the institutions where psycho-neurological, toxicological and narcological patients are registered. The insurer has a right to send a third party for medical examination and pay the expenses, or, in accordance with the opinion of the State Medical and Social Expert Examination Commission or of other agencies and enterprises which have a right to determine the extent of health impairment, determine the amount of compensation. The amount of compensation shall be determined by the insurer taking account of the consultations, recommendations and opinions of the medical personnel who provided treatment to a third party, the opinion and documents of the expert examiners and/or property valuators giving proof of the damage caused during the accident and its amount.
80. Parties to an insurance contract may, by a separate agreement, provide that the sum of damage caused to a third party shall be determined by experts appointed by the parties to the insurance contract. In this case it is necessary to set the procedure of appointment and remuneration of experts, the examination to be conducted and the form of presenting the conclusions.
81. A third party shall be entitled to apply, on his own initiative and at his own expense, to a property valuator who would determine the amount of damage to property.
82. The expenses sustained by the appointed expert or the property valuator msut be reimbursed by the insurer.
83. The insurer shall pay the compensation after the documents specified in items 65-67 of these Rules are submitted, the fact of the insurance event is ascertained and the amount of damage is determined but not later than within 14 days after the date on which all the information necessary for ascertaining the fact of the insurance event, its circumstances, consequences and for determining the amount of damage was received. Where compensation is paid in periodical instalments, the provision contained in the first sentence of this item shall apply to the first instalment. Lump sum compensations shall be paid together with the first periodic instalment. If the insurer fails to pay the compensation or its instalment within said term, he must inform in writing the claimant and the insured by providing an explanation of such failure.
84. After examining the damaged or destroyed motor vehicle, assessment of its repair or after the repair expenses have been calculated, the insurer, subject to consent of a third party, may transfer the compensation directly to the person who is doing the repair of the motor vehicle or pay it to a third party irrespective of whether the motor vehicle has been already repaired or not.
85. Where repair of the property damaged during the accident starts before the payment of the compensation, the method of repair and the enterprise where it is planned to repair the damaged property must be approved by the insurer in advance. When calculating the amount of compensation the insurer shall take account not of the actual expenses sustained by a third party but of the expenses necessary for repair.
86. Where the method of repair or the place of repair chosen by a third party is not acceptable to the insurer, he may suggest another enterprise where the technological level is suited to the technological requirements of repair of the specific property.
87. A decision on the form of payment of the compensation (items 77-79 of these Rules) shall be made by the insurer and a third party.
88. Compensation for property damage shall be paid as lump sum.
89. Compensation for personal injury shall be paid as lump sum or in instalments. Where compensation for damage is paid in instalments they must be indexed in accordance with the procedure provided by law. Compensation instalments for the previous month must be paid by the 20th day of the current month at the latest.
90. Social insurance benefits which are paid in cases of health impairment or loss of life and a funeral allowance shall be included in the amount of the damage to be compensated.
91. Where the insured himself has paid the indemnity, the compensation shall be paid to the insured who has provided the documents referred to in item 66 of these Rules provided had the insurer had given his consent to pay the compensation or the insured has provided proof that the insurer refused to give such consent without a good cause.
92. Where the insured has paid part of the indemnity, the compensation to him shall be paid only if the insurer had paid to a third party a compensation for part of damage that has not been compensated for and the insured had receive a written consent of the insurer to compensate damage, or where he has provided proof that the insurer refused to give such consent without a good cause.
93. The insurer must, in accordance with the procedure set forth in item 88 of these Rules, reimburse to the insured legal costs and the fee for legal assistance to the representative appointed by the insurer; if a representative of the insured acted on his behalf in court the insurer must reimburse a reasonable and justified amount of the legal assistance costs. These costs shall be reimbursed even where it becomes known at a later date that the claim for compensation of damage was not an insurance event.
94. In case of an insurance event the insurer must compensate to the insured, following the procedure under item 88 of these Rules, the necessary expenses sustained when taking all available and reasonable measures to mitigate damage, irrespective of the fact that such measures were not effective. The expenses sustained by the insured who followed the instructions of the insurer (item 47.5 of these Rules) shall be reimbursed even if it becomes known at a later date that a claim for compensation was not an insurance event.
95. The expenses of the insured provided for in items 86 and 87 of these Rules shall be reimbursed only after the payment of personal injury and property damage compensation. If it is discovered that the claim for compensation was not an insurance event, the expenses shall be reimbursed when the fact of non-occurrence of an insurance event is established.
96. Compensation for damage caused by an uncoupled trailer or a trailer which became uncoupled from a motor vehicle shall be paid under a separate contract of compulsory trailer insurance. XI. Multiple Insurance
97. The insurer shall not be entitled to cover the same motor vehicle under several ordinary, frontier and group insurance contracts. When it is established after an insurance event that the same motor vehicle has been indicated in several valid certificates of insurance, compensation shall be paid in proportion to the amount specified in the insurance contract, however the compensation payable may not be in excess of the aggregate amount of damage. XII. The Insurer’s Right of Regress and Cases of Paying Back of Compensation
98. Having paid compensation to the aggrieved third party , the insurer shall have a right of regress against the insured where the latter: 91.
99. was driving a motor vehicle under the influence of alcohol, narcotic drugs or psychotropic substances; 91.
100. the motor vehicle he was driving was in a technical condition which made it unfit for use; 92.
101. had no driving licence when he caused the traffic accident or had no driving licence for this particular type of the motor vehicle; 91.
102. failed with fault to fulfil the obligations laid down in these Rules or fulfilled them improperly.
103. If the insured does not notify to the insurer the accident in which he was involved within the time period specified in item 47.4 of these Rules, the insurer shall have a right of regress against the insured for up to 20 percent of the compensation paid.
104. The insured shall have a right of regress against the insured for up to 100 percent of the compensation paid where the insured does not report the accident to the police or leaves the scene of the accident, with the exception of cases provided by regulatory acts, where he fails to provide, at the request of the insurer, the motor vehicle indicated in the insurance contract for examination, or where he deliberately fails to fulfil the obligations specified in items 21 and 42 of these Rules.
105. When exercising his right of regress the insurer must take account of the degree of fault of the insured, the gravity of breach of the terms and conditions of the insurance contract, its causal relation with the insurance event, the amount of damage arising as a result of the breach which is determined having regard to the amount of compensation which the insurer would have paid if the insured fulfilled his obligation. XIII. Termination Revision of the Insurance Contract
106. An insurance contract shall be terminated following the procedure provided for in the Law of the Republic of Lithuania on Compulsory Insurance against Civil Liability in respect of the Owners and Users of Motor Vehicles.
107. After termination of the insurance contract the insured must submit to the insurer the certificate of insurance in which the insurer shall make a note about the termination of the insurance contract. The insurer shall have a right not to pay back the premium if the insured fails to produce the certificate of insurance for making a note in it about the termination of the insurance contract.
108. Arrangements between the parties to the insurance contract and its revisions provided for under these Rules must be in writing and must be signed by the parties to the insurance contract. XIV. Final Provisions
109. All notifications made by one party to the insurance contract to the other party, communications by persons who have made claims as well as communications to them must be in writing. A party to the insurance contract must, without delay but not later than within 7 days, inform the other party about changes in the address of the registered office or permanent place of residence. All communications and applications to the insurer must be in writing.
110. All disputes arising in respect of the insurance contract or relating to it, disputes over refusal to pay compensation, non-payment of the prescribed amount of compensation and non-payment of compensation within the time period prescribed by these Rules shall be settled in courts of the Republic of Lithuania.
111. The insurer shall also be liable for breaches of the insurance contract in cases where the obligations arising in the course of the performance of the insurance contract are violated by persons acting in the capacity of legal representatives of the insured. APPROVED by Resolution No. 1100, 13 September 2002, of the Government of the Republic of Lithuania PROCEDURE OF PRINTING FORMS OF CERTIFICATES /POLICIES OF COMPULSORY INSURANCE AGAINST CIVIL LIABILITY IN RESPECT OF THE OWNERS AND USERS OF MOTOR VEHICLES The printing of forms of certificates/policies of compulsory insurance against civil liability (hereinafter "insurance certificates") shall be organised individually by each insurance company authorised by the board of the State Insurance Supervisory Authority under the Ministry of Finance (hereinafter "Supervisory Authority") to engage in compulsory insurance against civil liability in respect of the owners and users of motor vehicles (hereinafter "insurance company"), according to the designs of insurance certificate forms developed by the Technological State Documents Security Service under the Ministry of Finance (hereinafter " Document Security Service').
112. Insurance companies having a series of insurance certificates granted by the Supervisory Authority shall notify to the Document Security Service the printing houses licensed to print securities and document forms where its forms of insurance certificates will be printed. The Document Security Service shall supply designs of insurance certificate forms in digital medium.
113. Insurance companies, when placing an order with printing houses to print insurance certificates, must also order printing of insurance certificate sample forms with its serial letters and zero numbering. Insurance companies, after their insurance certificate forms have been printed, must, within 5 days, supply to the Documents Security Service, free of charge, 400 insurance certificate sample forms bearing its serial letters and zero numbering of each category. The Documents Security Service shall, within 10 days from the date of their receipt, submit these insurance certificate forms and their description to the control institutions.
114. The Documents Security Service shall be present at the printing houses when photo films of the forms and print forms are being made, during printing of standard forms of insurance certificates and when defective printed forms are being destroyed.
115. The following technological security measures of the insurance certificate forms shall be used: 5.
116. all sets of insurance certificate forms shall be of A4 format, shall consist of 2-3 copies, where the paper of the first copy shall be secured; 5.
117. requirements for secured paper: 5.2.
118. shall not fluoresce under ultraviolet rays; 5.2.
119. grammage - at least 80 g/m2 , recurrent two-shade water mark; 5.2.
120. fluorescent beams shall appear and disappear in the paper mass when exposed to ultraviolate rays; 5.
121. press shall be identical for all the copies of a set of insurance certificate forms: 5.3.
122. offset linear (4 colours, one of them invisible and fluorescent under ultraviolet rays); 5.3.
123. protective tracery, guilloche; 5.3.
124. positive micro-text, letter height 0.2-0.35 mm; 5.3.
125. negative micro-text, letter height b0.3-0.35 mm; 5.
126. numbering (embossed) by a seven-digit serial number fluorescing under ultraviolet rays; 5.
127. the series shall be offset printed and shall consist of 3 letters. Amended: No. 391, 22 March 2002, Official Gazette 2002, No.31-1155 (27 March, 2002) . Annex I of the Rules of Compulsory Insurance against Civil Liability in respect of the Owners and Users of Motor Vehicles PREMIUM RATES OF COMPULSORY INSURANCE AGAINST CIVIL LIABILITY IN RESPECT OF THE OWNERS AND USERS OF MOTOR VEHICLES APPLIED WHEN CONCLUDING FRONTIER CONTRACTS OF INSURANCE AGAINST CIVIL LIABILITY IN RESPECT OF THE OWNERS AND USERS OF MOTOR VEHICLES code of the rate TYPE OF THE MOTOR VEHICLE PERIOD 15 days 1 m. 2 m. 3 m. 4 m. 5 m. 6 m. 7 m. 8 m. 9 m. 10 m. 11 m. 12 m. A cars and motor vehicles designed on their basis, minibuses having up to 8 passenger seats, trucks and motor vehicles designed on their basis with load capacity of up to 1 tonne 0.15 0.21 0.31 0.41 0.52 0.62 0.73 0.83 0.93 1.04 1.14 1.25 1.35 B motorcycles and motor vehicles designed on their basis 0.12 0.16 0.24 0.32 0.39 0.47 0.55 0.63 0.71 0.79 0.87 0.95 1.03 C1 TRUCKS and MOTOR vehicles designed on their basis, trailers 0.18 0.24 0.36 0.47 0.59 0.71 0.83 0.95 1.07 1.19 1.31 1.43 1.55 D MOTOr scooters and motor vehicles designed on their basis 0,12 0,16 0,24 0,32 0,39 0,47 0,55 0,63 0,71 0,79 0,87 0,95 1,03 E buses and motor vehicles designed on their basis as well as MINIBUSES with MORE THAN 8 PASSENGER SEATS 0.23 0.3 0.46 0.61 0.77 0.92 1.08 1.23 1.38 1.54 1.69 1.85 2 F1 CAr Trailers and Motor vehicles designed on their basis 0.11 0.15 0.23 0.31 0.38 0.46 0.54 0.61 0.69 0.77 0.85 0.92 1 F2 truck trailers , semi- TRailers and motor vehicles designed on their basis 0.13 0.18 0.27 0.36 0.44 0.53 0.62 0.71 0.8 0.89 0.98 1.07 1.16 F3 trailers of tractors and self-propelled mechanisms 0.13 0.18 0.27 0.36 0.44 0.53 0.62 0.71 0.8 0.89 0.98 1.07 1.16 C2 TRACTORS AND SELF-PROPELLED MECHANISMS 0.11 0.15 0.23 0.31 0.38 0.46 0.54 0.61 0.69 0.77 0.85 0.92 1 –––––––––––––––––––– ANNEX II OF THE of the Rules of Compulsory Insurance against Civil Liability in respect of the Owners and Users of Motor Vehicles PREMIUM discount RATES taking into account THE good driving record NUMBER OF YEARS PREMIUM REDUCTION RATE CODE OF THE INSURED'S RISK GROUP 1 FROM 0.9 iki 0.5 D1 2 FROM 0.85 iki 0.5 D2 3 FROM 0.8 iki 0.5 D3 4 FROM 0.75 iki 0.5 D4 5 FROM 0.7 iki 0.5 D5 6 FROM 0.65 iki 0.5 D6 7 FROM 0.6 iki 0.5 D7 8 FROM 0.55 iki 0.5 D8 9 AND MORE 0.5 D9 –––––––––––––––––––– ANNEX III OF THE of the Rules of Compulsory Insurance against Civil Liability in respect of the Owners and Users of Motor Vehicles PREMIUM surcharge RATES taking into account HE poor driving record NUMBER OF ACCIDENTS PREMIUM INCREASE RATE CODE OF THE INSURED'S RISK GROUP 1 1.15 N1 2 1.3 N2 3 1.5 N3 4 1.75 N4 5 AND MORE 2 N5 ––––––––––––––––––––– ANNEX IV OF THE of the Rules of Compulsory Insurance against Civil Liability in respect of the Owners and Users of Motor Vehicles PREMIUM surcharge RATES for driving THE CAR UNDER THE INFLUENCE OF ALCOHOL OR NARCOTIC OR PSYCHOTROPIC SUBSTANCES CAUSE PREMIUM INCREASE RATE CODE OF THE INSURE'S RISK GROUP THE INSURED WAS CONVICTED FOR DRIVING THE MOTOR VEHICkle UNDER THE INFLUENCE OF ALCOHOL, NARCOTIC DRUGS OR PSYCHOTROPIC SUBSTANCES 3 N6 THE INSURED CAUSED AN ACCIDENT UNDER THE INFLUENCE OF ALCOHOL OR NARCOTOIC OR PSYCHOTROPIC DRUGS 4 N7 –––––––––––––––– Aproved by DECISION No. 1100 of 13 September 2002 of the GOVERNMENT OF THE REPUBLIC OF LITHUANIA