New Motor Insurance Act as of 1.10.2014

The Ministry of Finance hereby reminds all those interested that as of tomorrow a new Motor Insurance Act will enter into force. The Act places motor insurance into the contemporary legal system, elaborates on and amends a number of requirements and definitions, and, all in all, renders it more convenient for the customer to obtain the relevant insurance.

The new law transforms the motor insurance contract into a regular insurance contract. The contract can be concluded with a term of no more than one year and, for the contractual period, a policy certifying the applicability of insurance will be issued. When required, a contract that is automatically extended can be concluded.

The most significant amendment pertains to the injured party’s right to claim compensation for motor insurance damage from their insurer, providing the customer with the opportunity to arrange the relevant matters through their usual service channels.
This principle will take effect on January 1, 2015. So as to receive compensation, the customer will have a choice of whether to approach their own insurer or the insurer of the person that caused the damage. Damage will be compensated by the insurer whom the customer approached. Insurers will clear their accounts amongst themselves later.
Old motor insurance contracts will be binding until expiry of the insurance period noted on the policy and such old contracts need not be amended once the new Act takes effect. Claims that arose prior to the new Act taking effect will be processed pursuant to the old Act. 
The new Act will increase the sums insured: the property insurance related limit of 1 million will be increased to 1.2 million euros, and the limit related to bodily injury or damage caused to someone’s health will be increased from the current 5 million to 5.6 million euros. 
Attention is continually paid to uninsured vehicles. Vehicles entered in the traffic register may remain uninsured for no more than 12 months, given that the vehicle will not be used in traffic.
Vehicles that remain uninsured for a longer period of time are subject to the Estonian Traffic Insurance Foundation’s automatic insurance cover instead of the Foundation’s heightened insurance premium system. This will lessen the percentage of uninsured vehicles in traffic and helps collect means to compensate damage caused by uninsured vehicles. 
For such vehicles, the owner will have to pay the Estonian Traffic Insurance Foundation insurance premiums and should an accident occur, excess will be imposed.
More information about the new Act is available in Estonian at
Source: Estonian Ministry of Finance

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