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Friday, 8 March 2013

Law On Compulsory Motor Third Party Liability Insurance


The Parliament adopts the present organic Law.

Chapter I
GENERAL PROVISIONS

Article 1 - Range of Application

The present Law regulates legal relationships between Insurers, Insureds and Third Parties that arise from contracts of compulsory third party liability insurance against damage caused by motor vehicles, as well as mode of writing this class of insurance.

Article 2 - General Definitions

According to the present Law the below mentioned general definitions mean as follows:

Road accident – an unforeseen occasional event caused by one or several motor vehicles that resulted in damage to several people and that may entail claims;

Compulsory motor third party liability insurance against damage caused by motor vehicles (hereinafter, compulsory MTPL insurance) means conclusion of an insurance contract certified either by an inland compulsory MTPL policy and/or international Green Card policy according to which the Insurer, authorised by this Law to write compulsory motor third party liability insurance, is obliged vs. certain insurance premium, paid by the Insured, to compensate damage caused during insurance contract period of validity due to a road accident;

Insured – an individual or a legal entity that has made a compulsory motor third party liability insurance contract;

Motor vehicle – a self-propelled land-based mechanical vehicle excluding railway ones, that is used for shipping passengers, luggage and cargo as well as for doing other work and services related with transportation, i.e. cars, busses, mini-busses, trolley busses, lorries (inclusive special-purpose ones), motor cycles, tractors. 

According to the present Law, trailers, semi-trailers and similar vehicles, other self-propelled vehicles both town or non-town, both, admitted for use in compliance with the valid legislation or registered abroad by competent authorities, shall be an integral part of the category of motor vehicles;

National Bureau of Motor Insurers - a National Bureau in the Republic of Moldova set up in conformity with the Law on Insurance No.407-XVI as of 21 December 2006;

International Green Card Council of Bureaux (hereinafter - Council of Bureaux) is a body to be formally joined by all national bureaux of EU and other associated European member countries, which is responsible for management and introduction of international system for MTPL insurance;

Claim file – the file that contains all documents necessary for determining claim validity and claim settling;

 MTPL cover territory (hereinafter, cover limits) – the territory of the Republic of Moldova (internal compulsory motor third party liability insurance) and the territory of countries the National Bureaux of which are parties of the Agreement between national green card insurance bureaux of EU and other associated European Community member countries signed by the National Bureau of Motor Insurers (external compulsory motor third party liability insurance);

Sufferer – any person possessing the right to insurance compensation for property damage or bodily injury caused by a road accident;

MTPL insurance policy – a policy of compulsory MTPL insurance valid in the territory of the Republic of Moldova, that certifies making the contract of compulsory motor third party liability insurance;

Green Card insurance policy – an international insurance document issued on behalf of a National Bureau that certifies existence of compulsory MTPL insurance valid beyond the territory of the country – issuer of the policy in conformity with Recommendation No.5 as of 25 January 1949 adopted by the Sub-Committee on Motor Transport of the Committee for Internal Transportations within the European Economic Community of the United Nations Organisation;

Owner of a motor vehicle – an owner of a motor vehicle by right as well as a person owning a motor vehicle on the base of a rent contract, leasing contract or any other agreements specified in the legislation;

Damage – a negative exposure of a physical or juridical person resulting from occurrence of the insured event covered by the contract of compulsory motor third party liability insurance;

General Regulations of the Council of Bureaux – an official document  adopted by the Assembly of the Council of Bureaux in Rethymno (Crete) on 30 May 2002, that comprises all obligatory provisions that govern relationships between National Bureaux of Motor Insurers of the countries – members of the International Green Card System;

Specialised enterprise – a physical or juridical person possessing the respective permission (registered in conformity with the Law) that deals with sale of motor vehicles, component and spare parts and/or works on service and repair of motor vehicles;

User – any person that drives a motor vehicle – an insured, people specified in the insurance contract, other people driving the car both, at or without consent of its owner. When being trained as a driver the user shall be the person that exercises coaching;

Bonus - malus system is a system of premium discounts or increases on compulsory MTPL insurance applied depending on claim history;

Original cost – an original cost of a damaged motor vehicle means as follows:

- the selling value applied by local specialized enterprises and expressed in Moldovan currency at the official rate of exchange of the Moldovan National Bank as on the date of occurrence of the road accident;

- the respective price from the specialized catalogue in Moldovan lei at  the rate of exchange of the Moldovan National Bank as on the date of occurrence of a road accident, for motor vehicles that are not sold by local specialized enterprises;

- the cost established by equating to prices on motor vehicles with similar technical parameters both, for motor vehicle models on which prices have not been yet established and which are no longer manufactured;

Depreciated cost is the cost of motor vehicle parts remaining non-damaged after full destruction of a motor vehicle or being in the state when it can not be reinstated though not exceeding 25% of the cost of the motor vehicle on the date of occurrence of the insured event.

Article 3 - The Subject of Compulsory Motor Third Party Liability Insurance

The subject of compulsory motor third party liability insurance is third party liability of the motor vehicle owner for property damage or bodily injury caused as a result of a road accident that occurred in the territory covered by insurance.

Article 4 – The Category of Persons Liable to Obtaining Compulsory Motor Third Party Liability Insurance

(1) Physical and juridical persons owning motor vehicles liable to registration in the territory of the Republic of Moldova must be insured against third party liability sequencing from damage caused as a result of a road accident occurred in the territory covered by insurance.

(2) Persons that enter the territory of the Republic of Moldova driving motor vehicles registered abroad shall be considered insured provided they

a) Are insured in conformity with the present Law;
b) Possess international insurance documents valid in the territory of the Republic of Moldova.

Article 5 - Requirements to the Insurer Writing Compulsory Motor Third Party Liability Insurance

(1) The Insurer may write compulsory internal motor third party liability insurance provided in addition to requirements specified in the Law on Insurance he meets the following conditions:

a) He has at least one claim representative in each municipiu (region) of the Republic of Moldova;

b) He is equipped with the respective hardware, software and staff which allows detail accounting of insurance documents, information/data centralizing and simultaneous electronic data transfer on motor third party liability insurance for supplementing periodically the central uniform database developed by the National Bureau of Motor Insurers and the State Insurance Supervisory Office;

c) He is not in the process of financial invigoration or insolvency specified in the special legislation on insurance and insolvency;

(2) The Insurer may write external compulsory motor third party liability insurance provided in addition to conditions stipulated in paragraph (I) he complies with the following requirements:

a) He participates in the initial monetary contribution to the Compensation Fund;
b) He participates with equal monetary contributions in creating the Bank Guarantee, specified by the Council of Bureaux, this obligation being valid during the whole period while the National Bureau of Motor Insurers is a Transitional Member of the Council of Bureaux.

(3) In order to apply bonus – malus system Insurers have access to the uniform database to obtain information regarding Insureds’ claim history.

(4) Data liable to collection and transfer to the uniform database, developed at the national level are specified in the normative acts developed by the State Insurance Supervisory Office.

Article 6 - The Claim Representative 

(1) An Insurer of motor third party liability shall appoint the claim representative in each branch and/or representation. If an Insurer has neither branch nor representation in any municipiu, insurance broker (a legal entity) shall be authorised by the Insurer to be his claim representative in this municipiu.

(2) The claim representative shall collect submitted claims and relevant information necessary for examining and settling claims by the Insurer; he also has the right to conclude insurance contracts.

(3) The claim representative has the right to make decisions within limits established by the Insurer in order to represent the latter in his relationships with the sufferer. Appointment of the claim representative does not exclude the right of the sufferer or his Insurer to initiating proceedings against the person guilty in the road accident or his Insurer.

 (4) Granting insurance brokers with authorities of the claim representative does not mean setting up a branch or representation by the Insurer of motor third party liability.

(5) The insurance broker may exercise his activity as a claim representative on behalf of several insurers.

Article 7 - The Insured Event

(1)In conformity with compulsory motor third party liability insurance an insured event is a road accident (made by a motor vehicle the owner of which has compulsory motor third party liability insurance) resulting in damage:

a) Caused both, during driving the car or the latter being parked;
b) Occurred as a sequence of occasional disconnection of a trailer or semi-trailer or other types of trailers;
c) Provoked by installations or devices with which the car has been equipped;
d) Caused during entering or leaving the car resulting from leakage, scattering or occasional fall of shipped substances, materials or goods;
e) Occurred during boarding or leaving the motor vehicle.

(2) The Insured bears no liability if a road accident:
a) Is a result of force-majeure circumstances or war period measures, extraordinary situations, natural calamities, nuclear explosion, radiation or radioactive contamination, riots, terrorist acts;
b) Has been made by the sufferer.
 
Chapter II
THE CONTRACT OF COMPULSORY MOTOR THIRD PARTY LIABILITY INSURANCE


Article 8 - Mode of Concluding Contracts of Compulsory Motor Third Party Liability Insurance

(1) Compulsory motor third party liability insurance shall be implemented through direct making the insurance contract between the owner of a motor vehicle and the Insurer (possessing the licence for writing compulsory motor third party liability insurance).

 (2) MTPL insurance contract shall be concluded: 
a) With obligatorily indication of people (limited number) admitted to use the motor vehicle in respect of which the contract is concluded); or
b) Without indication of people (unlimited number) admitted to use the motor vehicle in respect of which the contract is concluded.

(3) The respective application shall be submitted to the name of the Insurer in order to conclude the insurance contract. The Insurer may not decline accepting, considering and making decision on insurance application.

(4) The insurance contract evidences existence of compulsory motor third party liability insurance. Conclusion of the contract of internal compulsory motor third party liability insurance is evidenced by issuing the policy of compulsory motor third party liability insurance; conclusion of the contract of external compulsory motor third party liability insurance is evidenced by issuing the Green Card policy.

(5) The forms and contents of insurance applications, insurance contracts and internal MTPL and Green Card policies are similar for all Insurers and are developed by the State Insurance Supervisory Office.

(6) Physical and juridical persons that own more than one motor vehicle, registered or liable to registration in the Republic of Moldova may conclude a single motor third party liability contract mentioning in the contract the number of insured motor vehicles, their technical parameters and identification data so that the Insurer may issue an insurance policy per each motor vehicle.

(7) When making the insurance contract the owner of the motor vehicle shall allow the Insurer to inspect technical status of the motor vehicle and shall state its claim history in the application.

(8) Services on compulsory motor third party liability insurance (both, internal and external) are rendered only in premises of Insurers or intermediaries equipped with sales registers and hardware allowing to register and account contacts and transfer data to the centralised database of the Insurer, National Bureau of Motor Insurers and the State Insurance Supervisory Office.
 Article 9 – The Period of Validity of the Insurance Contract

(1) The contract of compulsory motor third party liability insurance shall be concluded for the period of 12 months except cases specified in paragraphs (2)-(4). Insurance is considered to be valid provided the Insured has paid the insurance premium for the period of insurance corresponding to the contract term.

(2) It is permitted to conclude insurance contacts for the period of less than 12 months for motor vehicles as follows:
a) Those used for seasonal agricultural works;
b) Those possessing temporary registration numbers;
c) In other cases stipulated by the legislation.

(3) The contract of external compulsory motor third party liability insurance may be concluded for the period less than 12 months though no less than 15 days.

(4) The people that use in the territory of Moldova vehicles registered abroad, either non - insured or with insurance which expires during stay in the Republic of Moldova, shall conclude contracts of compulsory motor third party liability insurance either when entering the territory of the Republic of Moldova or at the latest on the date of insurance term expiry in the authorised premises of the Insurer. Insurance contracts shall be concluded for the whole period of staying in the territory of the Republic of Moldova though no less than 15 days.

(5) Insurer’s liability commences since the date specified in the insurance policy and expires either at 00.00 of the last day of the term, specified in the insurance policy, or earlier than this date when the motor vehicle is prohibited to be driven. The insurance policy may be issued only after the insurance premium is paid.

Article 10 – Termination of the Insurance Contract

(1) The contract of compulsory motor third party liability shall be terminated as follows:
a) In case of excluding the motor vehicle from the government register and/or expropriation;
b) In case of liquidating the Insured (the legal entity) or Insured’s (physical person) death;
c) In case of issuing final judgement by the court regarding contract termination: as well as
d) In other cases stipulated by the legislation.

(2) The insurance contract shall be terminated in case of occurrence of the insured event and claim payment.

(3) When the contract is terminated due to excluding a motor vehicle from the government register and/or expropriation the Insurer shall return to the Insured the full insurance premium for full months remaining till contract expiry less actual management expenses though no more than 20 per cent of the insurance premium liable to repayment.

(4) The insurance contract shall be considered invalid in cases specified in the legislation in force. The contract is not be applied to road accidents occurred due to Insured’s guilt before concluding the respective contract.


Chapter III
INSURANCE PREMIUMS AND CLAIMS LIMITS


Article 11 - Insurance Premiums

(1) The basic insurance premium on internal and external compulsory third party liability insurance shall be established and reviewed by the State Insurance Supervisory Office no less than once a year in conformity with the methodology approved by the Government.

(2) The insurance premium shall be calculated on the basic insurance premium with the use of adjusting coefficients established in conformity with the methodology mentioned in paragraph (1) and bonus – malus system.

(3) Insurers are prohibited to collect premiums less than premium amounts calculated on the base of the basic premium with the use of adjusting coefficients except cases specified in article 12.

Article 12 - Discounts and Increases to Insurance Premiums

(1) The Insurer may offer discounts up to 25% of the insurance premium amount to physical persons that have reached pension age, as well as to persons with locomotor apparatus deficiencies that own motorcycles and cars adapted to their abilities.

(2) On contracts of motor third party liability insurance concluded for the period no less than 12 months in compliance with article 9, paragraphs (2) and (4), insurance premiums shall be calculated monthly and constitute each month 1/10th of the annual insurance premium though may not exceed the insurance premium corresponding to insurance period of 12 months.

(3) When making contracts of internal compulsory motor third party liability insurance with legal entities that perform in the domain of international goods’ and passengers’ transportation, exercised under TIR – CARNET and INTER - BUS systems, Insurers may offer discounts up to 60 per cent of the insurance premium calculated in conformity with article 11, paragraph (2), exclusively in cases when international carriers confirm existence of the Green Card policy with the insurance period of 12 months. 

(4) When calculating the amount of insurance premiums to be paid the Insurer shall apply bonus – malus system in conformity with the procedure, established by the State Insurance Supervisory Office that stipulates annual 5% decrease (though no more than 50% during 10 years) of insurance premiums on compulsory motor third party liability insurance for users non-committing road accidents, and premium increase for users that committed road accidents.

Article 13 - Mode of Payment of the Insurance Premium

(1) The insurance premium shall be paid fully for the whole period of insurance specified in the insurance policy.

(2) The evidence of paying the insurance premium shall be provided by the Insured. A sales voucher or payment order shall be a document confirming premium payment.

Article 14 - Limits of Insurer’s Liability 

(1) Insurance indemnity shall be established and paid within limits of Insurer’s liability.

(2) Liability limits of the Insurer comprise as follows:

a) MDL500, 000 for damage or loss of property independent on the number of people suffered due to the road accident;
b) MDL350, 000 for bodily injury or death of each sufferer though no more than MDL700,000 independent on the number of people suffered due to the road accident.

(3) Indemnities stipulated by the contract of compulsory motor third party liability insurance shall be paid independent on the number of road accidents occurred during the period of insurance.

(4) When the amount of damage caused by one and the same road accident to many people, including court expenses, exceeds the established limits, indemnity shall be paid to each sufferer within the established limits proportional to the ratio between the maximum limit and the total claim amount.

(5) In case when the amount of damage exceeds Insurer’s liability limits, specified in paragraph (2), the sufferer has the right to file the court claim against the person guilty in the road accident in order to compensate damage exceeding the established limit.

(6) Motor vehicle owners have the right to make contracts of facultative motor third party liability insurance in order to cover damage exceeding the limits specified in paragraph (2).

Chapter IV
CLAIMS INDEMNIFICATION


Article 15 - Claims Indemnified by the Insurer

 (1) The Insurer compensates damage provided it has been caused due to guilt of the Insured or motor vehicle user inclusive when on the day of occurrence of the road accident:

a) The car user has not been included into the insurance contract concluded between the car user and the Insurer;
b) The car user or the Insured lacks the driving licence of the respective category;

c) The car user or the Insured has not respected the safety code specified by the law and requirements to the state and safety of the motor vehicle.

 (2) In case of bodily injury or death the insurance indemnity shall be paid both, to people beyond the motor vehicle that caused the road accident and people inside this motor vehicle, except the motor vehicle user.

(3) Family members of the Insured, car user or any other persons whose third party liability has occurred as a result of the road accident and has been covered by compulsory motor third party liability insurance shall not be excluded from the list of beneficiaries of insurance indemnity paid for bodily injuries.

(4) In case of loss or damage of property the insurance indemnity is paid for property being outside the motor vehicle that made the road accident, except property, specified in article 16. On property located in the motor vehicle the insurance compensation is paid only in case when property shipment has been exercised on the base of contractual relationships with the owner or user of the motor vehicle as well as when property has not belonged to the owner or user of the motor vehicle guilty in the road accident. 

(5) When damage has been caused by a trailer it is covered by motor third party liability insurance only provided:

a) It has been fixed to the motor vehicle; or
b) It has been separated from the motor vehicle and continued moving.

(6) Damage caused by a trailer is covered by motor third party liability insurance provided:

a) It has not been fixed to the motor vehicle; or
b) It has been separated from the motor vehicle and does not move.

(7) Provisions of paragraph (5) are applicable only in cases when the motor vehicle has been fastened for towing purposes.

Article 16 - Claims Non-Indemnified by the Insurer

The Insurer shall not indemnify: 

a) The part of damage that exceeds insurance liability limits specified in article 14, paragraph.(2) on the date of road accident occurrence,  independent on the number of sufferers and the number of people guilty in causing damage;

b) Damage caused at the working place by devices or installations assembled in the motor vehicle and used as a working equipment or device;

c) Damage caused by accidents occurred during loading and unloading, these accidents constituting risks of professional performance;

d) Damage resulting from shipping dangerous substances (radioactive, inflammable, explosive) provided the risks of their transportation are liable to compulsory insurance;

e) Damage related with environment contamination as a result of an accident;

f) Damages caused by loss or destruction of securities, money, precious stones, items with precious metals and stones, items of art and other intellectual property;

g) Property cost decrease after repair;

h) Damage caused when using the motor vehicle in sport competitions and trainings arranged relevant places;

i) Damage caused under situations when Insurer’s liability either has not yet commenced or has already terminated;

j) Damage caused to property of physical or juridical persons that concluded the contract of motor third party liability insurance provided it has been made by the motor vehicle owned by them;

k) Amounts that the car user guilty in causing damage shall pay to the car owner, that allowed to use his motor vehicle by proxy, for damage or loss of the motor vehicle;

l) Amounts of money to be paid for compensating moral damage caused by the road accident.

The sufferer has the right to initiate the court suit against the person guilty in occurrence of the insured event in order to compensate damage excluded from motor third party liability insurance in conformity with paragraph (1).
Article 17 - Claims Compensation to Be Paid in Case of Sufferer’s Guilt 

(1) When the parties are either guilty in the accident or damage aggravation, each party shall compensate the part of damage for which it is responsible. In this case liability of each party shall be determined on the base of compiled acts and other evidences.

(2) If it is impossible to determine the amount of each party liability than according to paragraph (1) both parties shall share equal liability; in addition each party has the right to compensation in the amount equalling to that in which it does not bear liability for accident occurrence.

Chapter V
CLAIMS NOTIFICATION AND DETERMINATION


Article 18 - Obligations of the Insured

In case of occurrence of a road accident the Insured or car user:

a) Shall take all possible steps to decrease the caused damage;

b) Shall immediately after occurrence of the road accident notify either the police or other competent authorities and request compiling the report describing reasons and circumstances of the road accident and its sequences;

c) Shall notify within 48 hours since occurrence of the road accident the Insurer that issued the policy of compulsory motor third party liability insurance. Accident participants that own policies of compulsory motor third party liability insurance shall, independent on the results of determining the guilty person, notify the respective Insurers and take steps to liquidate damage; 

d) Shall notify accident participants and sufferer or his relatives about owning the policy of compulsory motor third party liability insurance and necessary information about this insurance.

Failure to comply either by the Insured or by car user with provisions specified in paragraph (1), items b) and c) does not release the Insurer from his obligation to pay indemnity; however the Insurer is entitled to initiate a regress claim regarding additional expenditures that arose due to failure to meet the above-mentioned obligations.

(3) In case of heavy bodily injury or death of the Insured or car user guilty in the road accident the sufferer shall obtain information about the Insurer of the guilty person from the National Bureau of Motor Insurers.

Article 19 - Obligations of the Insurer

(1) After receiving notification about the road accident the Insurer shall do as follows:

a) Open the claim file;

b) Request from competent authorities (police, fire brigade, prosecutor’s office and medical institutions) information regarding the road accident and its sequences specified in article 21 paragraph (3) item a);

c) Examine the damaged property and compile the report on damage validity within 5 working days since the date of receiving notification about occurrence of the road accident;

d) close the claim file on the material damage within no more than 15 calendar days since the date of submitting by the sufferer the document necessary for closing the claim file;

e) Close the claim file on bodily injury or death within no more than 10 calendar days since the date of submitting by the sufferer the last document confirming damage;

f) Pay insurance indemnity within the term specified in this Law.

(2) The Insurer shall make a decision in respect of the claim application and pay insurance indemnity within the term not exceeding 3 months since the date of notification about the insured event.

Article 20 - Rights and Obligations of the Sufferer

(1) The rights of the person that suffered in the road accident made in the territory of the Republic of Moldova by the motor vehicle owned by the Insured shall be applied against the Insurer of motor third party liability either directly at his location or through his claim representative within the limits of Insurer’s liability, stipulated by the present Law.

(2) The rights of the person that suffered in the road accident occurred in the territory of the Republic of Moldova by the motor vehicle owned by a person insured abroad are applied against the Insurer of this person through the National Bureau of Motor Insurers provided requirements specified in article 4, paragraph(2) b) have been respected.

(3) The sufferer can make application about claim compensation directly to the Insurer of motor third party liability insurance or to the appointed by him representative independent on whether the Insured has met or has not meet his obligation regarding notification, specified in article 18, paragraph (1) c).

(4) The Insurer has no right to decline considering and making decision regarding the application submitted in conformity with paragraph (3).

       (5) The rights of the person suffered as a result of the road accident when either the guilty person and the motor vehicle remained non-identified or the owner of the motor vehicle has not concluded the contract of compulsory motor third party liability insurance shall be exercised against the National Bureau of Motor Insurers and indemnity shall be paid in conformity with article 14.

(6) The sufferer or his legal representative shall allow, within the terms specified in article 19, paragraph (1) c), access of the Insurer or his representative to the property damaged as a result of the road accident so that the Insurer might have possibility to determine the actual damage amount.

(7) When sufferer’s or his representative’s failure to comply with obligations specified in paragraph (6) results in impossibility of compiling the claim file or calculating the damage amount, the Insurer is released from his obligation to pay insurance indemnity.

Article 21 - Claim File/Claim Validity

 (1) The Insurer, and the National Bureau of Motor Insurers, in cases stipulated in the present Law, opens claim files and determines damage validity after being submitted the claim application and/or evidence of  Insured’s liability.

(2) If the Insurer has failed to inspect the damaged property and to compile the report about claim validity within the time specified in article 19, paragraph (1) c), the sufferer has the right to use services of either an independent surveyor or surveying institution to assess damage without presenting damaged property to the Insurer.

(3) A claim file shall compulsorily include the following documents:

a) Copies of documents on determining the fact and circumstances of the road accident, compiled by workers of police, fire brigade, prosecutor’s office and medical institution;

b) Explanation of the Insured or the car user regarding the road accident except cases of heavy bodily injuries or death of the Insured or car user resulting from either the road accident or attempt to avoid liability;

c) Sufferer’s application for damage ascertaining, assessing and paying indemnity;

d) The report on damage validity;

e) An additional report on ascertaining damage, and when necessary;

f) An act of assessing costs for repair and/or replacement of damaged parts with prices indication, compiled by a specialised external agent, chosen by the parties;

g) Documents confirming the fact of making repair, replacement of damaged parts and their cost, compiled by the specialised external agent, chosen by the parties;

h) Documents confirming existence of bodily injuries or death;

i) Documents specified in article 25, when necessary;

j) The final judgement of the court regarding compensation amounts and its payment order in case of necessity;

k) Copies of accounting documents confirming indemnity payment;

l) Written confirmation by the sufferer or his representative the fact of indemnity receipt and lack of complaints to the Insurer. This confirmation shall be compiled in two copies (one copy for each party) and signed by the parties;  

m) Written obligation of the sufferer to repay the received indemnity in case when documents prepared by the workers of police, fire brigade, prosecutor’s office and medical institution are annulled.

(4) The minutes on claim validity ascertainment shall be compiled by the Insurer with the participation of the Insured and the sufferer or their representatives on the base of the proxy, and shall be signed by all people participating in minutes compiling.

(5) Eventual objections of the parties regarding the ascertained damage shall be reflected either in the minutes or in the annex to it.

(6) Following damage ascertainment the Insurer shall within 5 days issue to the sufferer an extract from the claim file that contains the number of the claim file, car components considered as damaged during the road accident, adopted technical solutions (repair or replacement) as well as the list of documents, specified in paragraph (3), that are needed for closing the claim file and making payments.  

(7) The sufferer shall study all documents contained in the claim file and express by his signature either consent or disagreement with solutions offered by the Insurer.

(8) When during dismantling or repair of the damaged property other damages caused during the accident are revealed, additional minutes are compiled about damage ascertainment with the participation of the same people that participated in the initial damage ascertainment.

Chapter VI
INDEMNITY CALCULATION AND PAYMENT


Article 22 - Mode of Indemnity Calculation

(1) Indemnity amount is calculated on the base of written consent between the Insured, the sufferer or his legal representative and the Insurer, or in case of failure to come to an agreement, on the base of the final court judgement that came into effect.

(2) In case of establishing the amount of indemnity by the court decision the rights of the person that suffered as a result of the road accident made by the motor vehicle used by people insured in the Republic of Moldova, shall be exercised against the motor TPL Insurer within limits of his liability stipulated by the present Law, with obligatory involvement of a person or persons responsible for committing the road accident as the third parties non –making demands on the point of issue.

(3) Indemnity may not be established upon agreement between the Insured, sufferer/his representative and Insurer, if:

a) The person that pretends to indemnity receipt is the husband (wife) or dependant or the worker of the Insured responsible for causing damage;

b) Persons that pretend to indemnity receipt in case of bodily injury or death are children or parents or brothers or sisters of the Insured, responsible for causing damage and that are not his dependants. 

(4) When receding from paragraph (1) in situations specified in paragraph (3), and in cases of non-appearance of the Insured, indemnity amount shall be established in his absence in conformity with the agreement concluded between the Insurer and the sufferer.

(5) The agreement between the Insured, sufferer and Insurer shall bear total, unconditioned and definitive character and settle all claims arising from damages that existed or were revealed on the date of making the agreement, for damages that have been covered this way except situations when after paying indemnity for bodily injury the health state of the sufferer worsened or he died as a result of the same road accident. 

(6) When the motor vehicle is the subject of the criminal case, indemnity may be established on the base of the agreement between the Insured, sufferer and Insurer in case when:

a) In conformity with the Law the criminal case may be ceased by parties’ reconciliation;

b) Though the final court judgement has come into legal effect, indemnity determination is stipulated in the subsequent civil suit;

c) When the criminal case may not be ceased through parties’ reconciliation, however consent has been given to determine indemnity on the base of the agreement concluded between the Insured, sufferer and Insurer. 

(7) In case of property damage or loss indemnity shall be determined on the base of claims initiated by the sufferers though it shall not exceed the amount equalling to difference between property cost as on the date of occurrence of the insured event and its depreciated cost and the maximum indemnity limit specified by the present Law.

(8) Indemnity amount includes the following expenses:

a) Those for making steps targeted at damage decrease;
b) Those for shipping damaged property to the place of repair, parking or storage;
c) Those related to the insured event and born by the Insured or the sufferer during the civil suit;

d) For making technical expertise at the request of the sufferer either according to article 21, paragraph (2) or on the base of the court judgement.

(9) Expenses specified in paragraph (8) shall be indemnified only after their documentary confirmation.

(10) If in case of property damage or loss the competent body of the public authority has failed to determine reasons and circumstances of making the road accident or causing damage, the latter may be established by interested parties using any method specified in the legislation. 

(11) When on the date of occurrence of the road accident the sufferer has the valid insurance contract on property damaged or destroyed as a result of this accident, its owner shall receive indemnity on the base of this contact.  

(12) When in order to receive indemnity the sufferer applies to the Insurer with which he concluded the property insurance contract, for damage compensation, ascertainment of the road accident, adoption of technical solutions, damage ascertainment and assessment, the latter may be claimed from the Insurer of the guilty person, owning motor third party liability insurance, within the limits established by the present Law. 

(13) In order to comply with paragraph (12) the Insurer with which the sufferer concluded the property insurance contract, shall recover indemnity, paid by him to the sufferer, from the Insurer of compulsory motor third party liability of the guilty person within the limits specified by this Law for one and the same road accident. 

Article 23 - Indemnity Calculation in Case of Damage or Loss of a Motor Vehicle

 (1) Indemnity for damage or loss of the motor vehicle may not exceed:

a) Value of the real damage;
b) Difference between value of the motor vehicle on the date of occurrence of the road accident and its depreciated cost according to the report of re-evaluation;
(c) Indemnity limit stipulated by the present Law.

(2) The amount of damaged caused to the motor vehicle is equal to the cost of its components repair or cost of damaged parts or cost of their dismantling and assembling, cost of replacement including expenses for materials, necessary for repair and replacement, established in conformity with prices applied in specialised repair service.

(3) Liable to replacement are parts or components the repair and use of which is technically impossible due to their heavy damage, and even if repair is possible, its cost, including materials’ expenses as well as necessary dismantling and assembling, will exceed the cost of new pats or components inclusive materials’ expenses and respective dismantling and assembling. 

(4) The cost of the motor vehicle repair shall be determined on the base of documents issued by the specialised repair service selected by the parties.

(5) Full painting of the motor vehicle is considered necessary when over 50% of the total external motor vehicle surface is damaged.

(6) The prices practiced by the specialised repair service are applicable to materials and components and new parts used for replacement.

(7) When purchase of parts and materials necessary for motor vehicle repair is made in foreign currency their cost is equated to the cost of purchase specified in the submitted expenditure documents (inclusive expenses for shipping, customs fees less accompanying V.A.T.), equivalent to the cost in Moldovan lei at the rate of exchange established by the National Bank of Moldova on the date of invoice payment.  In such cases the cost of components, parts or materials (provided they are on sale in the Republic of Moldova) shall not exceed the value of sales applied by the specialised service in the Republic of Moldova.

(8) In case of lack of prices on some car component parts applied by the specialised service, their primary cost shall be established on the base of prices given in spare parts catalogues and provided the latter are absent, - prices are used that are analogous to those for car component parts of similar motor vehicles.

Article 24 – Calculation of the Motor Vehicle Value

 (1) The motor vehicle value as on the date of occurrence of the road accident shall be determined by deducting its depreciation value from the cost of a new motor vehicle.

(2) Depreciation of the damaged motor vehicle shall be determined depending on age, intensity of use and state on the date of occurrence of the road accident. Criteria and order of determining depreciation are specified in the normative acts issued by the State Insurance Supervisory Office.

Article 25 - Calculation of Indemnity in Case of Bodily Injury

 (1) In case of bodily injury resulting from road accident insurance indemnity shall be established by the written agreement between the insured, sufferer and Insurer.

(2) In cases specified in paragraph (1) insurance indemnity shall include as follows:

a) Difference between the net income of the sufferer and compensation  received from the social security fund for the period of hospitalisation and sick leave (for working people);

b) An average monthly net income received by the sufferer for his activity at the last working place being certified by the respective documents (for people lacking the working status);

c) The compensation amounting to no less than the cost of the minimum basket of goods;

d) Eventual expenses related to the road accident inclusive expenses for transporting the sufferer, his treatment, recuperation, prosthesis, special nourishment according to physician’s prescription that are confirmed by the respective documents and that are not paid from the funds of compulsory medical insurance in conformity with the valid normative acts;

e) Actually born expenses for care during the period of temporary disability provided it is medically prescribed, though no less than the cost of the minimum basket of goods.

(3) In case of death of the third party determination of the amount of his insurance indemnity shall be exercised through the agreement between the Insured, sufferers’ heirs – in- law or their legal representative and Insurer.

(4) In cases stipulated by paragraph (3) insurance indemnity shall include as follows:

a) The part of salary of the dead sufferer lost by his dependants or those who had the right to receiving from him pension support;

b) Funeral expenses (expenses for purchasing a coffin and gravestone,   car expenses, expenses for embalming and burial), confirmed by the respective documents;

c) Expenses for transporting mortal remnants from the place of death to the place of burial, confirmed by the respective documents.

(5) When the confirming documents mentioned in items b) and c) of paragraph (4) have not been submitted, indemnification shall be made on the base of minimum prices for similar services rendered by the undertaker’s office in the place of burial. 

Article 26 - Calculation of Indemnity in Case of Bodily Injury or Death of Domestic Animals 

 (1) The amount of compensation paid for causing damage or death to domestic animals shall be determined on the base of the cost of the animal in the local market on the date of road accident occurrence. Expenses for curing animals shall be compensated by the Insurer on the base of confirming documents submitted by the animal owner.

(2) The sufferer shall submit the certificate issued by the local primaria (district authorities) confirming the fact of owning the injured or dead animal.

If the injured animal is liable to slaughter and the meat may be sold then when determining the cost of the sold meat shall be taken into account when calculating indemnity.


Article 27 – Calculation of Indemnity in Case of Damage or Loss of Other Property

(1) The amount of indemnity for damage or loss of property non-stipulated by articles 23 and 26 shall be calculated on the base of the cost of repair necessary for its reinstatement, within the limits specified in article 14, paragraph (1) item a).

(2) Technical documentation (calculation of repair work costs and other expenses) submitted by the sufferer is taken into consideration when determining indemnity amount after inspection made by the Insurer.

Article 28 - Claim Payment

 (1) The Insurer shall make payment of insurance indemnity during 10 calendar days since the date of closing the claim file. The Insurer shall accept the application of the sufferer about the mode of indemnity payment which may be made:
a) In cash;
b) By transfer to the bank account;
c) By remittance to the bank account of the specialised repair service.

(2) When there are remarks to the amount of indemnity they are reported to the Insurer within 5 calendar days since the date of closing the claim file; the Insurer shall either settle the sufferer’s claims within 5 days since the date of their receipt or notify about his disagreement. 

(3) When the sufferer does not agree with the Insurer’s decision on the amount of indemnity, the Insurer still shall pay it in the established amount and the sufferer shall have the right to disputing the Insurer’s decision in the court.

(4) In case of determining the amount of the Insurer’s indemnity by the court decision, the Insurer shall pay indemnity without consent of the sufferer on the base of the final court judgement that came into effect.

(5) Indemnity shall be paid by the Insurer directly to the sufferer – physical or juridical person, provided they have not received compensation from the Insured.

(6) Indemnity shall be paid fully or partially to the Insured provided he has proved that he compensated either fully or partially damage and that compensation is not liable to return in conformity with provisions of article 29.

Article 29 - Recovery Procedures

The Insurer has the right to claim recovery from the person guilty in causing damage in cases when:

a) The road accident has been made intentionally;

b) At the moment of occurrence of the road accident the motor vehicle has been driven by the person in the state of alcohol or drug intoxication;

c) The person responsible for occurrence of the road accident lacks the driving license of the appropriate category;

d) The person guilty in the road accident has not been included into the insurance contract concluded between the owner of the motor vehicle and the Insurer of compulsory motor third party liability except the situation specified in Article 8, paragraph (2) item b);

e) The person guilty in causing damage has left the site of road accident occurrence infringing law provisions regulating traffic in national and local roads;

f) The user of the motor vehicle lacked the technical survey certificate on the date of occurrence of the road accident;

g) The road accident has been made on time when the person that committed the malicious crime attempted to elude pursuit.
 
Chapter VII
THE NATIONAL BUREAU OF MOTOR INSURERS


Article 30 - Setting up the National Bureau of Motor Insurers

 (1) The National Bureau of Motor Insurers (hereinafter, the National Bureau) is a professional non-commercial association set up on the base of community of interests and principles of joining motor third party liability insurers as its members and granted with authorities of the National Bureau of the Republic of Moldova in the Council of Bureaux of the International Green Card system.

(2) The National Bureau exercises its activity on the base of its own Statute, the present Law, General Provisions of the Council of Bureaux and normative acts issued by the State Insurance Supervisory Office with this reference. 


(3) The Statute of the National Bureau and modifications and additions made to it shall be approved by the General Meeting of its members and registered in the order established by the legislation in force at preliminary consent of the State Insurance Supervisory Office.

Article 31 - Functions of the National Bureau of Motor Insurers

 (1) The main functions of the National Bureau of Motor Insurers are as follows:

a) Supervision of the mode of implementing by its members the rights and obligations arising from the contracts of external compulsory motor third party liability insurance;

b) Management and use of means from the Fund of Road Victims Protection and the Compensation Fund set up in conformity with the present Law;

c) Settlement and liquidation in conformity with the General Provisions of the Council of Bureaux (either by themselves or through the appointed intermediary) of damage caused as a result of the road accident in the territory of the Republic of Moldova;

d) Representing the Republic of Moldova in external relationships with the Council of Bureaux;

e) Representing foreign insurance enterprises writing international Green Card insurance either directly or through the appointed intermediary with the aim of protecting their rights and interests;

f) Conclusion, signing and cancellation of agreements with other National Bureaux or bilateral agreements with national compensating bureaux that have failed to join to the Agreement between National Bureaux though issue similar insurance documents;  

g) Administration and use together with the State Insurance Supervisory Office the database on compulsory third party liability insurance inclusive data about insurance contracts and insured events;

h) Inclusion into the list of members of the National Bureau or ceasing membership of the Insurers that infringed provisions of the legislation in this field and Bureau acts;

i) Establishing and applying sanctions for failure to respect provisions of the Statute and/or General Provisions of the Council of Bureaux followed by advising about it the State Insurance Supervisory Office;

j) Printing and issuance of the Green Card insurance policies;

k) Other functions stipulated by the present Law and the Statute.

(2)The National Bureau shall:

a) Systematically advise the State Insurance Supervisory Office about joining or termination of the membership, failure of Bureau members to comply with their obligations, about sanctions applied to them, complaints and notifications received from other National Bureaux and about revealed cases of  fraudulence;

b) Develop and submit the annual report on its performance to the State Insurance Supervisory Office within 4 months since the date of completing the financial year.

(3) The National Bureau also exercises other functions stipulated in the General Provisions of the Council of Bureaux.

Article 32 - Membership in the National Bureau of Motor Insurers

(1) The members of the National Bureau of Motor Insurers may become Insurers possessing the licence for writing the motor third party liability insurance by submitting the application and paying the entrance fee in the amount specified by the National Bureau as well as by complying with conditions for joining to the Bureau stipulated by its Statute.

(2) The conditions for membership termination are stipulated in the Statute of the National Bureau. 

(3) The Insurer that becomes the member of the National Bureau possesses the right to the deciding vote at the General Meeting unless otherwise is stipulated by its Statute. 

Article 33 – The Fund for Road Accident Victims Protection

 (1) The Fund for Road Accident Victims Protection is set up for protecting people that suffered as a result of road accidents caused by motor vehicles the owners of which either have failed to conclude contracts of compulsory motor third party liability insurance or have not been identified and/or acquired insurance illegally. 

(2) The Insurers possessing licenses for exercising activity in the field of compulsory motor third party liability insurance shall participate in establishing the fund stipulated in paragraph (1) by making contribution in the amount proportional to the amount of the insurance premium received on this class of insurance. The amount of the minimum fee of the Insurer paid to this fund shall be established by the State Insurance Supervisory Office.

(3) The Fund for Road Accident Victims Protection exercises payment of compensations for bodily injury or death when the motor vehicle or the person guilty in the road accident remained non-identified as well as in cases of damage or loss of property and bodily injury or death if the owner of the motor vehicle that caused the road accident has failed to make the contract of compulsory motor third party liability insurance or the motor vehicle has been acquired illegally.

(4) The National Bureau manages and uses means of the Fund for Road Accident Victims Protection in conformity with provisions of the normative acts issued by the State Insurance Supervisory Office in this field. Founding and administrative expenses as well as those related with the use of funs means shall be covered from its means.

(5) Insurance indemnities shall be paid from the means of the Fund for Road Accident Victims Protection and shall not exceed the limits stipulated in article 14.

(6) The National Bureau is obliged to make separate accounting of contributions and expenses of the National Bureau and store its funds in profitable financial instruments, in credit institutions, in currency market instruments and in governmental securities.

(7) In case of means’ deficit in the Fund for Road Accident Victims Protection due to its obligations’ implementation, the State Insurance Supervisory Office may increase the amount of the contribution during the year.

(8) In order to recover amounts spent from the Fund for Road Accident Victims Protection the National Bureau may claim a regress to the person guilty in causing damage within the limits of paid insurance indemnity.

Article 34 – The Compensation Fund

 (1) The National Bureau of Motor Insurers manages and uses the means of the Fund for Road Accident Victims Protection in strict conformity with the General Provisions of the Council of Bureaux established for guaranteeing:
a) Repayment to foreign National Bureaus amounts of money paid by them as compensation of damage caused to holders of Green Card insurance policies.

b) Compensation of damage caused by false, prohibited or modified Green Card insurance policies;

c) Paying to the sufferers the amount of money in order to compensate damage caused to them in the Republic of Moldova by owners of Green Card insurance policies issued by foreign insurance enterprises.

(2) The sources of financial means of the Compensation Fund are entrance fees, monthly and special contributions of Insurers entitled to writing external compulsory motor third party liability, i.e.

a) The entrance fee serves as a kind of guarantee in case of Insurer’s insolvency; the entrance fee with the interest shall be reaid to the Insurer when terminating his membership in the National Bureau though after liquidating without debt the owned portfolio on Green Card;

b) A monthly contribution is targeted at fulfilling funds tasks in conformity with paragraph (1);

c) A special contribution may be taken from Insurers as loan depending on current requirements of the Fund.

(3) Sources for contributions stipulated in paragraph (2), their amounts and payment terms are established by the State Insurance Supervisory Office.

(4) In cases when the National Bureau uses money of the Compensation Fund for purposes stipulated in paragraph (1), item a), the Insurers on behalf of which they have been used, shall fully compensate these expenses.
 
 (5) The National Bureau is obliged to exercise accounting of incoming funds split by types of contributions (entrance fees, monthly and specialised contributions) and accounting of expenditures from the Compensation Fund as well as to investing Fund means into profitable financial instruments, in credit institutions, in foreign currency market instruments or in governmental securities. 

Article 35 - Property of the National Bureau of Motor Insurers

(1) Property of the National Bureau comprises as follows:
a) Entrance and annual membership fees established by the National Bureau;
b) Monthly contributions to the Fund of Road Accidents’ Victims Protection and interests on them;
c) Monthly contributions to the Compensation Fund and interests on them;
d) Income resulting from activity on claim indemnification;
e) Other legal income sources.

(2) Monthly contributions made by the Insurers to the Fund of Road Accidents’ Victims Protection and Compensation Fund become the property of the National Bureau of Motor Insurers since the date of Insurers joining to the latter and are not liable to repayment in case of terminating membership in the National Bureau.

(3) National Bureau performance shall be compulsorily audited by the external audit.

Article 36 - Management Bodies of the National Bureau of Motor Insurers

General Meeting of the National Bureau members and the Board of Management headed by the chairman are management bodies of the National Bureau.

(2) The exclusive competence of the General Meeting comprises as follows:

a) Approving the Statute and modifications/supplements to it;
b) Election of the members of the Board of Management;
c) Election of the auditors;
d) Approving the annual budget of income and expenses, the annual report and balance sheet of the National Bureau;
e) Admittance to membership and depriving of membership in the National Bureau;
f) Other functions specified in the Statute of the National Bureau.

(3) Authorities of the Board of Management and its chairman are specified in the Statute of the National Bureau.

(4) The General Meeting adopts decisions at simple majority of votes of the National Bureau members.

(5) When deviating from provisions of paragraph (4), decisions of the General Meeting related with aspects of external compulsory motor third party liability insurance are adopted by simple majority of  Insurers’ votes entitled to write external compulsory motor third party liability insurance.

Article 37 - Information About Road Accidents

(1) Police and other public authorities authorised to ascertain and investigate road accidents submit at the request of Insurers, Insureds and/or Sufferers, acts and data about reasons and circumstances of the road accident necessary for determining the amount of damage by the Insurers. 

(2)Upon request the National Bureau provides information about motor vehicles registered in the Republic of Moldova and participated in road accidents outside Moldova, as well as data about motor vehicles registered  outside the Republic of Moldova and participated in road accidents inside Moldova.  

(3) The form and mode of providing the information about the road accident shall be established by the Ministry of Home Affairs together with the National Bureau.

(4) Public authorities, organisations and citizens are obliged to submit free of charge data about road accidents at request of Insurers, Insureds and/or Sufferers.

(5) The Ministry of Home Affairs and the Ministry of Information Development shall submit information necessary for developing and maintenance of the database on compulsory motor third party liability insurance at the request of the State Insurance Supervisory Office.

Article 38 - Insurance Accounting

 (1) Insurers shall make separate daily accounting (both electronic and paper) on compulsory motor third party liability insurance and submit monthly and quarter reports to the State Insurance Supervisory Office in the order and terms established by the latter.

 (2) Insurers shall make daily accounting registry (both electronic and paper) of contracts concluded on internal and external compulsory motor third party liability insurance.

 (3) Insurers are obliged to submit in the established order to the State Insurance Supervisory Office and the National Bureau of Motor Insurers the information regarding every contract of compulsory motor third party liability insurance.

Article 39 - Control of Activity on Compulsory Motor Third Party Liability Insurance

 (1) The Ministry of Home Affairs has been invested with the function of monitoring activity on compulsory third party liability insurance.

(2) Frontiers authorities exercise control on existence of policies of external compulsory third party liability insurance in places of crossing the border of the Republic of Moldova.

(3) The owner and/or user of the motor vehicle shall have the policy of compulsory third party liability insurance while travelling and show it at the request of the workers of the road police and customs authorities.

(4) The owner of the motor vehicle lacking the policy of compulsory third party liability insurance shall, in addition to paying penalty, make the contract of policy of compulsory third party liability insurance.

(5) When registering and making changes in the technical passport of the motor vehicle and while passing the technical survey it is compulsorily necessary to prove existence of compulsory motor third party liability insurance in conformity with the present Law.  

(6) Driving the motor vehicle without the policy of compulsory third party liability insurance is punishable in compliance with the valid law on administrative violations.

Chapter VIII
FINAL AND TRANSITIONAL PROVISIONS


Article 40 - Transitional Provisions

(1) The contracts of compulsory motor third party liability insurance concluded before coming into effect of the present Law shall be considered valid till the specified expiry date.

(2) Insurers that on the date of entering in force the present Law possess the licence for writing compulsory third party liability insurance and the licence for property insurance with the right of writing international Green Card insurance, shall put to order their activity to comply with provisions of article 5 within 12 months since the date of coming this Law into effect.

(3) On the date of coming this Law into effect the means of the Fund for Assisting Road Accident Victims and Green Card Fund shall be transferred respectively to the Fund for Road Accident Victims Protection and the Compensation Fund.

(4) Excess of funds’ budgets stipulated in articles 33 and 34, existing on the date of closing the financial statement for the certain period shall be moved to the subsequent financial reporting period and used for similar purposes.

(5) Upon expiry of five years since coming this Law into effect Insurers will establish in agreement with Insureds the amount of premiums on compulsory motor third party liability insurance in conformity with the methodology approved by the Parliament and with application of bonus – malus system developed by the State Insurance Supervisory Office.

(6) Upon expiry of the term specified in paragraph (5), the sum insured per one insured event in contracts of compulsory motor third party liability insurance will equal minimum to:

 a) MDL1,000,000 per one sufferer or MDL5,000,000 independent on the number of people suffered from bodily injuries or death;
b) MDL1,000, 000 independent on the number of sufferers in case of property damage.

(7) During the period the period specified in article 57, paragraph (4) a) of the Law on Insurance prices for car components or parts liable to replacement in damaged motor vehicles are established as an exception from provisions of article 23, paragraphs (6) and (7) of the present Law, taking into account degree of their depreciation determined in conformity with normative acts issued by the State Insurance Supervisory Office.

Article 41 - Coming into force/ Abrogation/ Government Duties

(1) The present Law shall come into effect in six months since the date of its publishing in the bulletin “Monitorul Oficial” of the Republic of Moldova.

(2) For settlements located in the left bank of the river Dniester provisions of article 5, paragraph (1), item a) will be applied only after settling the Transnistran issue.

(3) Chapter IY of the Law on Insurance No. 1508-XII as of 15 June 1993 shall be abrogated since the date of entering this Law in force.

 (4) The Government shall within three months shall:

- Submit proposals regarding bringing the valid legislation into accord with the present Law;

- Bring its normative acts in compliance with the present Law.

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