Until now, the MTPL policy operated in the EU and European Economic Area countries, but other Green Card Convention countries, such as Russia, Belarus, Turkey or Morocco, had to purchase a Green Card valid in the countries to be visited.
If Great Britain leaves the EU without an agreement, then there will no longer be the United Kingdom in the territory of Latvia’s MTPL policy, and as of January 1, 2021, both road hauliers and individuals traveling there with MTPL policies purchased earlier will suddenly be left without compulsory insurance coverage, with all its consequences.
Considering that until now the MTPL policies were purchased in the territory of the United Kingdom, and this has been included in the policy premium calculations, then in the opinion of PABA (Latvian Association of Professional Insurance Brokers) it is necessary to ensure in a fair way that MTPL policy holders continue to receive insurance coverage at the previous territorial level even after the Brexit agreement.
Technically, this is easy to do – by issuing a Green Card of the same duration, which only works in one country, the United Kingdom. The question is whether insurance companies will be reluctant to charge disproportionately high premiums for this.
In order to ensure a fair solution, and policyholders would continue to receive MTPL insurance indemnity in the amount for which they have paid the premium, a binding regulation would be needed, most likely in the form of Cabinet regulations, which stipulates that all MTPL policies issued before 30.11 .2020 insurers are obliged to provide insurance coverage in the United Kingdom free of charge until the end of the MTPL policy. It would also protect motorists who will be in the UK after Brexit with their cars from unpleasant adventures.
On the other hand, for those who are still planning to enter into a MTPL contract and possibly travel to the United Kingdom by road, PABA recommends that in addition to the MTPL policy, you also purchase a Green Card with coverage in the United Kingdom. In many EU countries, it is standard practice to receive a Green Card at no extra cost.
However, knowing the usual practice of Latvian insurers to charge an additional fee for Green Cards, the most desirable solution would still be binding regulations that would ensure adequate protection of policyholders in this matter.
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