REPUBLIC OF LITHUANIA LAW ON COMPULSORY INSURANCE AGAINST CIVIL LIABILITY IN RESPECT OF THE USE OF MOTOR VEHICLES 14 June 2001 No IX-378 Vilnius (Last amended on 17 November 2011 - No XI-1671) CHAPTER

Articles 17 and 18 of this Law, to the Bureau or a representative of the Bureau.

1. Where the compensation paid by the insurer or the Bureau is not sufficient to cover the damage incurred to the injured third party because the damage exceeds the sum insured, the injured third party shall be entitled to claim the remainder from the responsible person.
2. The claim for damages may not be presented to the Bureau if the injured third party has applied to court claiming damages suffered in a road accident from the responsible person or the responsible insurer, with the exception of the cases laid down in Article 20 of this Law. The injured third party may present a claim for damages only after withdrawal of the claim for damages presented to the responsible person or responsible insurer, provided that the court accepted such withdrawal and discontinued the case.
3. Where the motor vehicle which caused the road accident or the responsible person is unidentified but the damage has been caused in circumstances that prove civil liability of the user of the motor vehicle, the injured third party whose property is damaged in the Republic of Lithuania shall be entitled to present a claim for damages to the Bureau. In this case, the Bureau shall examine the claim, assess the size of the damage and determine the amount of compensation to be paid in accordance with the procedure established in this Law; however the compensation shall be paid only after the motor vehicle, which caused the road accident or the responsible person has been identified. Article
4. Claims Representative of the Insurance Undertaking
5. A representative of an insurance undertaking of another Member State of the European Union or a foreign state in the Republic of Lithuania shall be a trustee of such undertaking who is appointed to perform the functions of handling and settling of claims on behalf of this undertaking.
6. In the cases when a permanent resident of the Republic of Lithuania, who was injured during a road accident outside the territory of the Republic of Lithuania, wishes so, a claims representative of another Member State of the European Union in the Republic of Lithuania must also solve matters of handling and settling of claims where all of the following conditions are satisfied: 1) the injured third party has suffered damage in a Member State of the European Union other than the state of his permanent residence or in a foreign state the national insurers’ bureau of which has joined the Green Card system; 2) civil liability of the responsible person is covered by an insurer or its branch based in a Member State of the European Union other than the state of permanent residence of the injured third party; 3) the motor vehicle of the responsible person is normally based in a Member State of the European Union other than the state of permanent residence of the injured third party.
7. When a claims representative, appointed in the Republic of Lithuania, quantifies the damage caused in the territory of the Republic of Lithuania and solves a matter of compensation payment, the provisions of this paragraph concerning the procedure for quantifying damage and paying compensation shall be applicable. When a claims representative, appointed in the Republic of Lithuania, quantifies the damage caused not in the territory of the Republic of Lithuania and solves the matter of compensation payment, the legal acts, regulating compulsory insurance against civil liability in respect of the use of motor vehicles, of the state in which the road accident took place shall be taken into consideration.
8. An insurer who has the right to provide compulsory insurance against civil liability in respect of the use of motor vehicles in the Republic of Lithuania, must appoint in all other Member States of the European Union claims representatives who are responsible for payment of compensation to the injured third parties where all the following conditions are satisfied: 1) an injured third party has suffered damage in a member state of the European Union in which he is not permanently resident or in a foreign state whose national insurers’ bureau has joined the Green Card system, and the injured third party is permanently resident in a member state of the European Union; 2) an injured third party is not permanently resident in the Republic of Lithuania; 3) the motor vehicle of a responsible person, whose civil liability is covered by this insurer, is normally based in the territory of the member state of the European Union other than that in which the injured third party is permanently resident.
9. The claims representative shall be permanently resident or established in the Member State of the European Union where he is appointed. The choice of its claims representative shall be at the discretion of the insurer. The claims representative may work for one or more insurers. He must be capable of examining cases in the official language(s) of the Member State of the European Union where the injured third party is permanently resident.
10. The insurer shall delegate sufficient powers to its claims representative to discharge his functions (collect all necessary information, take decisions regarding the payment of compensation, pay compensation, etc.). Article
11. Assessment of Damage
12. The injured third party claiming compensation from the insurer or the Bureau shall notify in writing, whether in person or through a representative, the responsible insurer or,

Article 17

of this Law, the Bureau about the road accident within 3 working days of the accident, unless he is unable to do so for serious reasons. The injured third party shall submit, in person or through a representative, a claim for damages, a declaration or any other document concerning the circumstances of the road accident and signed by the persons involved in the road accident, in the event that the police was not called to the place of the road accident, as well as information and available documents about the responsible person, circumstances of the road accident and the documents that prove the fact of the damage caused in the road accident, and shall also give access to the documents evidencing the circumstances, fact and size of the damage.

1. Where the damage is caused to property, the injured third party must keep the damaged motor vehicle or other property in the condition as immediately after the accident until it is inspected by a person authorised by the responsible insurer or the Bureau and allow the person authorised by the insurer or the Bureau to inspect the damaged or destroyed property. The responsible insurer and the Bureau shall, without delay but not later than within 3 working days of receipt of a written notice from the injured third party about the road accident, send an authorised person to inspect the damaged or destroyed property, write a survey report and shall present it to the injured party for signature.
2. The size of damage to property shall be assessed by the responsible insurer or,

Article 17

of this Law, by the Bureau on the basis of reports and documents prepared by authorised persons and/or by property valuators, which prove the circumstances, fact and size of the damage. When determining the circumstances of the accident and liability of the responsible person, a declaration of a road accident or any other document concerning the circumstances of the road accident and signed by the persons involved in the road accident, or documents about the circumstances of the road accident issued by competent bodies shall be followed. Should the person authorised by the responsible insurer or the Bureau fail to arrive within the time-limit specified in paragraph 2 of this Article, the injured third party shall have the right to contract a property valuator to assess the size of damage to property. In this case, the responsible insurer or the Bureau must compensate the injured third party for reasonable expenses incurred by him when contracting the property valuator. Nevertheless the injured party has the right, at his own initiative and on its own account to apply to the experts to assess the size of the damage.

1. In case of personal injury, the size of damage shall include all of the damage sustained by a natural person. The damages shall comprise the loss of income that the injured person would have received had he not sustained bodily harm, and the expenses related with the rehabilitation of health (medical treatment costs, expenses incurred for additional nourishment, medicines, prosthetics, care of the injured person, acquisition of specialised transport means, retraining costs and other expenses necessary for the rehabilitation of health).
2. The damages incurred by loss of life shall include funeral expenses and other related expenses as well as expenses related to loss of a breadwinner. Persons entitled to compensation for damage caused by loss of a breadwinner shall be compensated for that portion of the deceased person’s income, which they received or were entitled to receive when the deceased person was alive. Persons who were maintained by a breadwinner or at the time of his death were entitled to such maintenance (minor children, spouses, parents incapable of work or other actual dependants incapable of work), also the children of the deceased born after his death shall have the right to compensation for damage.
3. Damage to person shall be assessed by the responsible insurer or,

Article 17

of this Law, by the Bureau on the basis of documents and information which prove the circumstances, fact and size of the damage as well as on the basis of medical examination reports. On the basis of the conclusions reached by institutions or establishments entitled to assess the damage to health, the responsible insurer or the Bureau shall have the right to send the injured third party for medical examination and shall be obliged to compensate for examination expenses. 7. The injured third party shall be entitled to present claims for non-pecuniary damages to the responsible insurer or,

Article 17of this Law, to the Bureau.

If the responsible insurer and the injured third party do not agree with the amount of compensation for non-pecuniary damage, the injured third party shall be entitled to apply to court. The persons specified in paragraph 5 of this Article shall also be entitled to compensation for non-pecuniary damage. Article

1. Principles of Paying Compensation
2. The responsible insurer or the Bureau shall pay compensation if the user of motor vehicle incurs civil liability for the damage caused to the injured third party. The compensation shall be paid taking into account the legal acts regulating compulsory insurance against civil liability in respect of the use of motor vehicles of the state in which the road accident took place.
3. The responsible insurer shall pay compensation to the injured third party if the user of motor vehicle incurs civil liability for the damage caused to the injured third party when using an insured motor vehicle, irrespective of whether the user acted in conformity with the terms and conditions of the insurance contract, except

paragraphs 1 and 2 of Article 21 of this Law, and irrespective of whether the policyholder provided the insurer with all the information necessary for the conclusion of an insurance contract prior to its conclusion. The responsible insurer shall also pay compensation for the damage caused by the insured motor vehicle when the identity of the person who drove it is unknown, but the damage was done under the circumstances, which form the grounds for liability of the owner or any other user of this motor vehicle under Article 6.270 of the Civil Code. 3. The Bureau shall pay compensation

Articles 17 and 18 of this Law.

1. In accordance with the procedure established in this Law, the insurer or the Bureau shall pay compensation if the claim for damages is presented within one year from the date when the damage was caused or within one year from the date on which the injured third party learned or had to learn of the damage but not later than within 4 years from the date of the road accident concerned.
2. Compensation for the damage caused by a towed motor vehicle (when under legal acts a driver of a towed motor vehicle is not necessary) shall be paid according to the insurance contract covering the towing motor vehicle provided that the towed motor vehicle was connected to the towing motor vehicle at the time of the road accident. If the towed motor vehicle (the driver of which is not necessary) got disconnected from the towing motor vehicle before the road accident, compensation for the damage caused by the motor vehicle which got disconnected shall be paid according the contract of insurance against civil liability in respect of the use of the motor vehicle which got disconnected where the user of the towed motor vehicle incurs civil liability in respect of the damage. Compensation for the damage caused by a towed motor vehicle (the driver of which is necessary) shall be paid either according to the contract of insurance of a towed motor vehicle or the contract of insurance of the towing motor vehicle, taking into consideration the user of which motor vehicle is held liable. Article
3. Compensation Payable by the Bureau 1 The Bureau shall pay compensation for the damage caused in a road accident to the injured third parties in the cases where: 1) a responsible person caused damage in the Republic of Lithuania with an uninsured (identified) motor vehicle, provided that the user of motor vehicle incurs civil liability in respect of the damage. The Bureau shall also pay under this subparagraph in the cases when the damage is caused in another member state of the European Union by an uninsured motor vehicle, which is normally based in the territory of the Republic of Lithuania; 2) damage caused during a road accident which took place in the territory of the Republic of Lithuania to person’s health and/or deprivation of life when the damage is caused under the circumstances which prove civil liability of the user of a motor vehicle, however, the motor vehicle which and/or responsible person who caused the road accident are not identified. Under this subparagraph the Bureau shall pay compensation to the injured third parties also for damage to property, if for the same road accident at least to one injured third party the Bureau pays compensation for the damage caused to the person, in the event of grievous health impairment which is established in compliance with the Rules for Establishing the Scope of Health Impairment; 3) the responsible person who, at the time when the damage is done, is covered by compulsory insurance against civil liability in respect of the use of motor vehicles (has the insurance contract which is in force), but the responsible insurer – a member of the Bureau is the subject of bankruptcy proceedings. According to this subparagraph the Bureau shall pay compensation if the insured motor vehicle caused damage in the territory of the Republic of Lithuania, another member state of the European Union o another foreign state whose national insurers’ bureau has signed the Regulations on Cooperation.
4. The Bureau shall pay compensation under subparagraphs 1 and 2 of paragraph 1 of this Article to injured third parties who incurred damage in a road accident which occurred in the Republic of Lithuania and who are permanently resident in the Republic of Lithuania or another Member State of the European Union. The Bureau shall also pay compensation to injured third parties who incurred damage in a road accident which occurred in the Republic of Lithuania and who are permanently resident in a foreign state if the national insurers’ bureau of the state in which the injured third party is permanently resident has signed the Regulations on Cooperation or an agreement with the Bureau on the recognition of reciprocal settlement of claims.
5. The Bureau shall pay compensation according to subparagraph 3 of paragraph 1 of this Article to injured third parties instead of the following members of the Bureau: 1) insurance undertakings or branches of insurance undertakings of foreign states in accordance with their insurance contracts governed by the law of the Republic of Lithuania; 2) insurance undertakings of another Member State of the European Union in accordance with their insurance contracts governed by the law of the Republic of Lithuania.
6. An injured third party shall also be entitled to appeal to the Bureau for claim handling and settlement regarding the damage caused during a road accident which occurred in the territory of the Republic of Lithuania, when the insurance undertaking of another state which insured civil liability of the responsible person (which issued the Green Card valid in the republic of Lithuania or any other certificate of compulsory insurance against civil liability in respect of the use of motor vehicles) has not appointed a claims representative in the Republic of Lithuania. The Bureau shall pay compensation to the injured third parties for the damage caused during a road accident in the territory of the Republic of Lithuania, if the national insurers’ bureau of the state whose insurance undertaking has insured civil liability of the responsible person has signed the Regulations on Cooperation or an agreement with the Bureau on the recognition of reciprocal settlement of claims, with the exception of the cases when the damage has been compensated for by the insurance undertaking which insured civil liability of the responsible person or a claims representative of such undertaking.
7. In the cases when the Bureau pays compensation according to paragraph 1 of this Article for the damaged caused to and handled for the third persons who were injured in another member state of the European Union or a foreign state, compensation shall be paid to the national insurers’ bureau of another state, which reimbursed the damage caused in a road accident, taking into account the Regulations on Cooperation and the legal acts regulating compulsory insurance against civil liability in respect of the use of motor vehicles of the state in which the road accident occurred. Responsibility of the Bureau for the payment of compensation to the guarantee fund of another state for the damage caused in another member state of the European Union with an uninsured motor vehicle specified in paragraph 8 of Article 6 of this Law shall end after 30 days counting from the day of delivery of the motor vehicle to the purchaser. The Bureau shall pay compensation to the national insurers’ bureau of another state or to the guarantee fund of another state also in other cases, in adherence to the requirements of the Regulations on Cooperation or an agreement on the recognition of reciprocal settlement of claims.
8. In the cases when a person injured in the Republic of Lithuania, another member state of the European Union, or a foreign state, who is permanently resident in another member state of the European Union, has in compliance with the legal acts of his country applied for the reimbursement of the damage incurred to a compensation body, operating in his country, the Bureau must pay to the a compensation body of another member state of the European Union the sum requested by it, which has been paid to the injured third party, as well as a set remuneration for claim handling if at least one of the following conditions is satisfied: 1) civil liability of a responsible person is covered by the insurer or the branch situated in the Republic of Lithuania, however, within three months from the date of presenting a claim for damages to the responsible insurer or its claims representative, the insurer or its claims representative has not issued to the injured person a reasoned reply to the claim; or the insurer has failed to appoint a claims representative in another Member State of the European Union in which the injured third party is permanently resident; 2) civil liability of the responsible person whose motor vehicle is normally based in the territory of the Republic of Lithuania, has not been covered or in the case of failure to determine within 2 months from the presentation by the injured third party of a claim to a compensation body the insurer who covered civil liability of the responsible person whose motor vehicle is normally based in the territory of the Republic of Lithuania; 3) damage has been caused in the cases specified in subparagraph 2 of paragraph 1 of this Article and it was not possible to determine within 2 months from the presentation of a claim by the injured third party the motor vehicle which caused a road accident; 4) during a road accident which occurred in the territory of the Republic of Lithuania the damage was caused by the motor vehicle which is normally based in the territory of a foreign state, in the event of failure to determine the insurance undertaking of the member state of the European Union which covered civil liability of the user of this motor vehicle. Article
9. Claims Handled and Settled by the Bureau as Compensation Body of the Republic of Lithuania
10. The Bureau shall act as a compensation body in the Republic of Lithuania and shall handle and settle claims for damages and pay compensation when the injured third party suffers damage in another Member State of the European Union or in a foreign state the national insurers’ bureau of which has joined the Green Card system if all of the following conditions are satisfied: 1) the injured third party is permanently resident in the Republic of Lithuania; 2) the responsible person whose motor vehicle is normally based in another Member State of the European Union has his civil liability covered by an insurance undertaking or a branch of another Member State of the European Union (located outside the Republic of Lithuania).
11. On the basis of paragraph 1 of this Article, the injured third party may present a claim for damages to the Bureau subject to either of the following conditions: 1) within three months from the date of presenting the claim for compensation to the responsible insurer of another Member State of the European Union or its claims representative, the said insurer or its claims representative has failed to give a reasoned reply to the claim; 2) the insurer of another Member State of the European Union which has covered the civil liability of the responsible person has failed to appoint a claims representative in the Republic of Lithuania, provided that the injured third party has not presented a claim directly to the responsible insurer or has presented a claim directly to the responsible insurer but has not received a reply within 3 months.
12. The Bureau shall also settle claims for damages and pay compensation when the injured third party permanently resident in the Republic of Lithuania has suffered damage in another Member State of the European Union if: 1) the insurance undertaking which has covered the civil liability of the responsible person is not identified within two months from the date of the road accident; 2) the motor vehicle which caused the damage is not identified within two months from the date of the road accident if, in accordance with the legal acts of the state in which the road accident occurred, the damage is to be compensated.
13. A claim may be presented to the Bureau after the expiry of the time limit specified in paragraphs 2 and 3 of this Article. A claim may be presented in writing, indicating the circumstances of a road accident and submitting the possessed documents, which substantiate the injured third party’s request. The Bureau must examine the claim for damages and take a decision regarding the payment of compensation within two months of the date when the claim and the available information necessary to determine the circumstances of the road accident and the caused damage were presented, provided that the claim is presented to the Bureau pursuant to paragraph 2 of this Article. When a claim is presented to the Bureau pursuant to paragraph 3 of this Article, the Bureau must examine the claim for compensation of the damage and take a decision regarding the payment of compensation within three months of the date when the claim and the available information necessary to determine the circumstances of the road accident and the caused damage were presented. If it is impossible to pay compensation within the time limit specified in this Article because of the lack of the documents necessary to determine the circumstances of a road accident, the fact of an insured event or the amount of damage, the Bureau must pay compensation within 14 days, starting from the day on which all necessary information and documents were received. Where it emerges that the responsible insurer or its claims representative has provided a reasoned reply regarding the presented claim concerning the payment of compensation, the Bureau shall terminate the examination of the claim. The Bureau shall also terminate the examination of a claim when the injured third party has brought the responsible person or the responsible insurer to court for payment of compensation or when the responsible institutions of another state have provided information that a pre-trail investigation has been started with regard to this road accident or legal proceedings concerning the actions of the injured third party. A decision regarding the payment of compensation shall be taken in accordance with the legal acts regulating compulsory insurance against civil liability in respect of use of motor vehicles of the state in which a road accident occurred and the provisions of the agreements signed between the compensation bodies and guarantee funds.
14. The Bureau shall, without delay but not later than within 14 working days, notify the responsible insurer of another Member State of the European Union or its claims representative in the Republic of Lithuania, the compensation body of another Member State of the European Union and/or the Guarantee Fund, as well as the person who caused the accident, if known, about the received claim for damages from the injured third party (presented in accordance with paragraph 1 of this Article) and the time limits of examination thereof. Article
15. Procedure for Paying Compensation
16. The responsible insurer, its claims representative or the Bureau (except in the case referred to in paragraphs 5 and 6 of Article 17, Articles 18 and 20 of this Law) must pay compensation within 30 days of the date when the claim was presented.
17. If, within the time-limit specified in paragraph 1 of this Article, it is impossible to investigate the circumstances as necessary to establish the fact of the insured event and to assess the size of the damage, compensation shall be paid within 14 days of the date when the investigation of such circumstances could have been completed by making a reasonable effort but not later than within 3 months of the date when the claim was presented (except where damages are awarded by a decision in criminal, administrative or civil proceedings). Where compensation is awarded in criminal, administrative or civil proceedings, it shall be paid within 14 days from the date of receipt of an effective court decision, judgement or ruling.
18. The responsible insurer, its claims representative or the Bureau shall, within 30 days of the date when the claim was presented (or within 3 months

paragraph 2 of this Article), make a reasoned offer of compensation or provide a reasoned reply and evidence releasing from the obligation to pay compensation or entitling to reduce the compensation payable.

1. If the responsible insurer, its claims representative or the Bureau fail to keep to the time-limits specified in paragraphs 1 to 3 of this Article, they shall be obliged to pay late-payment interest of 0.04 percent on the overdue amount for each delayed day. The supervisory institution may also impose sanctions on the responsible insurer or claims representative of the insurance undertaking of another member state of the European Union, as set forth in the Republic of Lithuania Law on Insurance.
2. Compensation shall be paid after the fact of the insured event has been established and the size of the damage assessed, provided that the road accident was reported to the police and provided that the injured third party submitted to the insurer or the Bureau any available evidence of the road accident and the damage, followed the insurer’s or the Bureau’s instructions, if any, provided the insurer or the Bureau with access to any documents that could prove the circumstances, fact and size of the damage and made it possible to investigate the causes of the damage incurred in the road accident and assess the size of the damage, kept the damaged motor vehicle or other property in the condition as immediately after the accident subject to Article 15 of this Law and presented a claim for damages within the time-limit specified in paragraph 4 of Article 16 of this Law. If the injured third party has failed to perform or properly perform his obligations set forth in this paragraph and if such failure affected the investigation of the circumstances in which the damage was caused or resulted in an increase of damage, the insurer or the Bureau may reduce the compensation payable.
3. The amount payable by the responsible insurer or the Bureau by way of compensation to the third party injured in a road accident shall not be higher than sufficient to cover the damage which was caused in the road accident and which is supported by evidence and shall not exceed the sums insured as specified in Article 11 of this Law; the insurer or the Bureau shall have the right to reject invalid claims for compensation of the damage caused in the road accident. At the request of the injured third party, the insurer or the Bureau shall remit the payable sum directly to the repair shop repairing the damaged property in question, which has been chosen by the injured third party. An insurer or the Bureau shall remit the payable sum to this repair shop not later than one working day after the damaged property was repaired and the payment order was presented. If the insurer has paid compensation to the injured third party, compensation shall be paid to the policyholder only in the case when the policyholder had received a written consent of the responsible insurer to pay compensation or if the policyholder proves that the insurer has not given such consent without justified reasons.
4. In cases where several third parties are injured and the sum insured is not sufficient to cover the damage, the responsible insurer or the Bureau shall pay compensation in proportion to the damage suffered by each injured third party.
5. If, after the compensation has been paid, it emerges that there are other injured third parties who are entitled to compensation for the damage caused in the road accident and who have not received it, the responsible insurer or the Bureau shall pay compensation to these parties without exceeding the remainder of the sum insured.
6. Where several persons are liable for the damage, then the respective insurers and the Bureau shall compensate the injured third party in proportion to the liability of the respective responsible person.
7. Persons who, according to the procedure laid down by legal acts, have the right of recourse or subrogation to the person who caused the damage, a claim for damage may present directly to the insurer who covered civil liability of the responsible person or, in his absence, to the person who caused the damage.
8. Where a claim of the injured third party has been satisfied under a voluntary insurance contract, the Bureau shall compensate for the portion of the damage that was not compensated under such claim. After the insurance undertaking has satisfied the claim of the injured third party under a voluntary insurance contract, it shall not be entitled to claim reimbursement for the amount so paid from the Bureau.
9. The Bureau may not request from the injured third party to prove in any way that the responsible person is unable or refuses to compensate for damage.
10. In the event of a dispute between the insurer and the Bureau as to which of them should compensate the injured third party, the compensation shall be paid by the Bureau within 30 days of the date when the injured third party presented the claim to the Bureau pending resolution of the dispute. Where it is impossible to investigate the circumstances as necessary to determine the basis for and the amount of compensation within 30 days, the compensation shall be paid within the time limits specified in paragraph 2 of this Article. If, after the Bureau has paid the compensation, it emerges that the compensation should have been paid by the insurer, the insurer shall reimburse the Bureau for the compensation so paid and for any other amounts related to the payment of compensation.
11. Any disputes between the insurer or the Bureau and the injured third party shall be settled in court. The injured third party who is permanently resident in the Republic of Lithuania, shall have the right to bring legal proceedings in the Republic of Lithuania against the responsible insurer of any member state of the European Union. Any dispute between consumers and insurers shall be examined in accordance with the procedure established in the Law on the Bank of Lithuania.
12. The police shall, not later than within 10 working days from the date of the road accident, provide the insurer or the Bureau with the information about the road accident.
13. The procedure for assessing damages and paying compensation shall be set forth by the Government. Article
14. Payment of Compensation Instead of Insurers in Bankruptcy
15. An injured third party, wishing to receive compensation from the Bureau in the cases provided for in subparagraph 3 of paragraph 1 of Article 17 of this Law when the responsible insurer – member of the Bureau is the subject of bankruptcy proceedings (there is an effective court ruling to start bankruptcy proceedings), must personally or through his representative present a claim to the Bureau together with all information necessary to determine the circumstance of a road accident and the damage caused during the road accident.
16. In the case where the injured third party has presented a claim for damages to the insurer who is going bankrupt, the Bureau takes over from the administrator of the insurer who is going bankrupt a claim of the injured third party as well as the documents proving the damage. The administrator of the insurer who is going bankrupt must transfer these documents to the Bureau within 3 months after the day of coming into effect of a court ruling to take bankruptcy proceedings. The Bureau shall not be liable for the failure by the insurer who is going bankrupt to keep to the time limit for the payment of compensation. The Bureau, when taking over from the insurer who is going bankrupt the documents related to the infliction of damage, shall pay compensation to the injured third parties who are entitled to compensation according to the valid insurance contracts.
17. Where the injured third party has appealed to the court requesting damage compensation from the responsible person or the responsible insurer who is subject to bankruptcy proceedings, the Bureau may not be defendant in such proceedings instead of the insurer who is going bankrupt, however, the injured third party shall have the right to appeal directly to the Bureau that the damage caused during a road accident shall be established and compensation shall be paid in compliance with the procedure laid down by this Law. The injured third party shall also have the right to appeal to the Bureau regarding the payment of compensation also in the cases when the injured party has already awarded the payment of compensation from the insurer who is going bankrupt. After the Bureau pays compensation or part thereof, the injured third party shall not have the right to request to be paid that part of compensation from the responsible person or the responsible insurer who is going bankrupt.
18. Upon having presented a claim in the cases provided for in paragraph 1 or 3 of this Article, or after the Bureau takes over the documents proving the damage, which are in possession of the insurer who is going bankrupt, the injured third party may not be included in the list of creditors of the insurer who is going bankrupt.
19. Upon having received a claim of the third injured party and the documents about the circumstances of a road accident and the damage, the Bureau shall, on the basis of this Law and other legal acts regulating handling and settlement of the claim assigned to its competence, shall handle the claim and, having established the grounds for payment of compensation and its amount, shall pay compensation to the injured third party.
20. The Bureau must pay compensation within 2 months from the receipt of the documents concerning the damage or from the day of the receipt of a claim from the injured third party. In case of failure to investigate the circumstances which are necessary to establish the grounds for payment of compensation or to set the amount of compensation, or the Bureau has not received all the documents necessary for payment of compensation, compensation shall be paid within the time limits specified in paragraph 2 of Article 19 of this Law, however, the Bureau must pay the undisputable portion of the compensation within 2 months from the receipt of the documents from the insurer or from the day of the receipt of a claim of the injured third party.
21. The policyholder who in the case referred to in paragraph 6 of Article 19 of this Law has acquired the right to compensation, shall enjoy all rights of the injured third party, laid down in this Article.
22. The Bureau which pays compensation pursuant to this Article shall become the creditor of the insurer who is going bankrupt.
23. In the cases specified in Article 22 of this Law the insurer who is going bankrupt shall have the right to request from the persons referred to in Article 22 the reimbursement of the amount paid in accordance with this Article for the caused damage. Article
24. Release from the Obligation to Pay Compensation
25. The responsible insurer or the Bureau shall be released from the obligation to pay compensation if: 1) damage occurred as a result of war activities, terrorist attacks, nuclear power impact or state of emergency; 2) damage was caused to a cargo or baggage carried against payment in the responsible person’s motor vehicle; 3) damage was incurred as a result of loss of cash, bijouterie, jewellery and art items, securities, documents, philatelic, numismatic or similar collections or objects.
26. The responsible insurer shall be released from the obligation to pay compensation to injured third parties who voluntarily entered the motor vehicle which caused the damage if the insurer can prove that they knew the motor vehicle was stolen.
27. The Bureau shall not pay compensation to the injured third party if the damage is compensated by the responsible person or another person or if the injured third party was compensated for the damage by the responsible insurer.
28. The Bureau shall be released from the obligation to pay compensation to injured third parties who voluntarily used the motor vehicle which caused the damage where the Bureau can prove that they knew the motor vehicle was not insured. Article
29. Reimbursement of Compensation Paid by the Insurer
30. The insurer who has paid compensation shall be entitled to claim reimbursement of the amounts paid by way of compensation from the responsible person if the latter: 1) was driving the motor vehicle under the influence of alcohol, drugs, narcotic or other intoxicating substances, or consumed alcohol or other intoxicating substances immediately after the accident and before the moment when the circumstances of the accident were investigated, or tried to escape a sobriety test; 2) was driving a motor vehicle which does not meet statutory technical requirements and this was the cause of the road accident; 3) was not in possession of a lawful authorisation to drive the motor vehicle or did not hold a licence permitting him to drive the motor vehicle concerned; 4) left the scene of the accident; 5) caused the damage intentionally.
31. If the user of the insured motor vehicle failed to perform his obligations set forth in Article 12 of this Law or performed them improperly which resulted in an increase of damage through the fault of the user, the insurer shall be entitled to claim reimbursement of the sum paid by way of compensation or part thereof from the user. If the policyholder failed to perform his obligations under the insurance contract or performed them improperly, the insurer shall be entitled to claim reimbursement of the sum paid by way of compensation or part thereof from the policyholder. The amount of the reimbursement claimed by the insurer shall be determined by taking into account the degree of the failure to perform the obligations established, the causal relationship with the road accident, the size of the damage caused by failure to perform obligations, other relevant circumstances, and the Procedure for the Assessment of Damages and Payment of Compensation established by the Government of the Republic of Lithuania.
32. Where after the insurer has paid to the injured third party the compensation or a portion thereof it emerges that the injured third party furnished the false information due to which the compensation has been unduly calculated or wrongfully paid, or that the injured third party was paid the compensation by the persons liable for the caused damage, at the request of the insurer the injured third party must reimburse the compensation or a portion thereof which he has received wrongfully. Article
33. Reimbursement of Compensation Paid by the Bureau
34. The Bureau shall be entitled to claim reimbursement of the sum paid by way of compensation from the person responsible for the damage or from the person who has failed to perform the obligation to conclude an insurance contract where the compensation was paid under subparagraph 1 of paragraph 1 of Article 17 of this Law.
35. The Bureau shall be entitled to claim reimbursement of the sum paid by way of compensation from the person responsible for the damage where the compensation was paid under subparagraph 2 of paragraph 1 of Article 17 of this Law.
36. After having paid compensation to injured third parties in accordance with Article 18 of this Law, the Bureau shall be entitled to claim reimbursement of the amounts paid by way of compensation and of other amounts related to the payment of compensation from the following institutions: 1) a compensation body of another Member State of the European Union in which the insurance undertaking of the responsible person is established if the motor vehicle which caused the damage was insured but the insurance undertaking of the responsible person or its claims representative has not paid compensation for the damage; 2) the guarantee fund of another Member State of the European Union in which the motor vehicle of the responsible person is normally based if the responsible insurer in the Member State of the European Union cannot be identified; 3) the guarantee fund of another Member State of the European Union in which the road accident occurred if the motor vehicle which caused the damage cannot be identified; 4) the guarantee fund of another Member State of the European Union in which the road accident occurred if the damage was caused by a motor vehicle normally based in a foreign state.
37. After having paid compensation to the injured third party, the Bureau shall, on the basis of the Regulations on Cooperation or the provisions of an agreement on the recognition of reciprocal settlement of claims, be entitled to claim reimbursement of the amount paid by way of compensation and of other amounts related to the payment of compensation from the responsible insurer of another Member State of the European Union or a foreign state, the national insurers’ bureau or the guarantee fund of another state.
38. After having paid the amount claimed by a compensation body of another Member State of the European Union, the Bureau shall be entitled to claim reimbursement of the amount so paid from the responsible insurer, the responsible person or the person who did not fulfil the duty to conclude a contract, or the national insurers’ bureau or the guarantee fund of another state, if it has assumed responsibility for this case of causing damage in accordance with the Regulations on Cooperation or the provisions of an agreement on the recognition of reciprocal settlement of claims.
39. After having paid compensation instead of any of its members, the Bureau shall be entitled to claim reimbursement of the amounts so paid from the insurer concerned.
40. Where it becomes known, after the Bureau has paid compensation or part thereof to the injured third party, that the injured third party provided false information which resulted in incorrect calculation of the compensation and illegal payment thereof in respect of damage or where the injured third party received compensation for damage from persons responsible for compensating the damage, the injured third party shall, at the Bureau’s request, reimburse the compensation or part thereof. CHAPTER FOUR Motor Insurers’ Bureau of the Republic of Lithuania Article
41. Motor Insurers’ Bureau of the Republic of Lithuania: Conception and Status
42. The Bureau is an association of insurers authorised to conduct the business of compulsory insurance against civil liability in respect of the use of motor vehicles in the Republic of Lithuania, established pursuant to Recommendation No 5 adopted on 25 January 1949 by the Road Transport Sub-committee of the Inland Transport Committee of the United Nations Economic Commission for Europe and discharging the functions set forth in this Law.
43. When organising and coordinating international cooperation in the field of compulsory insurance against civil liability in respect of the use of motor vehicles, the Bureau may use its name translated into English. Article
44. Amendments to the Statutes of the Bureau Any amendments to the Statutes of the Bureau shall be coordinated with the Ministry of Finance before their registration in the Legal Entities Register. Article
45. Functions of the Bureau When implementing this Law, the Bureau shall perform the following functions: 1) coordinate the activities of the insurers related to compulsory insurance against civil liability in respect of the use of motor vehicles; 2) pay compensation

Article 17

of this Law; 3) act as a compensation body, handle claims and pay compensations as required by the legal acts regulating the Green Card system; 4) collect information related to compulsory insurance against civil liability in respect of the use of motor vehicles, administer the database of compulsory insurance against civil liability in respect of the use of motor vehicles (hereinafter referred to as the “database”), manage the data in the database (including personal data); 5) organise and coordinate international cooperation in the field of compulsory insurance against civil liability in respect of the use of motor vehicles and conclude appropriate agreements; 6) perform the functions assigned to it as a member of the Council of Bureaux, fulfil commitments arising from agreements with the national insurers’ bureaux of other states, perform other functions as required by the legal acts regulating the Green Card system; 7) organise and coordinate the printing and distribution of Green Card forms valid in other states pursuant to the requirements of the legal acts regulating the Green Card system; 8) in pursuance of the Regulations on Cooperation, approve and recall the claims representatives of insurance undertakings of foreign states appointed for claims handling in the Republic of Lithuania; 9) organise seminars and trainings; 10) formulate, together with other competent institutions, a common policy of compulsory insurance against civil liability in respect of the use of motor vehicles in the republic of Lithuania; 11) perform other functions as prescribed in this Law, the Statutes of the Bureau and other legal acts. Article

1. Rights of the Bureau
2. When performing the functions assigned to it, the Bureau shall have the right to: 1) have bank accounts in accordance with the procedure established by the law; 2) conclude agreements and assume commitments; 3) manage, use and dispose of its property and funds; 4) establish branches and representative offices; 5) receive, free-of-charge, any information, including personal data, from state and municipal institutions and establishments as well as from other legal and natural persons, and store this information as necessary for discharging its functions prescribed in legal acts; 6) process personal data and provide information, including personal data, to third persons who have legitimate interest in being so informed, as necessary to ensure the proper functioning of compulsory insurance against civil liability in respect of the use of motor vehicles; 7) exchange information with the national insurers’ bureaux of other states as necessary to implement the legal acts regulating the Green Card system and to fulfil commitments arising from agreements with the national insurers’ bureaux of other states; 8) make proposals to state institutions regarding the drafting and improvement of legal acts; 9) recover the compensation paid in accordance with the procedure established in legal acts; 10) assign other persons to handle the claims falling within the scope of the Bureau’s competence and to pay compensation, defray the cost of administration of such damages and sign agreements necessary for the implementation of this right; 11) handle the claims caused by the users of motor vehicles, pay compensation and sign agreements necessary for the implementation of this right; 12) establish the procedure for handling the claims falling within the scope of the Bureau’s competence and for the payment of compensation, unless such a procedure is established in other legal acts; 13) join international organisations and participate in their activities; 14) use the data stored in state registers and databases; 15) sign agreements with the national insurers’ bureaux of other states as necessary to perform its functions.
3. The Bureau may have additional rights to those established in this Law, the Bureau’s Statutes and other legal acts. Article
4. Database of Compulsory Insurance against Civil Liability in respect of the Use of Motor vehicles
5. When performing the functions of an information centre, the Bureau shall ensure the coordination of collection of data specified in paragraph 3 of this Article and their communication to persons who are entitled to receive such information under this Law.
6. The Bureau shall manage the data stored in the database, including personal data, without the consent of the data subject with the purpose of ensuring that the system of compulsory insurance against civil liability in respect of the use of motor vehicles should function in compliance with the requirements of the legal acts of the Republic of Lithuania and international legal acts.
7. The database shall contain the following data: 1) the registration plate number and other identification data of a motor vehicle normally based in the territory of the Republic of Lithuania as well as data on the user of motor vehicle, such as his personal code (business code), full name (business name) and address of place of residence (establishment); 2) a list of motor vehicles which are exempt under the legal acts of the Republic of Lithuania and of other Member States of the European Union from the obligation to have compulsory insurance against civil liability in respect of the use of motor vehicles, and information as to who shall compensate the damage caused by such motor vehicles; 3) data on standard and frontier insurance contracts and certificates (number of the insurance certificate, period of validity of an insurance contract (where the period of validity of the certificate has expired, also the date of termination of the insurance cover), name of the insurer and other information specified in the insurance certificate); 4) data on the Green Cards and other information indicated therein; 5) data on insurers and their claims representatives; 6) data on institutions or organisations of other Member States of the European Union responsible for the compensation of damage caused to third parties injured in road accidents; 7) data on motor vehicles involved in road accidents in the territory of the Republic of Lithuania; 8) data on persons who caused road accidents and victims of the road accidents as well as information related to the damage done; 9) information provided by the information centres of other states.
8. Data processed in the database shall be provided free-of-charge by establishments, institutions and organisations obliged by the legal acts of the Republic of Lithuania to register and process such data in the registers or databases administered or managed by them (hereinafter referred to as the “institutions providing data”), members of the Bureau, and data subjects. The institutions providing data shall transmit the data to the Bureau by electronic means. Data on the insurance contracts concluded, insurance certificates issued, information related to causing of damage and changes in the said data shall be immediately transmitted by the members of the Bureau to the Bureau by electronic means. The members of the Bureau must transmit by electronic means the data on claims representatives, but not later than within 5 days from the date of appointment of a representative. If the data change, the institutions providing data to the Bureau and members of the Bureau shall be obliged to update them.
9. The data on insurance contracts in the database shall be preserved for a period of seven years after the termination of the insurance contract.
10. The Bureau shall provide the information stored in the database, including personal data, without the consent of the data subject to persons who have a legitimate interest in obtaining it (national insurers’ bureaux of other states under mutual agreements and commitments arising from the Bureau’s membership in the Council of Bureaux, information centres and compensation bodies of other Member States of the European Union and the Swiss Confederation, the members of the Bureau, reinsurers, victims of road accidents, and other persons entitled to receive information of this type).
11. At the request of the injured third party and other persons entitled to access to information contained in the database, the Bureau shall provide them with access to any available data, provided that such persons indicate their legitimate interest in accessing such data, if: 1) the request is made in writing; 2) the request is received not later than within seven years after the date of the road accident; 3) the information is sufficient to identify the motor vehicle or the person in respect of whom the request is made. 8.: The injured third party who is permanently resident in the Republic of Lithuania or who has suffered damage caused by a motor vehicle normally based in the territory of the Republic of Lithuania or who has suffered damage in a road accident occurring in the territory of the Republic of Lithuania shall be entitled to immediately receive the following information from the Bureau: 1) name and address of the responsible insurer; 2) number of the insurance certificate; 3) full name or business name and address of the claims representative of the responsible insurer in the Member State of the European Union in which the injured third party is permanently resident; 4) name and address of the owner or user of motor vehicle; 5) where the damage is caused by a motor vehicle the user of which, under the legal acts of another Member State of the European Union, is exempt from the obligation to conclude an insurance contract in the state of registration, any available information about an authority or institution of another Member State of the European Union responsible for handling the claim.
12. The Bureau shall provide the data specified in paragraph 3 of this Article to the information centres or compensation bodies of other Member States of the European Union at their request. Article
13. Members of the Bureau
14. Membership in the Bureau shall be open to insurers who are authorised, in accordance with the procedure established in legal acts, to conduct the business of compulsory insurance against civil liability in respect of the use of motor vehicles and who have paid the initial membership fee. The insurer who is authorised to conduct the business of compulsory insurance against civil liability in respect of the use of motor vehicles in the Republic of Lithuania may conduct such business only after the insurer becomes a member of the Bureau.
15. Members of the Bureau shall have equal rights when participating in the activities of the Bureau.
16. When participating in the activities of the Bureau, member of the Bureau shall have the following rights: 1) to attend and vote in the general meeting of members of the Bureau; 2) to have access to the Bureau’s documents and information that the Bureau possesses on the Bureau’s activities; 3) to use the services provided by the Bureau; 4) to take legal action to court to overturn the decisions or actions taken by the general meeting of members of the Bureau, the Council of the Bureau and the head of the Bureau where such decisions or actions are in conflict with legal acts; 5) to conclude a voting agreement or an agreement on the transfer of voting rights with another member of the Bureau; 6) to withdraw from the Bureau.
17. Members of the Bureau shall: 1) act in accordance with the provisions of this Law and other legal acts, implement the decisions taken by the general meeting of members of the Bureau and the Council of the Bureau; 2) transfer to the Bureau contributions from the premiums of compulsory insurance against civil liability in respect of the use of motor vehicles (hereinafter referred to as “contributions by members of the Bureau”) in accordance with the procedure and in the amounts set forth by the Government or by an institution authorised by the Government; 3) provide, free-of-charge, the Bureau with information necessary for the performance of its functions; 4) reimburse the Bureau for the expenses related to claims handling and payment of compensation where the Bureau paid compensation for damage instead of the respective insurer; 5) inform immediately the Bureau in the event of acquiring the status of an undertaking in liquidation or bankruptcy.
18. Members of the Bureau may have other rights and obligations established in the Law on Associations and the Statutes of the Bureau.
19. The rights of a member of the Bureau shall be lost: 1) from the date on which the supervisory institution notifies the Bureau of the suspension or cancellation of the insurer’s authorisation to conduct the business of compulsory insurance against civil liability in respect of the use of motor vehicles, effected as a sanction against the insurer; 2) when the general meeting of members of the Bureau adopts a decision to revoke its rights as a member of the Bureau, taking into account its request to withdraw from the Bureau; 3) when the insurer acquires the status of an undertaking in liquidation or bankruptcy.
20. A member of the Bureau may withdraw from the Bureau not earlier than 6 months after giving a written notice and a written statement of withdrawal from the business of compulsory insurance against civil liability in respect of the use of motor vehicles to the general meeting of members of the Bureau. The decision regarding the removal of a member of the Bureau from membership in the Bureau shall be taken by the general meeting of members of the Bureau.
21. A member of the Bureau shall lose its right to participate in the management of the Bureau (to vote in decision-taking) if: 1) it fails to transfer contributions as a member of the Bureau or any part thereof to the Bureau within 5 days of the date set by the Government or by an institution authorised by the Government; 2) within 30 days of the reminder to provide information necessary for the Bureau to perform its functions, it fails to provide such information to the Bureau.
22. The right to participate in the management of the Bureau (to vote in decision-taking) shall be restored as soon as contributions are transferred and any late-payment interest is paid or information necessary for the Bureau to perform its functions is provided. The loss of the right to participate in the management of the Bureau (to vote in decision-taking) shall not release a member of the Bureau from its obligations as a member of the Bureau and its commitments under insurance contracts. If contributions are not transferred or the information necessary for the Bureau to perform its functions is not delivered within 25 days of the date when the right to participate in the management of the Bureau (to vote in decision-taking) was lost, the Bureau shall notify the supervisory institution thereof and the latter shall take a decision on imposing sanctions provided for in the Law on Insurance. A member of the Bureau who has lost its rights as member of the Bureau subject to subparagraph 1 of paragraph 6 of this Article may be reinstated only by a decision of the supervisory institution.
23. The loss of the rights of a member of the Bureau shall not release a member of the Bureau from its commitments under insurance contracts and obligations to the Bureau. Article
24. Management of the Bureau
25. The management bodies of the Bureau shall be the general meeting of members of the Bureau, the Council of the Bureau, and the head of the Bureau.
26. The composition of the management bodies of the Bureau, their competence and the procedure for convening meetings and taking decisions shall be set out in the Statutes of the Bureau.
27. The collegiate bodies of the Bureau shall organise their activities in accordance with work regulations approved by themselves. Article
28. General Meeting of Members of the Bureau
29. The general meeting of members of the Bureau shall be the supreme body of the Bureau.
30. The general meeting of members of the Bureau shall: 1) elect and dismiss members of the Council of the Bureau; 2) amend and supplement the Statutes of the Bureau; 3) approve the estimate of revenue and expenditure of the Bureau; 4) approve annual financial accounts of the Bureau; 5) take decisions on the proposals made by members of the Bureau regarding the activities of the Council of the Bureau; 6) contract an auditing company and fix the amount and conditions of payment for auditing services; 7) take decision on proposals made by individual members of the Bureau or initiated by the head of the Bureau; 8) take decisions on issues related to the restructuring, reorganisation or liquidation of the Bureau; 9) decide other issues falling within the scope of competence of the general meeting of members of the Bureau.
31. Each member of the Bureau shall have one vote in the general meeting of members of the Bureau. The Ministry of Finance, the supervisory institution and the State Consumer Rights Protection Authority may each send one representative to attend the general meeting of members of the Bureau in an advisory capacity.
32. The general meeting of members of the Bureau shall be convened in accordance with the procedure established in the Statutes of the Bureau. The general meeting of members of the Bureau must be convened at least once a year.
33. The general meeting of members of the Bureau may adopt decisions if it is attended by at least half of the members of the Bureau. The Statutes of the Bureau may provide for a possibility to vote in advance. In this case, member of the Bureau may, after having examined the agenda and draft decisions, notify the general meeting of members of the Bureau in advance and in writing of his position (“for” or “against”) in respect of each individual decision. Advance voting shall be included in the quorum of the meeting and in the voting results. The decisions of the general meeting of the members of the Bureau shall be adopted by a simple majority vote of members of the Bureau present, except in cases where the voting concerns decisions referred to in subparagraphs 2 and 8 of paragraph 2 of this Article. The decision referred to in subparagraph 2 of paragraph 2 of this Article shall be taken by at least 2/3 of the votes of members of the Bureau present in the general meeting, while the decision referred to in subparagraph 8 of paragraph 2 of this Article shall be taken by at least 3/4 of the votes of members of the Bureau present in the general meeting.
34. If the general meeting of members of the Bureau does not have a quorum, a repeat meeting shall be convened in accordance with the procedure established in the Statutes of the Bureau. This meeting shall be authorised to take decisions on the issues which were on the agenda of the originally planned meeting, irrespective of the number of members attending the repeat meeting. Article
35. Council of the Bureau
36. The Council of the Bureau is a collegiate body directed by a chairman and elected by the general meeting of members of the Bureau to supervise the activities of the Bureau.
37. The Council of the Bureau shall: 1) develop and set the strategy of the Bureau’s activity; 2) follow and analyse the Bureau’s activity, use of financial resources, organisation of management; conduct a perspective assessment of its financial status, examine reports by the Bureau on these issues; 3) appoint and dismiss the Director of the Bureau; fix his remuneration; decide on incentives and sanctions in respect of the Director of the Bureau; 4) examine disputes between members of the Bureau and disputes between the Bureau and its members related to the business of compulsory insurance against civil liability in respect of the use of motor vehicles; 5) convene a general meeting of members of the Bureau; 6) give opinions and proposals on issues which are on the agenda of the general meeting of members of the Bureau; 7) take decisions regarding the establishment of branches or representative offices of the Bureau and termination of their activity, and also approve their regulations; 8) make proposals to the supervisory institution on imposing sanctions in respect of members of the Bureau; 9) take decision regarding other issues falling within the scope of competence of the Council of the Bureau as provided for in the Statutes of the Bureau as well as issues decided by the general meeting of members of the Bureau.
38. The number of members in the Council of the Bureau, which shall be at least 3, the procedure for electing members and taking decisions, and also the working procedure of the Council of the Bureau shall be established in the Statutes of the Bureau and in the work regulations of the Council of the Bureau.
39. The Council of the Bureau shall be elected in the general meeting of members of the Bureau for a term of 2 years. Members of the Council of the Bureau may be elected only from among the representatives of members of the Bureau who shall be natural persons linked with the insurer, which is a member of the Bureau, by virtue of employment. The chairman of the Council of the Bureau shall be elected by the Council of the Bureau from among its members by a simple majority of votes. Where the employment relationship with the insurer, which is a member of the Bureau, is terminated, the said person shall lose his membership in the Council of the Bureau.
40. The Council of the Bureau and its members shall not have the right to delegate or transfer their functions to other persons.
41. Members of the Council of the Bureau shall be jointly and severally liable to compensate the Bureau for the losses incurred by a decision of the Council of the Bureau taken in breach of this Law and other legal acts. Members who voted against such a decision or who were not present at the meeting where the decision was taken and who lodged a written protest against it with the chairman of the meeting within 7 days after they learned or should have learned of such a decision shall be released from the liability to compensate for losses. Any disputes regarding compensation of losses shall be settled in court. Article
42. Head of the Bureau
43. The activities of the Bureau shall be organised and headed by the Director (Head of the Bureau).
44. The Director of the Bureau shall: 1) organise the work of the Bureau and take decisions necessary to ensure its activities; 2) enter into transactions on behalf of the Bureau; 3) employ and dismiss employees in accordance with the procedure established in the Labour Code and other legal acts, decide on incentives or sanctions in respect of employees; 4) give opinions and proposals to the Council of the Bureau and the general meeting of members of the Bureau on issues falling within the scope of his competence; 5) conclude agreements with the national insurers’ bureaux of other states and with the Council of Bureaux; 6) represent the Bureau in state government and administration institutions, the Council of Bureaux and other international bodies; 7) decide other issues falling within the scope of competence of the Head of the Bureau as provided in the Statutes of the Bureau.
45. The Director of the Bureau shall attend the general meetings of members of the Bureau and meetings of the Council of the Bureau in an advisory capacity.
46. The Director of the Bureau shall act in conformity with the Statutes of the Bureau and other legal acts as well as decisions of the general meeting of members of the Bureau and the Council of the Bureau. Article
47. Revenue of the Bureau
48. The revenue of the Bureau shall be comprised of: 1) initial membership fees of members of the Bureau; 2) contributions by members of the Bureau and late-payment interest on overdue contributions; 3) income from investment of the funds of the Bureau; 4) interest earned on deposits with banks; 5) funds reimbursed to the Bureau; 6) funds paid to the Bureau as fees for the handling of claims as part of its commitments to members of the Green Card system; 7) penalty and interest paid to the Bureau for failure to fulfil commitments to the Bureau; 8) funds and assets donated by natural and legal persons; 9) other funds.
49. The Bureau shall be liable for its obligations to victims of road accidents to the extent of the funds of Bureau’s treasury.
50. The amount of the initial membership fee payable by members of the Bureau as well as the time limits and procedure for the payment thereof shall be set forth by the Ministry of Finance.
51. The amount of contributions by members of the Bureau, the procedure for transferring the said contributions and the amount of late-payment interest on overdue contributions shall be set forth by the Government or by an institution authorised by the Government.
52. The Bureau may use its funds only for the purpose of achieving its objectives and performing its functions. Members of the Bureau who withdrew or were excluded from membership in the Bureau shall not be entitled to any share of the funds and assets accumulated by the Bureau. Article
53. Expenditure of the Bureau
54. The expenditure of the Bureau shall be comprised of: 1) operating costs; 2) compensation for damage and expenses related to the handling of claims in respect of damages incurred in road accidents falling within the scope of competence of the Bureau; 3) expenses related to international financial commitments arising from the Bureau’s membership in the Council of Bureaux; 4) expenditures on activities of the Bureau acting as a compensation body; 5) costs of financial operations and investments; 6) expenditures on the prevention fund formed with the purpose of financing measures aimed at preventing road accidents, improving control over compulsory insurance against civil liability in respect of the use of motor vehicles and promoting public education in respect of compulsory motor insurance; 7) other expenses related to implementation of legal acts and the Statutes of the Bureau.
55. The share of contributions by members of the Bureau to be used for the formation of the prevention fund shall be determined by the Government or by an institution authorised by the Government. Article
56. Treasury of the Bureau
57. The purpose of the Treasury of the Bureau is to guarantee the payment of compensation in cases where the obligation to pay compensation lies with the Bureau and to ensure the implementation of international financial commitments arising from the Bureau’s membership in the Council of Bureaux.
58. The Treasury of the Bureau shall be formed of: 1) a share of contributions to the Bureau by members of the Bureau as determined by the Government or by an institution authorised by the Government; 2) late-payment interest on overdue contributions by members of the Bureau; 3) funds reimbursed to the Bureau for the compensation paid by the Bureau instead of other persons (including litigation costs awarded to and recovered by the Bureau); 4) funds paid to the Bureau as fees for the handling of claims as part of its commitments to members of the Green Card system; 5) income from investment of the funds of the Treasury of the Bureau and interest earned on deposits with banks; 6) borrowed funds; 7) funds and assets donated by natural and legal persons to replenish the Treasury of the Bureau.
59. funds of the Treasury of the Bureau may only be used for the following purposes: 1) to reimburse compensations in respect of the damage caused in road accidents, including those cases where compensation and claims handling fees are paid in compliance with the requirements of the legal acts regulating the Green Card system where the Bureau acts in the capacity of a compensation body, and to reimburse the amounts claimed by the compensation bodies of other Member States of the European Union; 2) to cover the costs of litigation and the costs of loan enforcement in exercising the right of recourse; 3) for compulsory payments and financial guarantees as part of implementing international financial commitments arising from the Bureau’s membership in the Council of Bureaux and commitments to members of the Green Card system; 4) to repay the principal and pay interest on the borrowed funds referred to in subparagraph 6 of paragraph 2 of this Article.
60. No payments may be enforced from the funds and assets of the Bureau, in which the funds of the Bureau are invested, under obligations other those referred to in paragraph 3 of this Article.
61. The Bureau shall be the administrator of the Treasury of the Bureau.
62. The Funds of the Treasury of the Bureau shall be included in a separate account. Article
63. Investments from the Treasury of the Bureau The available funds of the Treasury of the Bureau shall be invested in accordance with the procedure set forth by the Government or by an institution authorised by the Government. Article
64. Appeals against Decisions of the Bureau Decisions of the Bureau may be appealed against in court in accordance with the procedure established in by the law. Article
65. Financial Accounts, Auditing and Control of Activities
66. The Bureau shall have its annual financial accounts audited by an auditing company and approved by the general meeting of members of the Bureau within 4 months after the end of the financial year, and shall submit them to the Ministry of Finance.
67. The Bureau shall annually publish its financial accounts for the preceding year in a national daily newspaper before June 1st.
68. The Ministry of Finance may require that the Bureau submit its financial accounts to the Ministry of Finance within time limits other than specified in paragraph 1 of this Article.
69. The Bureau shall be liable for the accuracy of information in its financial accounts in accordance with the procedure established by the law.
70. At the request of the Ministry of Finance, the auditing company which has audited the financial accounts of the Bureau shall provide explanations regarding the financial accounts.
71. Once a year, the Bureau shall provide the Ministry of Finance with information on the activities of the Bureau. The Ministry of Finance may require that such information be given at shorter intervals. Article
72. Specific Features regarding the Restructuring and Closure of the Bureau
73. The Bureau may be restructured, reorganised or liquidated as laid down by a separate law.
74. The Minister of Finance, on the basis of his own decision, or the general meeting of members of the Bureau, on the basis of its decision taken by a majority of 3/4 of the votes, may request the Government to introduce a draft law regarding the restructuring, reorganisation or liquidation of the Bureau.
75. Where the Bureau is reorganised or liquidated by a court decision, the rights and obligations of the Bureau are transferred to another legal entity registered in the Republic of Lithuania, which is assigned to perform the functions of the Bureau by the law. CHAPTER FIVE CONTROL OF INSURANCE Article
76. Control of Insurance
77. The control of compulsory insurance against civil liability in respect of the use of motor vehicles is a check on insurance of the motor vehicle concerned.
78. In the Republic of Lithuania, the control of compulsory insurance against civil liability in respect of the use of motor vehicles shall be carried out by the police, the State Border Guard Service under the Ministry of the Interior, undertakings, which conduct state technical inspections, and a body responsible for registration of motor vehicles.
79. A person responsible for the conclusion of an insurance contract shall be obliged to have the motor vehicle covered by compulsory insurance against civil liability in respect of the use of motor vehicles in conformity with the requirement of this Law and the sum insured shall be not lower than specified in Article 11 of this Law: 1) on the date of registration of the motor vehicle at the latest; 2) before putting the motor vehicle to use or before transferring it for use to another person, where no registration is required for the motor vehicle concerned; 3) before crossing the border, where the user of motor vehicle intending to travel acr