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“Between 2015 and 2019, the average number of decisions to pay compensation from GF was relatively constant – 1221 cases per year. In the first nine months of this year, 797 decisions were made. The average amount of compensation per RTA paid from GF is increasing year by year. “If in 2015 they were 1178 euros, then last year – 1369 euros; in the first nine months of this year, already 1662 euros,” says Jānis Abāšins, Chairman of the Board of LTAB.
In the last five years, the largest indemnity for an accident caused by an uninsured vehicle is 52 thousand euros. The second largest RTA caused by the driver of a vehicle without MTPL, the amount of compensation is 49 thousand euros. The third largest amount of losses is 33 thousand euros for an accident caused without insurance. All the mentioned RTAs took place in 2018. “According to the LTAB experience, such losses caused by unscrupulous car owners for many years or even a lifetime cause significant financial and legal problems for these people,” explains Abashin.
GF was established in 1997 and its primary task is to ensure the stability of the MTPL industry in the country. The GF serves as a guarantor of protection and assurance that every victim of a RTA will receive the statutory compensation. GF funds consist of one-time contributions made by insurers, regular monthly deductions from MTPL premiums, additional contributions made by insurers, funds recovered by LTAB recourse for losses caused as a result of RTA, as well as income from storage and investment of fund resources.
Last year, GF managed to recover EUR 1,185,866 from vehicle owners who caused RTAs with uninsured vehicles. 47% of the recovered amount has been reimbursed voluntarily by the causes of RTA, incl. by concluding an agreement on the refund of funds in a certain period of time, in 23.9% of cases the losses have been recovered with the help of sworn bailiffs, but in 0.2% of cases the cases have been assigned.
Abashin recalls that it is a mistake to assume that the recovery of GF funds is limited to recent RTAs. “Any car owner who engages in traffic without a MTPL and causes a RTA will in any case have to reimburse the damage caused to other persons out of pocket immediately or over a longer period of time, which means that the basic amount will also include case administration or recovery and court costs. Therefore, make sure that MTPL is always purchased on time, which is the easiest way to avoid additional problems, “informs LTAB Chairman of the Board.
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