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Motor Insurance Act¹

Passed 26.03.2014
RT I, 11.04.2014, 1
Entry into force 01.10.2014

Amended by the following legal instruments (show)

Chapter 1 General Provisions  

§ 1.  Scope of regulation and application of Act

  [RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (1) This Act regulates compulsory insurance of liability arising from causing damage in the course of using a vehicle as a means of transport (hereinafter compulsory motor insurance), compulsory insurance applicable to an uninsured vehicle (hereinafter automatic motor insurance) and liability for driving an uninsured vehicle.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (1¹) This Act applies to any use of a vehicle as a means of transport, irrespective of the terrain on which the vehicle is used and whether the vehicle stands or moves.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (1²) This Act does not apply if the vehicle was used for purposes other than as a means of transport at the time the event occurred, including:
 1) as a means of committing an act of terrorism;
 2) as sports equipment in a competition, training, schooling or another similar event if the road or area on which the vehicle is used is closed to pedestrians, spectators and other vehicles, taking into account the provisions of subsection 45 (4) of this Act;
 3) as utility equipment and the risk inherent in its use as utility equipment materialised.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (2) Compulsory motor insurance is regulated by the provisions of the Law of Obligations Act and automatic motor insurance is regulated by the provisions of the Administrative Procedure Act, taking into account the specifications of this Act.

§ 2.  Imperativeness of provisions

  An agreement deviating from this Act or the Law of Obligations Act to the detriment of the policyholder, insured person or injured party is ineffective, unless the permissibility of the deviating agreement is provided by law.

§ 3.  Insurance obligation

 (1) For the purposes of this Act, ‘insurance obligation’ means the obligation to conclude a compulsory motor insurance contract (hereinafter contract) for the purpose of insuring, in accordance with the procedure and to the extent provided by this Act, the liability arising from damage caused to a third party by the use of a vehicle.

 (2) A vehicle subject to the insurance obligation, which does not have compulsory motor insurance or automatic motor insurance (hereinafter jointly motor insurance), must not be engaged in traffic.

 (3) A driver whose vehicle is normally based abroad or whose vehicle is not subject to registration in the motor register must carry a policy, green card or another document certifying the existence of a compulsory contract, which may also be submitted in electronic form, whenever the driver engages in traffic.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

§ 3¹.  Vehicle

 (1) For the purposes of this Act, a vehicle is a land vehicle propelled solely by an engine, as well as its trailer.

 (2) For the purposes of this Act, a vehicle is not:
 1) a wheelchair vehicle specially designed for a person with a physical disability;
 2) a rail vehicle and another rail-borne vehicle, except a tram.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 4.  Vehicle subject to insurance obligation

 (1) A contract must be concluded with regard to the following vehicles which are normally based in Estonia:
 1) a vehicle, including an off-road vehicle, that has been registered or must be registered in the motor register established on the basis of the Road Traffic Act (hereinafter motor register);
 2) a tram and a trolleybus;
 3) a vehicle having a removable national registration plate issued in Estonia;
 4) a vehicle with a customs plate issued in Estonia;
 5) another vehicle the design speed of which exceeds 25 kilometres per hour, or a vehicle the design speed of which exceeds 14 kilometres per hour and the mass of which, with full equipment and without cargo and driver, exceeds 25 kilograms;
 6) a trailer of a vehicle specified in clauses 1–5 of this subsection.

 (2) A contract must also be concluded with regard to a vehicle normally based in a foreign country (hereinafter third country) whereby the liability arising from damage caused by the use thereof is not insured. A third country is not a contracting state of the European Economic Area or the Swiss Confederation.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 5.  Vehicle exempt from insurance obligation

  There is no obligation to conclude a contract with regard to the following vehicles subject to the insurance obligation:
 1) a vehicle that has been temporarily deleted from the motor register or the register entry of which has been suspended in accordance with the procedure set out in the Road Traffic Act, unless otherwise provided by this Act;
 2) such an off-road vehicle, vintage vehicle and racing vehicle that is not used in traffic;
 3) a vehicle in the possession of the Defence Forces, the Estonian Internal Security Service, the Defence League and the Police and Border Guard Board whose owner or authorised user is the aforementioned institution, during the use of the vehicle in Estonia;
 4) a vehicle not registered in the motor register and used outside road traffic only in the territory of an aerodrome, port or registered immovable closed for public traffic or in any other area closed for public traffic;
 5) a vehicle subject to registration in the motor register, which cannot be registered due to its non-compliance with requirements and which is therefore not permitted to be used in traffic.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 6.  Specifications of insurance obligation

 (1) There is no insurance obligation within 12 months following the termination of the contract, provided that during the period the vehicle is not engaged in traffic or otherwise used in a manner that can cause an insured event. During the aforementioned term the vehicle is not subject to the automatic motor insurance.

 (2) The specifications of the insurance obligation provided in subsection 1 of this section do not apply to the vehicles and off-road vehicles specified in clauses 3, 4 and 5 of subsection 1 and in subsection 2 of § 4 of this Act and to their trailers.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (3) The insurance obligation arises before the expiry of the time limit specified in subsection 1 of this section where:
 1) the vehicle is deleted from the motor register, including temporarily;
 2) the person subject to the insurance obligation changes in the motor register.
[RT I, 10.01.2019, 1 – entry into force 20.01.2019]

 (4) The fund sends the person subject to the insurance obligation the information explaining the insurance obligation, including the specifications of motor insurance provided in this section, electronically, where necessary and possible before and within a reasonable time after the implementation of the motor insurance specifications.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (5) The information specified in subsection 4 of this section has an informative meaning and the provisions of the Administrative Procedure Act do not apply to its delivery. The implementation of the specifications of motor insurance does not depend on whether this information has been sent or received.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 7.  Person subject to insurance obligation

 (1) The person entered into the motor register as the owner of a vehicle is subject to the insurance obligation.

 (2) If a vehicle registered in the motor register has an authorised user, the person entered into the motor register as the authorised user will be subject to the insurance obligation on behalf of the person specified in subsection 1 of this section.

 (3) In other events the owner of the vehicle is responsible for the insurance obligation as of the emergence of the right of ownership.

§ 8.  Insured event and law applicable to insured event

 (1) An insured event means causing damage to a third party with a vehicle subject to the insurance obligation in the course of using the vehicle as a means of transport.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (2) [Repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (3) Unless otherwise provided by Regulation (EC) No. 864/2007 of the European Parliament and of the Council on the law applicable to non-contractual obligations (OJ L 199, 11.7.2007, p. 40–49), the compensation for unlawfully caused damage is regulated by the law of the state where the insured event occurred.

§ 9.  Territory where vehicle is normally based

 (1) A vehicle is normally based in the state into whose motor register the vehicle has been entered temporarily or permanently. If registration is not required, the vehicle is normally based in the state where the possessor of the vehicle is domiciled.

 (2) If an insured event is caused by a vehicle that does not have a registration plate or that has a registration plate that does not belong to the vehicle, the vehicle will be deemed to be normally based in the state where the insured event occurred.

 (3) During the temporary deletion of a vehicle from the motor register as well as during the suspension of a register entry in the motor register, the national registration plate issued to the vehicle is deemed to be a registration plate not belonging to the vehicle for the purposes of this Act.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

§ 10.  Motor Insurance Fund

 (1) The Motor Insurance Fund (hereinafter fund) is a non-profit association that performs the functions arising from this Act and the administrative contract concluded with the minister in charge of the policy sector.

 (2) The fund is a member of the Council of Bureaux and the Estonian national bureau of the green card.

§ 11.  Verification of performance of insurance obligation

 (1) The fund regularly and systemically verifies the performance of the insurance obligation by comparing the data of the motor register and the motor insurance register for the purpose of implementing the automatic motor insurance set out in Chapter 5 of this Act.

 (2) In the case of vehicles subject to the insurance obligation and engaged in traffic, including vehicles crossing the state border or the temporary border line, the existence of motor insurance is verified by a police officer and an assistant police officer.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (3) The insurance obligation of a vehicle normally based in a contracting state of the European Economic Area or the Swiss Confederation (hereinafter contracting state) is deemed as performed if the scope thereof complies with the requirements of the contracting state where the vehicle is normally based.

Chapter 2 Motor Insurance Contract  

§ 12.  Contract

  Under a contract, one person (hereinafter insurer) agrees to, on behalf of the possessor of a vehicle (hereinafter insured person), compensate, to the extent and on the conditions provided for in this Act, the injured party for damage caused to the injured party as a result of an insured event. The other party (hereinafter policyholder) agrees to pay the insurer regular insurance premium.

§ 13.  Conclusion of contract

 (1) The contract may be concluded as a policyholder by any person who has an insurable interest.

 (2) The insurer is required to conclude a contract if the policyholder is a person subject to the insurance obligation or if the policyholder has an insurable interest in insuring a vehicle.

 (3) A contract with regard to a vehicle specified in subsection 2 of § 4 of this Act may be concluded by the fund or an insurer who has an agreement with the fund.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (4) In the case of a vehicle specified in subsection 2 of § 4 of this Act, the fund allows for the conclusion of a contract at least at the border crossing points specified in the administrative contract concluded with the minister in charge of the policy sector.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (5) The insurer may conclude a joint contract in respect of vehicles authorised to use a removable national registration plate issued in Estonia. The insurer is only required to compensate for damage if the vehicle by the use of which the damage was caused bore a removable registration plate and its use on the vehicle at the time of occurrence of the insured event has been registered in accordance with the procedure provided for in legislation.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

§ 13¹.  Taking into account claims-history statement

 (1) If insurance premiums are calculated or discounts are made taking into account the policyholder’s claims-history statement specified in subsection 4 of § 76 of this Act, the insurer may not apply the terms and conditions that treat policyholders unequally due to the claims-history statement issued in another contracting state or due to their citizenship or previous residence.

 (2) The insurer publishes on its website the general principles for taking into account previous damage on the basis of the claims-history statement specified in subsection 4 of § 76 of this Act upon calculating insurance premiums.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

§ 14.  Restrictions on conclusion of contract

 (1) Multiple contracts with an overlapping insurance term cannot be concluded with regard to a vehicle. If multiple contracts with an overlapping insurance term have been concluded, the contract that was concluded later will be ineffective to the extent that it overlaps with the contract that was concluded earlier.

 (2) The insurer has the right to refuse to conclude a contract if the vehicle subject to registration has not been registered in accordance with the prescribed procedure.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

 (3) The insurer does not have the right to refuse to conclude a contract with an insurance period of up to 30 days with regard to a vehicle whose registration entry has been suspended in accordance with the procedure provided for in subsection 8¹ of § 77 of the Road Traffic Act. The contractual insurance cover with regard to the insured person is effective on the condition that the vehicle is used only by way of exception before passing the inspection of compliance with the technical requirements, following the requirements of subsection 7⁴ of § 73 of the Road Traffic Act.
[RT I, 04.07.2017, 6 – entry into force 01.09.2017]

 (3¹) The insurer does not have the right to refuse to conclude a contract with regard to a vehicle that has been temporarily deleted from the motor register before the expiry of the term for temporary deletion of the vehicle. The contract does not enter into force if the vehicle has not been deemed included in the motor register by the start of the insurance period specified therein.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (4) The insurer may conclude a contract with regard to a vehicle that has been acquired in a contracting state and is to be delivered to Estonia before the vehicle has been registered in the motor register, provided that no more than 30 calendar days have passed from the commencement of the delivery of the vehicle to Estonia. The commencement of the delivery of the vehicle to Estonia is calculated as of the issue of a customs plate to the vehicle. If no customs plate is issued to the vehicle, the commencement of the delivery of the vehicle to Estonia will be calculated as of the time when the vehicle was handed over to the transferee.

 (5) The insurer may also conclude a contract under the terms and conditions provided for in subsection 4 of this section with regard to a vehicle that is to be delivered to Estonia before the vehicle has been registered in the motor register if the residence of the policyholder who is a natural person or the registered office of the policyholder who is a legal person or its place of business related to the insurance contract is in Estonia as well as if the person settles in Estonia.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

§ 15.  Territorial validity of insurance cover

 (1) The insurance cover provided under a contract is effective in all the contracting states without the parties having to agree on it separately. The insurance cover is effective in a third country if the country has been specified in the policy certifying the conclusion of a contract or on the green card.

 (2) The insurer will not charge any additional insurance premium or any other fee for the insurance cover effective in another contracting state. The insurer has the right to charge an additional insurance premium or another fee for the insurance cover effective in a third country.

§ 16.  Restrictions on conditions of contract

 (1) A contract may be concluded for a term of up to one year.

 (2) An agreement that provides for the application of excess to a policyholder who is a consumer is ineffective, unless this Act provides otherwise.

 (3) An agreement according to which the insurer is not required to compensate for damage and the policyholder is not required to pay the insurance premium during a certain period during the term of validity of a contract is ineffective.

 (4) An agreement on the retroactive commencement or termination of the insurance cover is ineffective.

 (5) The provisions of § 432 of the Law of Obligations Act regarding the consequences of breach of the notification obligation are not applicable to a contract.

 (6) The provisions of § 445 of the Law of Obligations Act regarding the consequences of increasing the likelihood of an underwriting risk are not applicable to a contract.

 (7) The provisions of § 493 of the Law of Obligations Act are not applicable to a contract.

§ 17.  Policy

 (1) The insurer will issue to the policyholder a policy in a form that can be reproduced in writing. At the request of the insured person using the vehicle, the insurer will issue a copy of the policy also to the insured person in a form that can be reproduced in writing.

 (2) If the contract is renewed automatically for the next insurance term in accordance with the procedure established in this Act, the insurer will issue a new policy by the start of the insurance term.

§ 18.  Green card

 (1) A green card is a special type of policy, which certifies that the insurance cover is effective, besides Estonia and the contracting states, also in the third country specified on the green card.

 (2) At the request of the policyholder, the insurer will issue a green card to the policyholder or the insured person indicated by the policyholder.

 (3) Subsection 2 of § 434 of the Law of Obligation Act is not applicable to the issue of a green card.

§ 19.  Payment of insurance premium and late payment

 (1) The provisions of §§ 457 and 458 of the Law of Obligations Act are applicable to the payment of insurance premium, taking into account the specifications arising from this section.

 (2) The exemption of the insurer from an obligation specified in subsection 2 of § 457 of the Law of Obligations Act is not applicable if the policyholder failed to make the first insurance premium payment and the insured event occurred within 14 calendar days after the conclusion of the contract.

 (3) Subsection 4 of § 458 of the Law of Obligations Act is not applicable to the payment of insurance premium.

§ 20.  Renewal of contract

 (1) If an automatically renewable contract is concluded, the contract will renew for the next insurance term only if no later than two working days before the expiry of the insurance term the policyholder does not express a different intention or does not conclude a contract with another insurer.

 (2) In the event of an agreement on the renewal of the contract, the insurance distributor is required, at least 14 calendar days before the expiry of the insurance period, to inform the policyholder about the size of the insurance premium which the policyholder must pay in the event of automatic renewal of the contract. This notification is accompanied by information on the conditions for automatic renewal of the contract provided in subsection 1 of this section and on the insurance premium for the previous period by comparison. The information specified in the previous sentence and the communication thereof have no legal effect on the renewal of the contract or on the insurance cover. The insurer’s offer may not be conditional.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (2¹) If an automatically renewable contract has been concluded through an insurance broker, the broker sends the policyholder additional offers for the conclusion of an insurance contract for a new insurance period within the term provided in subsection 2 of this section.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (3) In the event of an automatically renewable contract, the insurance premium is deemed to be the second or following insurance premium.

 (4) The insurer is prohibited to offer nothing but automatically renewable contracts.

§ 21.  Grounds for termination of contract and transfer of contract

 (1) The contract will terminate:
 1) upon deletion of the vehicle from the motor register, including upon temporary deletion from the motor register;
 2) as of the time when 30 calendar days have passed from the delivery of the vehicle to the transferee in a contracting state and the vehicle has not been registered in the Estonian motor register or as of the registration of such vehicle in the Estonian motor register;
 3) as of the expiry of the validity of the customs plate if the contract was concluded for the purpose of insuring the liability arising from damage caused by the use of the vehicle specified in clause 4 of subsection 1 of § 4 of this Act;
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 4) upon termination of or withdrawal from the contract;
 5) in another event provided by law.

 (2) The termination of or withdrawal from the contract is permitted only in the events provided for in this Act or the Law of Obligations Act.

 (3) If an insured event occurs before the termination of or withdrawal from the contract, the insurer must perform its contractual obligation to compensate for damage.

 (4) In the case of vehicles registered in the motor register, the rights and obligations of the policyholder under the contract that has entered into force will transfer to a person subject to the insurance obligation as of making an entry regarding the person in the motor register. The provisions of §§ 495–498 and § 524 of the Law of Obligations Act are applied, respectively.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 22.  Extraordinary termination of contract

  [Repealed – RT I, 29.06.2024, 2 – entry into force 15.07.2024]

§ 22¹.  Notification of insurance obligation

 (1) The insurance distributor adds information about the insurance obligation and the consequences of failure to perform it to the insurance offer to be submitted to the policyholder.

 (2) The distributor of a valid automatically non-renewable contract with an insurance period of at least 30 days provides, at a reasonable time before the end of the insurance period, the policyholder with the information specified in subsection 1 of this section, unless, to the knowledge of the distributor of the valid contract, the need for the policyholder to conclude a contract for the next period has ceased to exist.

 (3) The information specified in this section has an informative meaning and the validity of the insurance cover does not depend on whether it has been sent or received.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

Chapter 3 Damage to Be Compensated  

§ 23.  Legal grounds for compensation of damage

 (1) If an insured event occurs, the injured party may file a claim for damages against the insurer if the insured person is liable towards the injured party.
 1) [repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 2) [repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 3) [repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (2) [Repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (3) The insurer must explain to the injured party, at the request of the injured party, the principles of compensation for damage and the methodology used by the insurer for calculating the compensation for damage.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 24.  Extent of damage to be compensated

  On behalf of the insured person, the insurer will compensate damage caused to the injured party as a result of an insured event to the extent provided in Chapter 7 of the Law of Obligations Act, taking into account the specifications provided in this Act. The provisions of this Chapter do not restrict the right of the injured party to file, on a ground provided in another Act, a claim against the person who caused the damage.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 25.  Sum insured

 (1) Unless a higher sum insured has been agreed in the contract, the sum insured per insured event is, regardless of the number of injured parties, 1,300,000 euros in the event of destruction or damage of a thing and 6,450,000 euros in the event of causing death, harming health or causing an injury.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

 (2) If there is more than one injured party per insured event and the total amount of claims filed against the insurer or the total amount of the insurance compensation initially estimated by the insurer exceeds the sum insured specified in subsection 1 of this section, the insurer will divide the insurance compensation between the injured parties in proportion to the amount of damage of each injured party.

 (3) Compensation for non-proprietary damage is included in the sum insured provided for in subsection 1 of this section.

 (4) On the basis of Article 9(2) of Directive 2009/103/EC of the European Parliament and of the Council relating to insurance against civil liability in respect of the use of motor vehicles, and the enforcement of the obligation to insure against such liability (OJ L 263, 7.10.2009, p. 11–31) and on the basis of the delegated act of the European Commission adopted in accordance with Article 28b of the aforementioned Directive, the sum insured as specified in subsection 1 of this section is indexed every five years to the change in the harmonised index of consumer prices. As of the date provided for in the relevant act of the European Commission, the sum insured is deemed to be the sum insured received as a result of indexation according to the latest indexation.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

 (5) The fund publishes the sums insured in force on its website. If the sum insured changes in accordance with the procedure provided for in subsection 4 of this section, the fund will publish the sum insured in force along with a reference to the relevant act of the European Commission.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

§ 26.  Damage arising from harming or destruction of thing

 (1) In the event of the harming or destruction of a thing, the provisions of subsections 1–3 of § 132 of the Law of Obligations Act apply, taking into account the specifications arising from this section.

 (2) In the event of harming a vehicle, the injured party has the right to choose the repair undertaking that is to restore and repair the vehicle. In such an event the injured party must submit to the insurer a calculation drawn up by the restore and repair undertaking for the purpose of identifying the scope of performance of the obligation. The insurer’s compensation obligation will be limited to reasonable expenses of restoration of the condition preceding the insured event. At the request of the injured party, the insurer will issue to the restore and repair undertaking a letter of guarantee of payment of the cost of the restoration and repairs for the injured party to the extent and on the conditions set out in the letter of guarantee.

 (3) At the request of the injured party, the insurer must assist in organising the restoration and repairs of the vehicle.

 (4) The payment of the insurance compensation in cash is permitted only if the vehicle cannot be restored, the restoration and repairs of the vehicle are unreasonable or if the parties have agreement that the insurance compensation will be paid out in cash.

 (5) If the insurer identifies that the injured party has the right to deduct value added tax added to the cost of restoration or replacement of the damaged thing from value added tax calculated on its taxable sales, the insurer will have the right to take it into account upon compensation of damage.

 (6) If the injured party who is entitled to partially or fully deduct input value added tax from its taxable sales submits to the insurer a request for the compensation of damage inclusive of value added tax, the insurer must compensate the damage along with the value added tax portion.

 (7) In the event specified in subsection 6 of this section the insurer will obtain the right of recourse regarding the portion of the compensation that the injured party received or should have received on or set off against value added tax accounted on its taxable sales.

 (8) If the insurer has fully compensated the injured party for the value of a thing preceding the insured event, the right of ownership of the thing will transfer to the insurer. If the injured party does not hand the possession of the thing over to the insurer, the insurer will have the right to reduce the insurance compensation to be paid to the extent of the value of the compensated thing following the insured event.

 (9) [Repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 27.  Principles of payment of maintenance compensation

  [Repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 28.  Principles of payment of compensation for incapacity for work

 (1) The insurer will compensate the injured party for the income subject to social tax, which the injured party is deprived of due to having partial work ability or no work ability or temporary incapacity for work following the insured event, taking into account the extent of reduction of the person’s capacity for work (hereinafter compensation for incapacity for work). It is presumed that in the event of temporary loss of the work ability the injured party’s work ability is completely lost.
[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

 (2) [Repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (3) The insurer will compensate the employer of the injured party for the sickness benefit paid out on the basis of subsection 1 of § 12 of the Occupational Health and Safety Act.

 (4) The compensation for incapacity for work may be paid retroactively in a lump sum in the event of temporary incapacity for work.

 (5) In the event of partial work ability or no work ability, the following persons are entitled to compensation for incapacity for work:
 1) a person specified in § 2 of the Work Ability Allowance Act, if it has been identified in accordance with the procedure established in the Work Ability Allowance Act that they have partial work ability or no work ability;
 2) another injured party if it has been identified in accordance with the procedure established in this Act that they have partial work ability or no work ability.
[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

 (6) An injured party having partial work ability identified on the basis of the Work Ability Allowance Act is entitled to the compensation for incapacity for work if they meet at least one criterion set out in subsection 1 of § 12 of the Work Ability Allowance Act.
[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

 (7) If the injured party is not entitled to the assessment of work ability on the basis of the Work Ability Allowance Act, the insurer will assess the scope of work ability within the framework of identifying the existence and scope of the obligation to pay compensation for incapacity for work, involving, where necessary, a person who has completed medical training in identifying the scope of the reduction of the work ability.
[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

§ 28¹.  Determining scope of permanent reduction of work ability

 (1) Taking into account the state of health, the insurer identifies a reduction of the overall work ability of the person on a scale of 10-100 per cent and a reduction of the work ability caused separately by an insured event on a scale of 10-100 per cent, involving, where necessary, a person who has completed medical training in identifying the scope of the reduction of the work ability. A reduction of the overall work ability starting from 40 per cent is deemed as partially impeding working.

 (2) The insurer identifies a 100 per cent reduction of the work ability of the injured party if:
 1) following an assessment of the work ability by the Estonian Unemployment Insurance Fund it has been established that the injured party has no work ability, or
 2) the Estonian Unemployment Insurance Fund does not assess the work ability of the injured party and the injured party is not able to work, given their status of health and the limitations of operation and participation arising therefrom as well as the prognosis and expected duration thereof.

 (3) The insurer identifies a 40-90 per cent reduction of the work ability of the injured party if:
 1) following an assessment of the work ability by the Estonian Unemployment Insurance Fund it has been established that the injured party has partial work ability, or
 2) the Estonian Unemployment Insurance Fund does not assess the work ability of the injured party and the injured party is partially unable to work, given their status of health and the limitations of operation and participation arising therefrom as well as the prognosis and expected duration thereof.

 (4) In the events specified in clause 2 of subsection 2 and clause 2 of subsection 3 of this section, the insurer will apply the list of work ability assessment criteria and conditions precluding work ability, which has been established on the basis of subsection 4 of § 5 and subsection 3 of § 6 of the Work Ability Allowance Act.

 (5) The percentages expressing the scope of reduction of the overall work ability and the scope of reduction of the work ability due to an insured event and the procedure for determining the percentage will be established by a regulation of the minister in charge of the policy sector.

 (6) To determine the percentage of reduction of the overall work ability and of reduction of the work ability due to an insured event, the injured party must undergo a medical examination at the request of the insurer. If the injured party’s work ability decreases after the reduction of the compensation for incapacity for work, the injured party has the right to demand their medical examination. The costs of the medical examination will be borne by the insurer.
[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

§ 29.  Calculation of compensation for incapacity for work

  [RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (1) The basis for calculating the compensation for incapacity for work (hereinafter in this section compensation) is the net income of the injured party per calendar day, which is calculated by subtracting income tax and the unemployment insurance premium from the injured party’s income that is subject to social tax and thereafter the result is divided into the number of calendar days in the period specified in subsections 2–7 of this section (hereinafter net income). The calculation does not include the calendar days when the injured party was temporarily incapacitated for work.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (2) If the injured party received income subject to social tax at the time when the insured event occurred, the net income will be calculated on the basis of the period preceding the insured event, during which period the injured party received, without interruption, income subject to social tax, but no more than 12 calendar months.

 (3) If the injured party did not receive income subject to social tax at the time when the insured event occurred, the net income will be calculated on the basis of the income subject to social tax in the 12 calendar months immediately preceding the insured event.

 (4) If the injured party operated as a self-employed person at the time when the insured event occurred, the net income will be calculated on the basis of the income declared in the income tax returns of the two years immediately preceding the insured event.

 (5) If the injured party earned income abroad in the 12 months immediately preceding the insured event, such a portion of the income earned abroad, which would be subject to social tax in Estonia when earned in Estonia, will be used as the basis for calculating the net income.

 (6) If the injured party was a conscript at the time when the insured event occurred, the net income will be calculated on the basis of the income subject to social tax, which was earned in the 12 months immediately preceding the start of the conscription of the injured party.

 (7) If the injured party was on a parental leave at the time when the insured event occurred, the net income will be calculated on the basis of the income subject to social tax, which was earned in the 12 months immediately preceding the start of the parental leave of the injured party.
[RT I, 31.03.2022, 1 – entry into force 01.04.2022]

 (8) [Repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (9) Upon calculation of the compensation, the net income of the injured party is indexed, taking into account the change in the average gross salary.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (10) The compensation per calendar month is the multiple of the net income per calendar month indexed in accordance with subsection 9 of this section and 30, less the total sum of the compensation granted to the injured party per calendar month under other compulsory insurance or on the basis of law.

 (11) Upon calculation of compensation, the scope of liability of the insurer is taken into account.

 (12) In the case of compensation for incapacity for work, the injured party’s income subject to social tax is calculated for the period with regard to which the compensation for incapacity for work has been calculated.

 (13) The compensation will be recalculated once the injured party becomes entitled to or would have been entitled to old-age pension. Upon recalculation of the compensation, 60 per cent of the net income of the injured party before the insured event will be taken into account.
[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

§ 30.  Amendment of compensation for incapacity for work

  [RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (1) The insurer will recalculate the compensation for incapacity for work once the circumstances serving as the basis for calculation of the compensation change or new circumstance that must be taken into account upon calculating the compensation become evident. If the insurer recalculates the compensation, the net income will not be reindexed.

 (2) If as a result of the recalculation it becomes evident that the insurer has paid the compensation for incapacity for work in a smaller sum than it should have, given the changed or new circumstances, the missing portion of the compensation will be paid out along with the compensation payable for the next period.

 (3) If upon recalculation it becomes evident that the insurer has paid the compensation for incapacity for work in a higher sum than it should have, given the changed or new circumstances, the excessive portion of the compensation will be deducted from the compensation payable for the next period.

 (4) [Repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (5) No compensation for incapacity for work is paid to the injured party for the period of suspension of payment of the work ability allowance under § 18 of the Work Ability Allowance Act.
[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

§ 31.  Termination of payment of maintenance compensation and compensation for incapacity for work

  [Repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 32.  Compensation for non-proprietary damage in event of health damage and bodily injury

 (1) The damage specified in § 134 of the Law of Obligations Act is subject to compensation as non-proprietary damage.

 (2) The minimum amounts of non-proprietary damage in the case of non-proprietary damage resulting from causing health damage or a bodily injury are as follows:
 1) in the event of minor health damage or a minor bodily injury, 200 euros;
 2) in the event of minor health damage or a minor bodily injury of the medium severity, 700 euros;
 3) in the event of more serious health damage or a more serious bodily injury of the medium severity, 3,000 euros;
 4) in the event of serious health damage or a serious bodily injury, 4,200 euros;
 5) in the event of very serious health damage or a very serious bodily injury, 6,000 euros;
 6) in the event of extremely serious health damage or an especially serious bodily injury, 7,000 euros.

 (3) The minimum amount specified in subsection 2 of this section increases each year, starting from the first day of the current year, by the increase in the consumer price index of the previous year as published by Statistics Estonia, the indexed amount being rounded to the nearest hundredth. If the consumer price index does not increase or decreases, the existing minimum amount will be retained. The compensation for damage is based on the minimum amount of the year in which the insured event occurred.

 (4) The fund publishes the indexed minimum amounts on its website in January each year.

 (5) If the injured party has notified the insurer of an insured event in the form provided in subsection 2 of § 37 of this Act, in the course of which the injured party has suffered health damage or a bodily injury, the insurer will compensate for the non-proprietary damage at least in the amount specified in subsections 2 and 3 of this section, taking into account the extent of the liability of the person who caused the damage and the injured party’s own contribution to the damage.

 (6) The injured party has the right to compensation for non-proprietary damage to an extent exceeding that provided in subsections 2 and 3 of this section if there are circumstances that provide a basis for granting a greater compensation.

 (7) The insurer determines the amount of compensation for non-proprietary damage, taking into account, among other things, the degree of severity of the health damage or bodily injury, the depth of the functional disturbance, the length of treatment and decrease in the capacity for work, the reduction in quality of life and well-being and the injured party’s own contribution to the occurrence of the insured event. The insurer may require the injured party to provide the information necessary to establish the circumstances.

 (8) The fund publishes on its website statistics, short summaries of public judicial dispositions and anonymised data on the compensation for non-proprietary damage paid out by degrees of severity of health damage, specifying, where possible, the circumstances taken into account upon granting the compensation.

 (9) The minister in charge of the policy sector establishes, by a regulation, the composition and time of publication of the data to be published about compensation for non-proprietary damage.

 (10) The characteristics of the degrees of severity of health damage specified in subsection 1 of this section are established by a regulation of the minister in charge of the policy sector.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 33.  Damage not subject to compensation

  The following is not compensated for on the basis of this Act:
 1) damage exceeding the sum insured specified in § 25 of this Act;
 2) [repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 3) [repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 4) damage arising from the worsening of the quality of the environment, except reasonable expenses related to initial rescue operations for the purpose of eliminating initial damage and preventing further damage;
 5) loss of income, except the loss of income due to the causing of death, health damage or a bodily injury to the extent provided for in this Act;
 6) [repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 7) damage inflicted upon oneself, except for the treatment costs of the driver who caused an insured event specified in subsection 1 of § 44 of this Act;
 8) damage caused to the owner of the vehicle driven by the possessor of the vehicle, which is specified in § 26 of this Act;
 9) [repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 10) [repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 11) [repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 12) damage the prevention of which is not the purpose of following traffic rules, for instance damage arising from the fact that, due to the insured event, the injured party fails to perform a contract concluded with a person who was not involved in the insured event;
 13) in the case of a contract for carriage other than a contract for carriage of passengers, damage arising from damage to or loss of the cargo carried by the carrier who caused the insured event.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

Chapter 4 Compensation of Damage  

Subchapter 1 General Provisions  

§ 34.  Right of claim of injured party

 (1) If in the case of the same insured event the injured party is entitled to the compensation of damage on the basis of this Act as well as a voluntary insurance contract, the person will have the right to choose on which basis to claim the compensation of damage, unless agreed otherwise in the voluntary insurance contract.

 (2) The provisions of this Subchapter do not restrict the right of the injured party to file a claim for damages against the person who caused the damage as a joint and several obligor.

§ 35.  Compensation obligation of obligated insurer and fund

 (1) The injured party can choose whether to claim the compensation for damage from:
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 1) the insurer who insured the liability arising from the damage caused by the use of the vehicle that caused the insured event (hereinafter in this Chapter insurer of party who caused damage), or
 2) the insurer who insured the liability arising from damage caused by the vehicle of the injured party (hereinafter in this Chapter insurer of injured party).

 (1¹) The injured party may not claim compensation from both the insurer of the party who caused the damage and the insurer of the injured party in respect of the same insured event, unless otherwise provided in law. Nor may the injured party, after filing a claim, withdraw it and file a claim against another insurer.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (2) The injured party has the right to file a claim for compensation of damage against the insurer of the injured party within 30 calendar days as of the occurrence of the insured event.

 (3) In relations with the injured party, the policyholder and the insured person upon identifying the circumstances related to the insured event, the insurer of the injured party has the same rights and obligations as the insurer of the party who caused the damage, unless otherwise provided by this Act.

 (4) In the events provided for in this Act, the fund will compensate for the damage caused to the injured party. The fund will compensate the damage to the same extent and in accordance with the same procedure as the insurer of the party who caused the damage, unless otherwise provided for in this Act.

§ 36.  Duration of obligation to compensate for damage

 (1) The insurer of the person who caused damage or the insurer of the injured party must compensate the injured party for damage on behalf of the insured person if the insured event occurred during the term of validity of the contract.

 (2) Within 12 calendar months after the expiry of the contract the insurer under the last contract of the person who caused damage or the insurer of the injured party must compensate the injured party for damage if the person who caused the damage failed to abide by the prohibition on engaging a vehicle in traffic imposed in subsection 2 of § 3 of this Act and damage was caused by the use of the vehicle.

 (3) Under subsection 2 of this section, the insurer is not required to compensate for damage if:
 1) the vehicle or off-road vehicle involved is a vehicle or off-road vehicle specified in clause 3, 4 or 5 of subsection 1 or in subsection 2 of § 4 of this Act or its trailer;
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 2) the insured event is caused with a vehicle not registered in the motor register, including with a vehicle that is deemed an unregistered vehicle, or with a vehicle with regard to which automatic motor insurance has taken effect.
[RT I, 10.01.2019, 1 – entry into force 20.01.2019]

§ 37.  Notification of insured event

 (1) The person who caused damage and the injured party must immediately inform either the insurer of the person who caused the damage or the insurer of the injured party about the insured event.

 (2) If the injured party has informed of the insured event in a form that can be reproduced in writing, it will be deemed that the injured party has also filed a claim for compensation of damage.

§ 38.  Presentation of damaged thing and prevention of further damage

 (1) The person who caused damage and the injured party must keep the vehicle or another thing that was damaged as a result of the occurrence of the insured event in the condition following the insured event to the extent possible and present it to the insurer.

 (2) The damaged thing must not be kept in the condition following the insured event after the insurer has inspected it or more than seven calendar days after notifying about the occurrence of the insured event. If the insurer has requested in a form that can be reproduced in writing that the thing be kept in such a condition longer, it must be preserved for 15 calendar days as of the receipt of the respective request from the insurer.

 (3) Alterations may be made with regard to the damaged thing if it is necessary for reduction of damage or in the public interests.

 (4) The duty to prevent and reduce damage and ensure the possibility of identifying damage set out in § 488 of the Law of Obligations Act applies to the owner of the vehicle, the authorised user of the vehicle, the policyholder, the driver of the vehicle and the injured party.

§ 39.  Insurer’s obligation to compensate for damage upon occurrence of insured event

 (1) The obligation to compensate for damage falls due after the steps required for identifying the occurrence of the insured event and the existence and scope of the compensation obligation of the insurer have been taken. The insurer must take all the required steps within a reasonable time, but not later than on the 30^th calendar day after the notification about the insured event.

 (2) If, with good reason that is independent of the insurer, the insurer cannot take all the required steps within the term specified in subsection 1 of this section, the insurer must inform the injured party thereof and explain the good reason and indicate the estimated term of completing the required steps.

 (3) Immediately after the completion of the steps specified in subsection 1 of this section, the insurer must compensate for damage or inform the injured party about the refusal to compensate for damage.

 (4) In civil, criminal, misdemeanour or conciliation proceedings have been initiated with regard to an insured event and the circumstances identified in the proceedings are of great importance from the point of view of the existence or scope of the obligation to compensate for damage, the term of taking the steps specified in subsection 1 of this section will be extended by the time of identification of these circumstances. It is presumed that the circumstances identified in the proceedings do not have any great relevance from the point of view of the existence or scope of the obligation to compensate for damage.

§ 40.  Notifying of refusal to settle claim

 (1) The insurer will inform the injured party in the form that can be reproduced in writing about the full or partial refusal to compensate for damage.

 (2) If, upon compensation of damage, the insurer relies on the initiation of the proceedings specified in subsection 4 of § 39 of this Act, the insurer must explain to the injured party in a form that can be reproduced in writing and within the term specified in subsection 1 of § 39 of this Act, why the circumstances to be identified in the proceedings are of great relevance from the point of view of identifying the existence or scope of the obligation to compensate for damage and indicate the estimated term of compensation for damage.

 (3) The decision specified in subsection 1 of this section also applies to the other insurer obligated to compensate as specified in § 35 of this Act against whom the injured party had the right to file a claim for compensation for damage.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 41.  Right of claim against insurer of injured party

 (1) The injured party can file a claim for the compensation of damage arising from the destruction or damage of a vehicle against its insurer as well as claim compensation for damage arising from the destruction or damage of a thing as a result of the same insured event.

 (2) The insurer of the injured party will not compensate for damage if:
 1) [repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 2) the damaged vehicle or the vehicle that caused the damage is normally based abroad;
 3) the insured event did not occur in Estonia.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (3) The insurer of the injured party will have the right to refuse to compensate for damage if:
 1) [repealed – RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 2) the circumstances of the insured event are not clear, among other things, if the injured party, the policyholder, the insured person or the insurers do not reach an agreement on who is responsible for causing the damage.

§ 42.  Notification obligation of insurer of injured party

 (1) If the insurer of the injured party finds that it is not obligated to compensate for damage under subsection 3 of § 41 of this Act, the insurer will inform the injured party thereof immediately, but not later than on the 14^th calendar day after the filing of the claim for compensation of damage. After the expiry of the term, the insurer can no longer rely on the grounds for refusal to compensate the damage specified in subsection 3 of § 41 of this Act.

 (2) In the event specified in the first sentence of subsection 1 of this section, the injured party may file a claim for compensation of damage against the insurer of the person who caused damage.

§ 43.  Right of claim against fund

  The injured party may, to the extent provided by this Act, demand the compensation of damage from the fund if:
 1) the insured event occurred in the territory of Estonia, the claim of the injured party regarding the damage to be compensated is clear and the dispute only concerns the fact which insurer operating in Estonia is obligated to compensate for the damage;
 2) the insured event was caused by a vehicle with regard to which there is a dispute between an insurer operating in Estonia and the fund over the identification of the vehicle, the validity of the insurance contract or the insurer’s obligation to compensate for damage.

Subchapter 2 Special Cases of Compensation for Damage  

§ 44.  Compensation of treatment costs of driver who caused insured event

 (1) The insurer of the person who caused damage will compensate the medical institution for the treatment costs of the driver who caused an insured event in Estonia, unless such costs are not subject to compensation under the law of the country of location of the insurer who provided the insurance cover or under the conditions of the insurance contract.

 (2) The insurer will not compensate for the treatment costs of the driver who caused an insured event if the driver caused the insured event deliberately or if the driver was in a state of intoxication or in the state specified in subsection 3 of § 69 of the Road Traffic Act at the time of occurrence of the insured event.

§ 45.  Insured event caused by uninsured vehicle

 (1) If the insured event is caused by an uninsured vehicle or if one of the insurers has the compensation obligation under subsection 2 of § 36 of this Act, the fund will compensate for the damage.

 (2) If the insured event is caused by an uninsured vehicle specified in § 5 of this Act, the fund will compensate for the damage.

 (3) The fund will not compensate for the damage if the insured event is caused in an area closed to public traffic by a vehicle specified in clause 4 of § 5 of this Act which is not permitted to be used in road traffic.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (4) Notwithstanding the provisions of clause 2 of subsection 1² of § 1 of this Act, the fund compensates spectators, pedestrians, bystanders and other third parties for damage caused by a vehicle to the extent provided in this Act and to the extent that the damage is not compensated for on the basis of another liability insurance contract, security agreement or Act.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 46.  Insured event caused by unidentified vehicle

 (1) Damage caused by an unidentified vehicle subject to the insurance obligation will be compensated for by the fund, taking into account the restrictions provided in this section.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (2) An insured event is deemed as caused by an unidentified vehicle if, given the nature of the damage caused as a result of the insured event, it can be presumed that the insured event was caused by a vehicle, but the insurer of the vehicle that caused the insured event cannot be identified.

 (3) The fund will not compensate for damage caused by an unidentified vehicle and consisting in the following:
 1) a vehicle is destroyed or damaged, unless at least a serious bodily injury or serious health damage is caused to a person or the death of a person is caused as a result of the same insured event;
 2) a vehicle deteriorates the condition of the road during the use of the road, for example by smearing it, creating holes or longitudinal ruts, or wearing road markings or shoulders;
 3) a thing is damaged or destroyed in such a way that the unidentified vehicle did not touch the damaged thing.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (4) Upon compensation for damage arising from the destruction of or damage to a vehicle in the event provided in clause 1 of subsection 3 of this section, the fund will apply an excess of 250 euros to such portion of the compensation.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (5) If a thing other than a vehicle is damaged or destroyed, the fund will apply an excess of up to 150 euros with regard to the injured party per insured event.

§ 47.  Insured event caused by trailer

 (1) If the driver of a vehicle causes an insured event with the vehicle that is attached to another vehicle or trailer using a direct hitch at the time of occurrence of the insured event, it will be deemed that the damage was caused by the traction unit. Damage will also be deemed to have been caused by the traction unit if the insured event was caused by the breaking of the coupling device or the separation of the coupling device from the traction unit in any other manner.

 (2) If an insured event is caused by a trailer that does not have a traction unit and starts moving on its own or by a trailer that does not have a traction unit and is parked, stopped or otherwise left standing, the damage will be deemed to have been caused by the trailer.

 (3) If the traction unit is not identified, damage will be compensated for on the basis of the contract concluded with regard to the trailer.

§ 48.  Insured event abroad

 (1) If an insured event was caused in the territory of a contracting state or a country that has joined the international green card system by the use of a vehicle normally based and insured in a contracting state and the insurer has been identified, the injured party domiciled in Estonia will have the right to file a claim for compensation of damage against the insurer via its Estonian representative.

 (2) The representative who receives the claim must identify the existence and scope of the insurer’s performance obligation and make a decision to compensate or refuse to compensate for damage. The decision must be made as soon as the information required for it becomes available, but not later than within three months as of the receipt of the claim.

 (3) In the case of the insured event specified in subsection 1 of this section the injured party may file a claim for compensation of damage against the fund if:
 1) the insurer does not have a representative in Estonia;
 2) three calendar months after the filing of the claim against the insurer or its Estonian representative the damage has not been compensated and no reasons for the refusal to fully or partially compensate for it have been given.

 (4) The injured party lacks the right to file the claim specified in subsection 3 of this section if the injured party has filed with the court the same claim against the insurer of the person who caused the damage.

 (5) The fund will immediately inform the person who caused damage and their insurer or the insurer’s Estonian representative as well as the authority that is responsible in the contracting state that issued the authorisation to the insurer for compensation of damage caused as a result of an insured event specified in subsection 1 of this section about the receipt of a claim specified in subsection 3 of this section. If the insured event was caused by a vehicle normally not based in the state where the insured event occurred, the fund will also inform the competent authority of the state where the insured event occurred.

 (6) If the insurer of the person who caused damage or the Estonian representative of the insurer does not, within two calendar months from the filing of the claim specified in subsection 3 of this section, make a reasoned decision to compensate or refuse to compensate for the damage, the fund will have the right to take the steps required for identifying the circumstances of the insured event and the extent of settlement of the claim as well as make a reasoned decision to compensate or refuse to compensate for the damage.

 (7) The obligations of the fund provided in this section are regulated by the agreement concluded between the authorities performing the functions of compensation bodies of contracting states on 29 April 2002 on the basis of Article 24(3)(a) of Directive 2009/103/EC of the European Parliament and of the Council.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 49.  Insured event that has occurred abroad and whereby vehicle that caused it or insurer of person who caused it cannot be identified

 (1) If an insured event occurred in the territory of another contracting state and the vehicle subject to the insurance obligation that caused the insured event or the insurer of the party who caused the damage has not been identified within two calendar months of the occurrence of the insured event, the injured party whose residence or registered office is in Estonia will have the right to file a claim for compensation of damage against the fund.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (2) Within two calendar months as of the receipt of the claim specified in subsection 1 of this section, the fund must compensate the damage or state the reasons of refusal to compensate the damage.

§ 50.  Insured event caused in Estonia by use of vehicle insured abroad

 (1) If an insured event in Estonia is caused by the use of a vehicle the liability for which has been insured by a foreign insurer, the Estonian representative (hereinafter representative) of the insurer will compensate the injured party for damage.

 (2) If a foreign insurer does not have a representative in Estonia, the fund will compensate for damage.

 (3) If an insured event in Estonia was caused by the use of a vehicle normally based in another contracting state, damage will be compensated to the extent of the sum insured established in the law of the country where the vehicle is normally based, provided that it exceeds the sum insured provided by this Act.

 (4) The fund will disclose a list of representatives and their contact details on its website.

§ 50¹.  Compensation of damage by fund in event of insolvency of insurer

 (1) If an insured event has been caused in the territory of Estonia, a contracting state or a country that has joined the international green card system by the use of a vehicle normally based and insured in Estonia or in another contracting state and proceedings provided for in the law of the country of registered office of the insurer and corresponding to the proceedings specified in §§ 155 and 157 of the Insurance Activities Act have been initiated against the insurer, the injured party whose residence or registered office is in Estonia will have the right to file a claim for compensation of damage with the fund.

 (2) The fund will immediately notify the receipt of the claim specified in subsection 1 of this section to the insurer specified in the same subsection or to its liquidator or administrator for the purposes of Article 268(1)(e) and (f) of Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1–155) as well as to the authority that is responsible for the compensation of damage in the event specified in subsection 1 of this section in the contracting state that issued the authorisation to the insurer.

 (3) The insurer, liquidator or administrator specified in subsection 2 of this section will immediately notify the fund of whether the insurer compensates or refuses to compensate the injured party for the claim specified in subsection 1 of this section.

 (4) After the existence and extent of the obligation to compensate for damage have been identified, the fund will submit to the injured party a reasoned decision on the full or partial compensation of the damage or on the refusal to compensate for the damage as soon as the necessary information is available, but no later than within three months of the receipt of the claim specified in subsection 1 of this section.

 (5) The fund pays compensation to the injured party immediately, but no later than within three months after the decision specified in subsection 4 of this section has been made.

 (6) The obligations of the fund provided for in this section are regulated by the agreement specified in subsection 7 of § 48 of this Act, the agreement concluded on the basis of Article 10a(13) and Article 25a(13) of Directive 2009/103/EC of the European Parliament and of the Council between the authorities performing the functions of compensation bodies of contracting states, and the delegated act of the European Commission elaborating the said Articles.

 (7) In the event of bankruptcy of an Estonian insurer, the claim for compensation of damage that the injured party had against the insurer transfers to the fund after the damage has been compensated for. The claim of the fund is deemed to be the claim arising from the insurance contract and it is regulated by the provisions of § 171 of the Insurance Activities Act.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

§ 51.  Settlers of cross-border claims of Estonian insurer

 (1) The insurer must appoint a settler of cross-border claims for each contracting state and the function of such settler is to compensate an injured party domiciles in the respective state for damage suffered as a result of an insured event, provided that the damage has been caused in a contracting state and the particular state is not the domicile of the injured party.

 (2) The insurer will immediately inform the fund about the appointment of a person specified in subsection 1 of this section. The insurer will immediately inform the fund about the change of a settler of cross-border claims or changes in their contact details.

Subchapter 3 Recovery Claims  

§ 52.  Extent of recovery claim

  The insurer or the fund has the right to recover damage compensated for due to the occurrence of an insured event only on the grounds and conditions provided for in this Subchapter. The fund also has the right to recover reasonable expenses incurred for identifying the circumstances of an insured event, except in the events provided for in clauses 2–5 of § 57 of this Act. The provisions of this Subchapter do not restrict the right of the insurer and the fund to file a recovery claim against a person not specified in this Subchapter on another ground arising from law.

§ 53.  Recovery claim against driver who caused insured event

 (1) The insurer has the right to file a recovery claim against the driver if the driver:
 1) wilfully caused the insured event;
 2) caused the insured event and thereafter unlawfully and wrongfully left the scene of the insured event following the insured event;
 3) drove a vehicle that was illegal to possess;
 4) drove a vehicle in a state of intoxication or in a state specified in subsection 3 of § 69 of the Act or consumed alcohol or a narcotic or psychotropic substance immediately after the occurrence of the insured event, or
 5) a contract specified in subsection 3 of § 14 of this Act had been concluded with regard to the vehicle, and the driver violated the conditions of the effectiveness of the insurance cover of the vehicle.

 (2) The insurer has the right to file a recovery claim against a driver if the driver caused an insured event because the driver:
 1) exceeded the permitted speed limit by 41 kilometres per hour or more;
 2) knowingly disregarded a stop signal given by a person exercising traffic supervision specified in subsection 1 of § 200 of the Road Traffic Act;
 3) drove a vehicle by disregarding the prohibition to drive a power-driven vehicle specified in clause 1 or 2 of subsection 1 of § 90 of the Road Traffic Act, or
 4) was removed from driving a vehicle in accordance with clause 5, 7 or 9 of subsection 2 of § 91 of the Road Traffic Act and the ground for removal from driving had not lapsed by the time of occurrence of the insured event.

 (3) It is presumed that the driver caused the insured event due to a circumstance specified in subsection 2 of this section.

 (4) The insurer has the right to file a recovery claim against the driver to the extent of 30 per cent of the insurance compensation payable, but not more than 640 euros, if the driver did not present the vehicle for inspection as requested by the insurer or did not give any explanations about the insured event.

§ 54.  Recovery claim against employer of driver who caused insured event

  The insurer has the right to file a recovery claim against the employer of the driver who caused an insured event if the insured event was caused because the driver broke the rules of working and rest time provided by law. It is presumed that the insured event was caused by a violation of the rules of working and rest time if the driver exceeded the maximum weekly driving time per week preceding the insured event or the maximum daily driving time per 24-hour-period preceding the insured event by at least 25 per cent.

§ 55.  Recovery claim against person responsible for performance of insurance obligation

  The insurer has the right to file a recovery claim against the person who, under this Act, is responsible for the performance of the insurance obligation if the insured event occurred within 12 calendar months after the expiry of the contract and the prohibition on engaging the vehicle in traffic provided for in subsection 2 of § 3 of this Act was not adhered to.

§ 56.  Recovery claim against insurer in case of failure to pay insurance premium by due date

  If the policyholder fails to perform the obligation to pay the insurance premium and the insurer is released of the compensation obligation towards the policyholder under § 457 or § 458 of this Act, the insurer will, on the basis of subsection 2 of § 521 of the Law of Obligations Act, have the right to file a recovery claim against the policyholder to the extent of 30 per cent of the insurance compensation payable, but not more than 640 euros.

§ 57.  Recovery claims of fund

  The fund has the right to file a recovery claim:
 1) against the person subject to the insurance obligation or against the possessor of the vehicle if the insured event was caused by a vehicle with regard to which the insurance obligation had not been fulfilled, unless the insured event was caused by the use of a vehicle having automatic motor insurance;
 2) against the driver who caused an insured event if the insured event was caused by the use of a vehicle having automatic motor insurance on the grounds provided for in subsections 1 and 2 of § 53 of this Act;
 3) to the extent of 30 per cent of the insurance compensation payable, but not more than 640 euros, against the driver who caused an insured event if the insured event was caused by the use of a vehicle having automatic motor insurance and the driver did not present the vehicle for inspection as requested by the fund or did not give explanations about the circumstances of the insured event;
 4) against the employer of the driver who caused an insured event if the insured event was caused by the use of a vehicle having automatic motor insurance on the grounds provided for in § 54 of this Act;
 5) against an insurer if the fund compensated for damage on behalf of the insurer;
 6) against the authority performing the functions of the compensation body of another contracting state if the insured event was caused by the use of a vehicle registered in the Estonian motor register at the time when the vehicle was delivered from Estonia to the contracting state, provided that no more than 30 calendar days have passed from the issue of a customs plate to the vehicle or from the delivery of the vehicle to the transferee by the time of occurrence of the insured event;
 7) against the Defence Forces, the Estonian Internal Security Service, the Defence League or the Police and Border Guard Board, respectively, if the insured event was caused by the use of a vehicle that belonged to the aforementioned institution or that the aforementioned institution was authorised to use and if the liability arising from the damage caused by the use of the vehicle was not insured;
 8) against the possessor of the vehicle if the damage was caused by the use of a vehicle exempt from the insurance obligation on the basis of § 5 of this Act;
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]
 9) to the extent of the compensation paid out to the injured party, against the authority that is responsible for the compensation of damage caused by the use of a vehicle normally based and insured in a contracting state in the event of the proceedings specified in subsection 1 of § 50¹ of this Act and initiated against the insurer in the contracting state that issued the authorisation to the insurer;
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]
 10) against an Estonian insurer to the extent of the compensation paid pursuant to § 50¹ of this Act;
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]
 11) against the persons provided for in §§ 53 and 54 of this Act to the extent of the compensation paid by the fund instead of an Estonian insurer pursuant to § 50¹;
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]
 12) against the organiser of a sports event or a relevant sport federation who has failed to ensure the existence of an insurance contract or a security agreement specified in subsection 2 of § 24¹ of the Sports Act if the damage has been caused by the use of a vehicle not insured pursuant to the said section of the Sports Act or to the extent that the voluntary insurance does not compensate for the damage;
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 13) against a person who is responsible for causing damage by the use of a vehicle in the case provided in clause 2 of subsection 1² of § 1 of this Act.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 58.  Recovery claim against insurer of person who caused damage

 (1) If a recovery claim is filed against the insurer of an injured party, the insurer will inform the insurer of the person who caused damage about the filing of the claim.

 (2) The insurer of the person who caused damage must compensate the insurer of the injured party for the insurance compensation and reasonable expenses incurred for identifying the circumstances of the insured event and payment of the compensation.

 (3) The obligation provided for in subsection 2 of this section must be performed immediately, but not later than on the 30^th calendar day after the filing of the claim, unless the insurers have agreed otherwise.

 (4) Along with a claim for recovery of the insurance compensation, the insurer of the injured party will submit to the insurer of the person who caused damage all the information known to it about the insured event in a form that can be reproduced in writing, unless the insurers have agreed otherwise.

§ 59.  Conditions of filing of recovery claim

 (1) If the insurer or the fund has the right of recovery against several persons under this Subchapter, these persons will be jointly and severally liable towards the insurer or the fund.

 (2) If insurance compensation has been paid out to the injured party by the insurer of the injured party, the insurer of the person who caused damage will file a claim for recovery provided in subsection 7 of § 26 of this Act and in this Subchapter after the performance of the obligation provided in subsection 2 of § 58 of this Act towards the insurer of the injured party.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (3) The term of expiry of the right of claim provided for in this Subchapter is three years as of compensation of damage.

Chapter 5 Automatic Motor Insurance  

§ 60.  Automatic motor insurance

 (1) Automatic motor insurance is a type of compulsory insurance aimed at:
 1) providing vehicles that have been registered in the motor register, but do not have an insurance contract (except off-road vehicles, vintage vehicles and racing vehicles), with automatic insurance cover;
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 2) reducing the number of uninsured vehicles in traffic;
 3) accumulating funds for compensation of damage caused by uninsured vehicles and vehicles having automatic insurance cover.

 (2) The automatic insurance cover of a vehicle that does not have an insurance contract, but has been registered in the motor register, except with regard to an off-road vehicle, a vintage vehicle or a racing vehicle, takes effect where:
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 1) the vehicle is registered in the motor register;
 2) 12 calendar months pass from the expiry of the validity of the last contract made with regard to the vehicle;
 3) 12 calendar months pass from the expiry of the validity of the last contract made with regard to the vehicle;
 4) the suspended motor register entry of the vehicle is restored, or
 5) the person subject to the insurance obligation changes in the motor register.
[RT I, 10.01.2019, 1 – entry into force 20.01.2019]

 (3) The automatic insurance cover of a vehicle will terminate once:
 1) a contract concluded with regard to the vehicle will enter into force;
 2) the vehicle is deleted from the motor register or is declared an unregistered vehicle.

 (4) Automatic motor insurance is regulated by the provisions regulating compulsory motor insurance, unless otherwise provided for in this Chapter.

§ 61.  Insured event subject to automatic motor insurance and fund’s obligation to compensate for damage

 (1) In the case of an insured event subject to automatic motor insurance, the fund will compensate damage caused to a third party by a vehicle covered by the automatic motor insurance cover to the extent provided for in this Act.

 (2) In the case of an insured event subject to automatic motor insurance, the fund, the person subject to the insurance obligation, the insured person and the injured party have the same rights and obligations that they would have in the case of an insured event subject to compulsory motor insurance, unless otherwise provided for in this Chapter.

 (3) The Administrative Procedure Act is not applicable to steps taken to identify the existence and extent of the fund’s obligation to compensate for damage arising from insured events subject to automatic motor insurance or to the making of decisions concerning insured events subject to automatic motor insurance.

 (4) Disputes over the fund’s obligation to compensate for damage arising from an insured event subject to automatic motor insurance and the extent of the obligation as well as the recovery claims of the fund are resolved in accordance with the procedure established in the Code of Civil Procedure.

§ 62.  Automatic motor insurance premium

 (1) Automatic motor insurance premium means compulsory insurance premium for compensation of damage caused by the use of uninsured vehicles and vehicles subject to automatic insurance cover.

 (2) The person subject to the insurance obligation must pay the fund automatic motor insurance premium for the period during which the vehicle has automatic insurance cover.

§ 63.  Automatic motor insurance premium rates

 (1) The insurance premium rates serving as the basis for payment of the automatic motor insurance premium will be established by a regulation of the minister in charge of the policy sector.

 (2) The automatic motor insurance premium rates will be calculated in line with the acknowledged rules of actuarial mathematics, taking into account the statistics of motor insurance, including damage caused by uninsured vehicles and vehicles having automatic motor insurance cover as well as other factors influencing the size of the insurance premium rate. The rates of automatic motor insurance premium must be sufficient to compensate for insured events subject to automatic motor insurance and reasonable expenses incurred for identifying the circumstances of these events and to cover the operating expenses of the fund relating to compulsory insurance.

§ 64.  Application of excess

 (1) In the case of an insured event subject to automatic motor insurance, the excess of the person subject to the insurance obligation is 640 euros per insured event.

 (2) In the case of an insured event subject to automatic motor insurance, the fund will compensate the third party for the entire damage to be compensated. The person subject to the insurance obligation must pay the excess amount to the fund.

§ 64¹.  Notification of automatic motor insurance

 (1) The fund sends the person subject to the insurance obligation the information explaining the insurance obligation and automatic motor insurance electronically, where necessary and possible before and within a reasonable time after the implementation of the automatic motor insurance.

 (2) The information specified in subsection 1 of this section has an informative meaning and the provisions of the Administrative Procedure Act do not apply to its delivery. The implementation of the automatic motor insurance or the obligation to pay the insurance premium does not depend on whether this information has been sent or received.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 65.  Notice of payment of automatic motor insurance premium and amount of excess

 (1) The fund will give the person subject to the insurance obligation a notice of payment regarding the automatic motor insurance premium payable or regarding the amount of excess.

 (2) The fund will submit the first notice of payment of the automatic motor insurance premium for the insurance period that is 30 calendar days from the start of the automatic insurance cover.

 (3) The fund will submit the second or next notice of payment of the automatic motor insurance premium for the insurance period that is 90 calendar days long.

 (4) If the automatic insurance cover expires during the insurance period, the fund will be entitled to the automatic motor insurance premium only for the calendar days during which the vehicle had the automatic insurance cover.

 (5) The notice of payment must contain the following information:
 1) the first name and surname and position of the person who drew up the notice;
 2) the date of drawing up the notice;
 3) the name and address of the payer;
 4) the make, model and registration plate of the vehicle;
 5) the amount of the automatic motor insurance premium or excess payable along with the overdue automatic motor insurance premium or excess and late interest payable in the event of overdue sums arising from the preceding insurance period;
 6) the legal ground of the notice of payment and, in the case of a payment notice of automatic motor insurance premium, a reference to the regulation of the minister in charge of the policy sector specified in subsection 1 of § 63 of this Act;
 7) the current account number of the fund;
 8) the due date;
 9) a warning regarding the obligation to pay late interest and compulsory enforcement in the event of failure to pay the automatic motor insurance premium or the amount of excess by the due date;
 10) the possibility and time limit of and procedure for contesting the notice;
 11) the signature of the person who drew up the notice of payment; thereby a mechanically reproduced signature is deemed to be equal therewith.

 (6) The amount payable according to the notice of payment must be paid to the current account of the fund by the due date. The payment term must be at least 30 calendar days from the delivery of the notice of payment.

 (7) If the amount payable according to the notice of payment is not paid by the due date, later interest may be charged on the overdue sum at the rate of 0.019 per cent per calendar day. The total amount of late interest must not exceed the automatic motor insurance premium or the amount of excess specified in the notice of payment.

 (8) Automatic motor insurance premiums and amounts of excess accrue to the current account of the fund and are considered the revenue of the fund.

§ 66.  Delivery of notice of payment of automatic motor insurance premium and amount of excess

 (1) The delivery of a notice of payment of the automatic motor insurance premium and the amount of excess is regulated by the procedure established in the Administrative Procedure Act, taking into account the specifications arising from this section.

 (2) A notice of payment of the automatic motor insurance premium and the amount of excess may be sent to a legal person or agency also:
 1) by a regular letter to the address entered in the register;
 2) by e-mail to the address entered in the register.

 (3) A notice of payment of the automatic motor insurance premium and the amount of excess delivered in the manner specified in clause 1 of subsection 2 of this section will be deemed as delivered when five calendar days have passed from sending it within the territory of Estonia or 30 calendar days have passed from sending it abroad.

§ 67.  Time limit of filing intra-authority appeal against notice of payment of automatic motor insurance premium and amount of excess

  An intra-authority appeal against a notice of payment of the automatic motor insurance premium and the amount of excess must be submitted within 30 calendar days as of the day when the person subject to the insurance obligation learned or should have learned of the contested notice of the automatic motor insurance premium and the amount of excess.

§ 68.  Compulsory enforcement of automatic motor insurance premium and amount of excess

  A notice of payment of the automatic motor insurance premium and amount of excess are administrative decisions aimed at the performance of a financial obligation in public law for the purposes of clause 21 of subsection 1 of § 2 of the Code of Enforcement Procedure.

Chapter 6 Motor Insurance Fund  

§ 69.  Administrative contract

 (1) In the name of the Republic of Estonia, the minister in charge of the policy sector will conclude an administrative contract with the fund, setting out the parties’ rights and obligations for the performance of the following tasks specified in this Act:
 1) verification of the performance of the insurance obligation set out in subsection 1 of § 11 of this Act and implementation of the automatic motor insurance provided for in Chapter 5;
 2) performance of the duties of a member of the Council of Bureaux and the Estonian national bureau of the green card, including ensuring the possibility to conclude a contract specified in subsection 3 of § 13 of this Act;
 3) in the events and in accordance with the procedure provided for in §§ 45, 46 and 50¹ of this Act, performance of the obligation to compensate the injured party for damage;
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]
 4) in the events provided for in §§ 48–50 of this Act, performance of functions relating to compensation of injured parties for damage;
 5) exercise of the rights of recovery provided for in § 57 of this Act;
 5¹) notifying the person subject to the insurance obligation of the insurance obligation and of the automatic motor insurance;
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]
 6) performance of tasks relating to the motor register, which are provided for in Chapter 7 of this Act;
 7) ensuring the pre-litigation settlement of compulsory motor insurance disputes;
 7¹) exchange of information and organisation of cooperation with relevant information centres of other contracting states, authorities performing the functions of compensation bodies of contracting states and authorities responsible for the compensation of damage in the event of the proceedings specified in subsection 1 of § 50¹ of this Act and initiated against the insurer of the contracting state in the contracting state that issued the authorisation to the insurer;
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]
 7²) development and publication of a compulsory motor insurance comparison calculator;
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]
 8) performance of other tasks, which ensures the functioning of the compulsory motor insurance system established in this Act.

 (2) The administrative contract will be made for a term of up to 20 years.

 (3) In the event of the expiry or early termination of the administrative contract the minister in charge of the policy sector will decide the renewal of the contract, appointment of a new body to perform the functions of the fund or the performance of the functions in another manner.

§ 69¹.  Motor insurance comparison calculator

  The fund maintains a compulsory motor insurance price comparison calculator on its website. Where necessary, the procedure for its maintenance is specified by an administrative contract.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

§ 70.  Fund membership

 (1) Each insurer entitled to operate in Estonia as an insurer of compulsory motor insurance is a member of the fund.

 (2) The rights and obligations of the members of the fund arising from handing and settlement of claims provided for in this Act, which are filed against the insurer of the injured party, the cooperation principles and the procedure for settling disputes will be established by the articles of association of the fund or by a decision of the general meeting of the fund.

 (3) [Repealed – RT I, 29.06.2024, 2 – entry into force 15.07.2024]

§ 71.  Application of requirements regarding insurance activities to fund

 (1) Section 52, subsections 1 and 3 of § 83, subsections 1 and 3 of § 96, clauses 1–5, 7 and 8 of subsection 1 and subsection 2 of § 99, subsections 2 and 5 of § 106, subsections 1 and 2 of § 108 and §§ 129, 217–220¹, 253 and 264 of the Insurance Activities Act apply to the fund.
[RT I, 13.03.2019, 2 – entry into force 15.03.2019]

 (2) The fund must regularly assess its risks and solvency in accordance with clause 1 of subsection 1 of § 100 of the Insurance Activities Act and take the conclusions of the assessment into account upon organising its activities.

 (3) The fund will establish internal rules that, among other things, set out the procedure for assessment of the risks and solvency of the funds, application of the actuarial function, management of investments, loss adjustment and indemnification. The fund must review the internal rules at least once a year and, where necessary, revise the rules. The internal rules must be in a form reproducible in writing.

 (4) Section 253 of the Insurance Activities Act applies to the audit firm that audits the fund.

 (5) The Financial Supervision Authority exercises supervision over the provisions of subsections 1–4 of this section and § 71¹ of this Act to the extent and in accordance with the procedure set out in Chapter 12 of the Insurance Activities Act.

 (6) The accounting principles and the manner of presentation of information used upon drawing up the financial statements of the fund must be in accordance with the international financial reporting standards specified in clause 2 of subsection 1 of § 17 of the Accounting Act.

 (7) The fund must publish its annual report within two weeks after its approval, but not later than within four months after the end of the financial year, and draw up and publish interim accounts on the three, six, nine and twelve months of the financial year within two months following the end of the respective reporting period. The annual report and the interim accounts will be published on the fund’s website and made available at the seat of the fund.
[RT I, 07.07.2015, 1 – entry into force 01.01.2016]

§ 71¹.  Fund’s own funds

 (1) The fund must have sufficient own funds for the performance of the obligations arising from this Act.

 (2) The fund calculates the minimum own funds taking into account all the quantifiable risks arising from known and planned activities, including at least the underwriting risk, market risk, credit risk and operational risk.

 (3) Own funds are calculated on the basis of Commission Delegated Regulation (EU) 2015/35 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 12, 17.1.2015, p. 1–797), and the structure and methodology of the solvency capital requirement standard formula provided for therein, taking into account the particular characteristics of the activities of the fund.

 (4) The fund submits the calculation of own funds, along with inputs and explanations, to the Financial Supervision Authority at least once a year.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

 (5) The terms and conditions of a contract by which the fund assumes a subordinated liability may be amended only with the prior consent of the Financial Supervision Authority if data and documents serving as the basis for the amendment of the terms and conditions of the subordinated liability have been submitted to the Financial Supervision Authority along with an impartial legal assessment of the compliance of the transaction with the requirements set out in this section.

 (6) In the case of a fixed-term subordinated liability, the fund will, twelve months before the due date of the claim arising from the subordinated liability, submit to the Financial Supervision Authority the current list and amount of own funds and the list and amount of estimated own funds as of the due date of the claim arising from the subordinated liability.

 (7) In the case of a subordinated liability of an unspecified term, the fund will submit to the Financial Supervision Authority the data specified in subsection 6 of this section six months before settlement of the claim arising from the subordinated liability.

 (8) The settlement of the claim arising from a subordinated liability included in the fund’s own funds is permitted solely on the fund’s own initiative and prior consent of the Financial Supervision Authority.

 (9) If the amount of the fund’s own funds falls below the percentage specified in subsection 1 of this section and it is not restored within one year in the course of the ordinary economic activities, the fund must submit to the Financial Supervision Authority a plan indicating the time limit and sources of financing for restoring the amount of the fund’s own funds. The time limit for restoring the required amount of the fund’s own funds must not exceed three years.
[RT I, 07.07.2015, 1 – entry into force 01.01.2016]

§ 71².  Membership fee of fund

 (1) The procedure for calculation and payment of the membership fee of the fund is provided for in the articles of association of the fund, taking into account that the membership fee must be sufficient:
 1) to meet the minimum requirement for own funds provided for in subsection 2 of § 71¹ of this Act;
 2) to perform the obligations provided for in this Act and in the articles of association of the fund and to bear the related expenses.

 (2) In order to cover the risk of insolvency of the insurer provided for in § 50¹ of this Act, the fund may collect membership fees only from insurers operating under an authorisation issued in Estonia.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

§ 71³.  Rights and obligations of fund in relation to insolvent insurer

 (1) The fund will immediately notify a decision made or a step taken by a competent authority in respect of the insurer for initiating the proceedings specified in subsection 1 of § 50¹ of this Act to the authorities of all contracting states responsible for the compensation of damage in the event of insolvency of the insurer in the contracting state that issued the authorisation to the insurer.

 (2) In order to perform the compensation obligation arising from this Act, the fund will:
 1) cooperate with relevant information centres of contracting states, authorities performing the functions of compensation bodies of contracting states and authorities responsible for the compensation of damage arisen as a result of an insured event in the contracting state that issued the authorisation to the insurer due to the insurer’s insolvency, as well as with the insurer specified in subsection 1 of § 50¹ of this Act, a liquidator and administrator, relevant competent authorities of Member States and the Financial Supervision Authority;
 2) participate in negotiations and conclude the agreements specified in subsection 7 of § 48 and subsection 6 of § 50¹ of this Act as well as other cooperation agreements for better organisation of the work of the fund and achievement of the objectives thereof;
 3) cooperate with relevant authorities, including on the basis of the agreements and act specified in subsection 6 of § 50¹ of this Act, and exchange information with them, including on details of claims;
 4) ensure sufficient funds for performing the compensation obligation, including cooperation agreements, of the fund.

 (3) The fund, having received a recovery claim in connection with the proceedings specified in subsection 1 of § 50¹ of this Act and initiated against an Estonian insurer from an authority of another contracting state that is responsible for the compensation of damage in the country of residence or registered office of the injured party, will compensate for the damage arisen as a result of such an insured event that has occurred by the use of a vehicle normally based and insured in Estonia in the territory of Estonia, a contracting state or a country that has joined the international green card system, to the extent of the insurance compensation paid out to the injured party. The fund performs the obligation within a reasonable time, but no later than within six calendar months of the receipt of the recovery claim, unless otherwise agreed with the authority of the contracting state that filed the recovery claim.

 (4) The cooperation and recovery claims provided for in this section are regulated, among other things, by the agreements and act specified in subsection 6 of § 50¹ of this Act.

 (5) The fund publishes on its website information on the right of claim of the injured party in the event of insolvency of the insurer.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

Chapter 7 Motor Insurance Register and Data Exchange  

§ 72.  Motor insurance register

 (1) The motor insurance register (hereinafter in this Chapter register) is a database that forms a part of the information system of the state and where data is processed for the following purposes:
 1) conclusion of contracts and ensuring the performance of contracts, including resolution of insured events;
 11) implementation of automatic motor insurance;
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 1²) keeping records of exemptions from the insurance obligation;
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 2) safeguarding the rights of persons harmed due to insured events;
 3) ensuring the functioning of the motor insurance system and performance of the insurance obligation;
 4) verification of performance of the insurance obligation, existence of motor insurance and validity of exemption from the insurance obligation;
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 5) gathering motor insurance statistics, among other things, for the purpose of assessing the underwriting risk, prevention of motor damage and carrying out traffic safety surveys.

 (2) The register will be founded and its statutes approved by a regulation of the minister in charge of the policy sector.

 (3) The fund is the controller of the register.

 (4) It is presumed that the insurance cover data entered in the register is correct.

§ 73.  Primary data of register

 (1) For the purposes of subsection 1 of § 43⁶ of the Public Information Act, the primary data of the register is data about:
 1) contracts concluded and automatic motor insurance;
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]
 2) insured events that have occurred in Estonia;
 3) insured events that have occurred abroad, which were caused by the use of a vehicle normally based in Estonia.

 (2) The composition of the data kept in the register, persons authorised to receive data from the database, and the conditions of and procedure for presentation, issue and preservation of data are set out in the statutes of the register.

§ 74.  Insurer’s obligation to submit data

 (1) The insurer must submit to the register data about:
 1) concluded contracts and policies issued in confirmation thereof;
 2) withdrawal from, cancellation or amendment of contracts;
 3) receipt of reports on insured events and registration of insured events by the insurer;
 4) the insurer’s decisions to compensate or refuse to compensate for damage;
 5) recovery claims filed by the insurer;
 6) vehicles destroyed due to insured events.

 (2) The representative must submit to the register data about insured events that have occurred in Estonia and whereby the represented insurer is required to compensate for damage.

 (3) The representative of a foreign insurer must submit to the register data about insured events that have occurred abroad and whereby the representative is engaged in identifying damage and compensating for damage on behalf of the represented foreign insurer.

 (4) The composition of the data submitted to the register on the basis of this section and the conditions of and procedure for submission of data are set out in the statutes of the register.

 (5) The exchange of data between the register and the data submitters specified in this section is not organised via the data exchange layer of the information system of the state.

§ 74¹.  Fund’s obligation to submit data

  The fund must submit to the register data about:
 1) the contracts specified in subsection 3 of § 13 of this Act and policies issued in confirmation thereof;
 2) automatic motor insurance;
 3) withdrawal from, cancellation or amendment of the contracts specified in subsection 3 of § 13 of this Act;

 (4) the traffic accidents reported to it, including through the digital traffic accident report system administered by the fund;
 5) the decisions to compensate or refuse to compensate for damage;
 6) recovery claims filed by the fund;
 7) vehicles destroyed due to insured events.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 75.  Data exchange with other registers

  [RT I, 17.12.2015, 1 – entry into force 01.07.2016]

 (1) The processor of the motor register submits to the register data contained in the databases of the motor register specified in clauses 1 and 3 of subsection 1 of § 174 of the Road Traffic Act.

 (2) The authorised processor of the police information system submits to the register data about uninsured vehicles that have been engaged in traffic, wanted vehicles, and traffic accidents and reports of traffic accidents registered by the police.

 (3) The processor of the Estonian population register submits to the register data on policyholders, vehicle owners, authorised users, users, injured parties and drivers who caused insured events as specified in clauses 1–4, 6–9 and 14 of subsection 1 of § 21 of the Population Register Act.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

 (4) The processor of the register of the vehicles of the Defence Forces and the Defence League submits data to the register in accordance with the procedure established on the basis of subsection 2 of § 185 of the Road Traffic Act.

 (5) The processors of the commercial register and the register of non-profit associations and foundations submit to the register general data about legal persons entered in the commercial register or the register of non-profit associations and foundations.

 (6) The registrar of the national register of state and local agencies submits to the register the names, registry codes and addresses of the agencies.

 (7) [Repealed – RT I, 29.06.2024, 2 – entry into force 15.07.2024]

 (7¹) For the purpose of identifying the existence and scope of a performance obligation of the insurer in relation to the compensation for incapacity for work, the insurer has the right to obtain the following data from the database of the Estonian Unemployment Insurance Fund:
[RT I, 07.03.2023, 5 – entry into force 01.01.2024]
 1) data of the person requesting assessment of work ability and work ability allowance;
 2) expert assessment data given upon assessment of work ability;
 3) data of a decision on assessment of work ability;
 4) data of a request for assessment of work ability;
 5) data of granted and paid work ability allowance and of allowance, pension or other monetary compensation paid by another state for the same purpose as the work ability allowance.
[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

 (7²) A person who has completed medical training has the right to process the data of the health information system specified in subsection 4 of § 7 of the Work Ability Allowance Act, which is contained in an expert opinion given upon assessment of work ability specified in clause 2 of subsection 7¹ of this section.
[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

 (8) The processors of the registers specified in subsections 1–3, 5, 6 and 7¹ of this section and the registrar submit to the register data via the information systems’ data exchange layer established on the basis of clause 5 of subsection 1 of § 43⁹ of the Public Information Act.
[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

 (9) The composition of the data submitted to the register on the basis of subsection 2 of this section and the conditions of and procedure for submission of data are set out in the statutes of the register.

§ 76.  Issue of data to injured party, policyholder and other persons

  [RT I, 29.06.2024, 2 – entry into force 15.07.2024]

 (1) Within seven years as of the occurrence of an insured event, the controller of the register must issue to the injured party the following register data at the request of the latter:
 1) the name of the insurer of the person who caused damage;
 2) the number of the policy certifying the contract concluded with the insurer of the person who caused damage and the term of validity of the insurance cover;
 3) the name and address of the settler of the insurer’s cross-border claims appointed by the insurer in the domicile of the injured party;
 4) the name of the authority or person responsible for the payment of compensation in the event of damage caused by the use of a vehicle specified in clause 3 of § 5 of this Act if the liability arising from the damage caused by the use of the vehicle was not insured.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

 (2) In addition to the data specified in subsection 1 of this section, the controller of the register must, within seven years as of the occurrence of the insured event, issue to the injured party or another person involved in the insured event the data kept in the register about the person entered in the register as the owner or authorised user of the vehicle by the use of which the insured event was caused, provided that the injured party or another person involved in the insured event requests such data and has a legitimate interest therein.

 (3) In the events specified in subsections 1 and 2 of this section, the processor of the register will immediately issue the data to the injured party or another person involved in the insured event.

 (4) At the request of the policyholder, the controller of the register will issue to the policyholder a certificate of the occurrence or absence of insured events caused by the policyholder or by the use of a vehicle related to the policyholder (hereinafter also claims-history statement). The form of the claims-history statement, the requirement to sign it or submit it in a format that can be reproduced in writing and the composition of the data of the insured event to be indicated on the statement correspond to the template established by the implementing act of the European Commission specified in Article 16 of Directive 2009/103/EC of the European Parliament and of the Council.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

 (5) The certificate specified in subsection 4 of this section must reflect data of at least five years preceding the submission of the request.

 (6) The controller of the register will issue the certificate specified in subsection 4 of this section within seven calendar days as of the receipt of the request.

 (7) The controller of the register cooperates with the information centres of other contracting states as referred to in Article 23 of Directive 2009/103/EC of the European Parliament and of the Council and with the authorities performing the functions of compensation bodies of other contracting states and ensures that they have access to the information necessary for the performance of their functions, including information on vehicles dispatched in accordance with Article 23 of that Directive.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

§ 77.  Access to register data by insurer and other persons

 (1) The controller of the register must grant the insurer access to the data that is necessary for assessing the underwriting risk, conclusion of a contract, performance and ensuring the performance of a contract, and identifying the existence and extent of the obligation to compensate for damage, including identifying insurance fraud. Such data means, among other things, data:
 1) about contracts and about policies issued to certify the contracts;
 2) about insured events and filed claims for damage;
 3) submitted to the register on the basis of § 75 of this Act;
 4) with the help of which a connection between the injured party and the insured person is identified via third parties as well as insured events, vehicles and contracts concluded with regard to vehicles related to them.

 (2) The insurer must ensure that all the data that the insurer has access to is processed solely for the purpose set out in subsection 1 of this section.

 (2¹) In addition to the provisions of subsection 1 of this section, the fund has the right to process data for filing a recovery claim, implementing the automatic motor insurance, calculating the own funds of the fund, carrying out motor insurance statistics and surveys, exercising supervision over the performance of the insurance obligation and performing the tasks assumed under the administrative contract specified in § 69 of this Act.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

 (3) On its website, the controller of the register ensures the possibility to make public queries through which the following data can be verified with the register based on the registration plate or vehicle identification number:
 1) contracts concluded with regard to the vehicle and policies issued in confirmation thereof;
 2) an insured event involving the vehicle.

Chapter 8 State Supervision and Liability  

§ 78.  Supervisory authorities

  State supervision over the existence of motor insurance provided in this Act is exercised by police officers, assistant police officers and the fund.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 79.  Special measures of state supervision

  To exercise the state supervision provided for in this Act, police officers, assistant police officers and the fund may take special measures of state supervision provided for in § 30 of the Law Enforcement Act on the grounds and in accordance with the procedure set out in the Law Enforcement Act.

§ 80.  Specifics of state supervision

 (1) In the event of crossing the external border, a police officer or an assistant police officer checks the existence of motor insurance of only those vehicles entering Estonia, which are not normally based in a contracting state.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

 (2) A police officer or an assistant police officer does not allow a vehicle with no valid motor insurance to enter Estonia.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

 (3) A vehicle normally based in a contracting state or a third country vehicle entering Estonia via a contracting state or entering a contracting state via Estonia may not be checked solely for the purpose of verifying the existence of motor insurance.
[RT I, 29.06.2024, 2 – entry into force 01.12.2024]

§ 81.  Driving of uninsured vehicle

  The driving of a vehicle that does not have motor insurance or the failure by the driver of a vehicle normally based abroad or of a vehicle not subject to registration in the motor register to submit a document certifying the existence of motor insurance to a police officer or assistant police officer exercising state supervision
is punishable by a fine of up to 100 fine units.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

§ 81¹.  Misdemeanours adjudicated by way of alternative procedure and applicable deterrent fine rates

 (1) Upon commencement of misdemeanour proceedings, the body conducting extra-judicial proceedings applies the alternative procedure in the event of the necessary elements of misdemeanour provided for in § 81 of this Act.

 (2) In the event of a misdemeanour provided for in subsection 1 of this section, a deterrent fine of 160 euros is imposed.
[RT I, 29.06.2024, 1 – entry into force 01.01.2025]

§ 82.  Proceedings

 (1) [Repealed – RT I, 12.07.2014, 1 – entry into force 01.01.2015]

 (2) The Police and Border Guard Board is the body that conducts proceedings in the misdemeanour cases provided for in § 81 of this Act.

Chapter 9 Implementing Provisions  

§ 83.  Wording of legislation applicable to insured event

  [RT I, 29.06.2024, 2 – entry into force 15.07.2024]

 (1) The Motor Insurance Act and the delegated act of the European Commission specified in subsection 4 of § 25 of this Act in force at the time of occurrence of an insured event apply to the insured event, taking into account the specifications set out in this section.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

 (2) If the insured event occurs before 1 July 2016 and a person submits the first request for the compensation for incapacity for work on 1 July 2016 or later or the insured event occurs before 1 July 2016 and the person submits the first request for the compensation for incapacity for work before 1 July 2016, but the loss of the work ability has not been identified as at 1 July, the provisions of subsections 5–7 of § 28, §§ 28¹ and 30, subsections 6 and 7 of § 31 and § 75 of the wording of this Act that will enter into force on 1 July 2016 applies.

 (3) If the insured event occurs before 1 July 2016, the provisions of subsections 5–7 of § 28, §§ 28¹ and 30, subsections 6 and 7 of § 31 and § 75 of the wording of this Act that will enter into force on 1 July 2016 apply to periodical payments of the compensation for incapacity for work and to the repeat identification of the scope of the permanent loss of the work ability paid after 1 July 2016.

 (4) The compensation for incapacity for work granted before 1 July 2016 is paid on the basis of the Motor Insurance Act in force at the time of occurrence of the insured event until the expiry of the permanent incapacity for work identified by the Ministry of Social Affairs.
[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

§ 84.  Law applicable to contract

 (1) Contracts concluded before the entry into force of this Act will remain in force until the date of expiry indicated in the policy issued in confirmation of the contract.

 (2) Contracts on the basis of which no valid policy has been issued will terminate upon entry into force of this Act. In the case of causing an insured event within 12 calendar months after the entry into force of this Act, the insurer under the last contract must compensate the injured party for damage on behalf of the policyholder.

 (3) Contracts concluded with regard to vehicles that were temporarily deleted from the motor register before the entry into force of this Act will not terminate on the ground set out in clause 1 of subsection 1 of § 21 of this Act.

 (4) A contract concluded before the entry into force of this Act can be terminated or amended after the entry into force of this Act only in accordance with the procedure provided for in this Act.

§ 85.  Specifications of resolution of complaints submitted to insurance dispute committee

  Complaints submitted to the insurance dispute committee before the entry into force of this Act will be heard by the committee in accordance with the procedure for resolution of disputes set out in the Motor Insurance Act in force before the entry into force of this Act.

§ 85¹.  Person having permanent incapacity for work

  Regarding a person who has been identified to have permanent incapacity for work based on the State Pension Insurance Act, the criterion of incapacity for work or partial incapacity for work set out in § 28 of this Act is deemed to be met.
[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

§ 85².  Transitional provisions for wording of this Act that entered into force on 15 July 2024

 (1) Section 13¹ and subsection 4 of § 76 of this Act apply as of the date of application of the implementing act of the European Commission specified in Article 16 of Directive 2009/103/EC of the European Parliament and of the Council. Until the date of application of the said act of the European Commission, the wording of subsection 4 of § 76 of this Act in force until that date applies.

 (2) Section 50¹, clauses 9–11 of § 57, subsection 7¹ of § 69 and §§ 71¹–71³ of this Act apply as of the date of entry into force of the agreement concluded on the basis of Article 10a(13) and Article 25a(13) of Directive 2009/103/EC of the European Parliament and of the Council between the authorities performing the functions of compensation bodies of contracting states or as of the date of application of the delegated act of the European Commission elaborating the said Articles of the Directive, if the agreement enters into force or the delegated act applies later than on 15 July 2024.

 (3) The fund publishes on its website information on the date on which the application of the acts of the European Commission and the entry into force of the agreement specified in subsections 1 and 2 of this section begins.
[RT I, 29.06.2024, 2 – entry into force 15.07.2024]

§ 86. – § 94. [Omitted from this text.]

§ 95.  Entry into force of Act

 (1) This Act will enter into force on 1 October 2014.

 (2) Clause 2 of subsection 1, subsections 2 and 3 of § 35 and §§ 41, 42 and 58 of this Act will enter into force on 1 January 2015.

 (3) Section 88 of this Act will enter into force on 1 July 2014.

¹ Directive 2009/103/EC of the European Parliament and of the Council relating to insurance against civil liability in respect of the use of motor vehicles, and the enforcement of the obligation to insure against such liability (OJ L 263, 7.10.2009, p. 11–31), amended by Directive (EU) 2021/2118 (OJ L 430, 2.12.2021, p. 1–23). [RT I, 29.06.2024, 2 – entry into force 15.07.2024]

Annex Classification of Health Damage and Bodily Injuries by Degrees of Severity
[Repealed - RT I, 29.06.2024, 2 - entry into force 01.12.2024]