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Law on Compulsory Motor Third Party Liability Insurance - CNPF

VIEWS: 3 PAGES: 33

									Translation


LAW
On Compulsory Motor Third Party Liability Insurance

No. 414-XVI as of 22.12.2006

Monitorul OficialNo.32-35/112 as of 09.03.2007

***
CONTENTS


Chapter I
GENERAL PROVISIONS
Article 1 - Application Range
Article 2 - General Definitions
Article 3 -The Subject of Compulsory Motor Third Party Liability Insurance
Article 4 - Categories of Persons Liable to Compulsory Motor Third Party
Liability Insurance
Article 5 - Requirements to the Insurer Writing Compulsory Motor Third Party
Liability Insurance
Article 6 – The Claim Representative
Article 7 – The Insured Event

Chapter II
THE CONTRACT OF COMPULSORY
MOTOR THIRD PARTY LIABILITY INSURANCE
Article 8 - Mode of Concluding Contracts of Compulsory Motor Third Party
Liability Insurance
Article 9 –The Period of Validity of the Insurance Contract
Article 10 - Insurance Contract Termination

Chapter III
INSURANCE PREMIUMS AND CLAIMS’ LIMITS
Article 11 - Insurance Premiums
Article 12 - Discounts and Increases to Insurance Premiums
Article 13 - Mode of Paying the Insurance Premium

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Article 14 - Limits of Insurer’s Liability


Chapter IV
CLAIMS INDEMNIFICATION
Article 15 - Claims Indemnified by the Insurer
Article 16 - Claims Non-indemnified by the Insurer
Article 17 - Claims Compensation to Be Paid in Case of Sufferer’s Guilt

Chapter V
CLAIMS NOTIFICATION AND VALIDITY ASCERTIAINMENT
Article 18 - Obligations of the Insured
Article 19 - Obligations of the Insurer
Article 20 - Rights and Obligations of the Sufferer
Article 21 – The Claim File/ Claims Validity

Chapter VI
INDEMNITY CALCULATION AND PAYMENT
Article 22 - Mode of Indemnity Calculation
Article 23 - Indemnity Calculation in Case of Damage or Loss of a Motor Vehicle
Article 24 - Calculation of the Motor Vehicle Value
Article 25 - Calculation of Indemnity in Case of Bodily Injury
Article 26 - Calculation of Indemnity in Case of Bodily Injury or Death of
Domestic Animals
Article 27 - Calculation of Indemnity in Case of Damage or Loss of Other
Property
Article 28 - Claim Payment
Article 29 - Recovery Procedures

Chapter VII
THE NATIONAL BUREAU OF MOTOR INSURERS
Article 30 - Setting up the National Bureau of Motor Insurers
Article 31 - Functions of the National Bureau of Motor Insurers
Article 32 - Membership in the National Bureau of Motor Insurers
Article 33 - Road Accident Victims Protection Fund
Article 34 – The Compensation Fund
Article 35 - Property of the National Bureau of Motor Insurers
Article 36 - Management Bodies of the National Bureau of Motor Insurers
Article 37 - Information about Road Accidents
Article 38 - Insurance Accounting
Article 39 - Control of Activity on Compulsory Motor Third Party Liability
Insurance

Chapter VIII

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FINAL AND TRANSITIONAL PROVISIONS
Article 40 - Transitional Provisions
Article 41 - Coming into force/ Abrogation/ Government Duties


The Parliament adopts the present organic Law.

Chapter I
GENERAL PROVISIONS

Article 1 - Range of Application

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

Article 2 - General Definitions

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

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

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

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

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

According to the present Law, trailers, semi-trailers and similar vehicles, other
self-propelled vehicles both town or non-town, both, admitted for use in


                                                                                   3
compliance with the valid legislation or registered abroad by competent authorities,
shall be an integral part of the category of motor vehicles;

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

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

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

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

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

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

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

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

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


                                                                                   4
General Regulations of the Council of Bureaux – an official document adopted
by the Assembly of the Council of Bureaux in Rethymno (Crete) on 30 May 2002,
that comprises all obligatory provisions that govern relationships between National
Bureaux of Motor Insurers of the countries – members of the International Green
Card System;

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

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

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

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

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

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

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

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

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

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


                                                                                   5
Article 4 – The Category of Persons Liable to Obtaining Compulsory Motor
Third Party Liability Insurance

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

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

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

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

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

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

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

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

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

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


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

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

Article 6 - The Claim Representative

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

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

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

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

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

Article 7 - The Insured Event

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

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

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

Chapter II
THE CONTRACT OF COMPULSORY                           MOTOR        THIRD      PARTY
LIABILITY INSURANCE

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

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

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

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

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

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

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

                                                                                    8
(7) When making the insurance contract the owner of the motor vehicle shall allow
the Insurer to inspect technical status of the motor vehicle and shall state its claim
history in the application.

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

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

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

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

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

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

Article 10 – Termination of the Insurance Contract

(1) The contract of compulsory motor third party liability shall be terminated as
follows:


                                                                                    9
a) In case of excluding the motor vehicle from the government register and/or
expropriation;
b) In case of liquidating the Insured (the legal entity) or Insured’s (physical person)
death;
c) In case of issuing final judgement by the court regarding contract termination: as
well as
d) In other cases stipulated by the legislation.

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

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

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


Chapter III
INSURANCE PREMIUMS AND CLAIMS LIMITS

Article 11 - Insurance Premiums

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

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

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

Article 12 - Discounts and Increases to Insurance Premiums

(1) The Insurer may offer discounts up to 25% of the insurance premium amount to
physical persons that have reached pension age, as well as to persons with

                                                                                    10
locomotor apparatus deficiencies that own motorcycles and cars adapted to their
abilities.

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

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

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

Article 13 - Mode of Payment of the Insurance Premium

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

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

Article 14 - Limits of Insurer’s Liability

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

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

a) MDL500, 000 for damage or loss of property independent on the number of
people suffered due to the road accident;



                                                                                  11
b) MDL350, 000 for bodily injury or death of each sufferer though no more than
MDL700,000 independent on the number of people suffered due to the road
accident.

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

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

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

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

Chapter IV
CLAIMS INDEMNIFICATION

Article 15 - Claims Indemnified by the Insurer

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

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

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

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

(3) Family members of the Insured, car user or any other persons whose third party
liability has occurred as a result of the road accident and has been covered by

                                                                                    12
compulsory motor third party liability insurance shall not be excluded from the list
of beneficiaries of insurance indemnity paid for bodily injuries.

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

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

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

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

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

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

Article 16 - Claims Non-Indemnified by the Insurer

The Insurer shall not indemnify:

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

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

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

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


                                                                                   13
e) Damage related with environment contamination as a result of an accident;

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

g) Property cost decrease after repair;

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

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

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

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

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

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

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

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

Chapter V
CLAIMS NOTIFICATION AND DETERMINATION

Article 18 - Obligations of the Insured


                                                                                   14
In case of occurrence of a road accident the Insured or car user:

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

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

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

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

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

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

Article 19 - Obligations of the Insurer

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

a) Open the claim file;

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

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



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

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

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

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

Article 20 - Rights and Obligations of the Sufferer

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

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

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

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

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

(6) The sufferer or his legal representative shall allow, within the terms specified in
article 19, paragraph (1) c), access of the Insurer or his representative to the

                                                                                    16
property damaged as a result of the road accident so that the Insurer might have
possibility to determine the actual damage amount.

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

       Article 21 - Claim File/Claim Validity

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

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

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

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

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

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

d) The report on damage validity;

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

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

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

h) Documents confirming existence of bodily injuries or death;


                                                                                   17
i) Documents specified in article 25, when necessary;

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

k) Copies of accounting documents confirming indemnity payment;

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

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

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

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

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

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

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


Chapter VI
INDEMNITY CALCULATION AND PAYMENT

Article 22 - Mode of Indemnity Calculation


                                                                                   18
(1) Indemnity amount is calculated on the base of written consent between the
Insured, the sufferer or his legal representative and the Insurer, or in case of failure
to come to an agreement, on the base of the final court judgement that came into
effect.

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

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

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

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

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

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

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

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

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

                                                                                     19
c) When the criminal case may not be ceased through parties’ reconciliation,
however consent has been given to determine indemnity on the base of the
agreement concluded between the Insured, sufferer and Insurer.

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

(8) Indemnity amount includes the following expenses:

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

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

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

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

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

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

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

                                                                                   20
Article 23 - Indemnity Calculation in Case of Damage or Loss of a Motor
Vehicle

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

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

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

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

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

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

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

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

(8) In case of lack of prices on some car component parts applied by the
specialised service, their primary cost shall be established on the base of prices


                                                                                    21
given in spare parts catalogues and provided the latter are absent, - prices are used
that are analogous to those for car component parts of similar motor vehicles.

Article 24 – Calculation of the Motor Vehicle Value

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

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

Article 25 - Calculation of Indemnity in Case of Bodily Injury

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

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

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

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

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

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

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



                                                                                  22
(3) In case of death of the third party determination of the amount of his insurance
indemnity shall be exercised through the agreement between the Insured, sufferers’
heirs – in- law or their legal representative and Insurer.

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

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

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

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

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

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

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

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

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


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

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

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

Article 28 - Claim Payment

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

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

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

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

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

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

Article 29 - Recovery Procedures

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

a) The road accident has been made intentionally;

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

                                                                                    24
c) The person responsible for occurrence of the road accident lacks the driving
license of the appropriate category;

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

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

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

g) The road accident has been made on time when the person that committed the
malicious crime attempted to elude pursuit.

Chapter VII
THE NATIONAL BUREAU OF MOTOR INSURERS

Article 30 - Setting up the National Bureau of Motor Insurers

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

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


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

Article 31 - Functions of the National Bureau of Motor Insurers

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



                                                                                  25
a) Supervision of the mode of implementing by its members the rights and
obligations arising from the contracts of external compulsory motor third party
liability insurance;

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

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

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

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

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

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

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

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

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

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

(2)The National Bureau shall:

a) Systematically advise the State Insurance Supervisory Office about joining or
termination of the membership, failure of Bureau members to comply with their

                                                                                  26
obligations, about sanctions applied to them, complaints and notifications received
from other National Bureaux and about revealed cases of fraudulence;

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

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

Article 32 - Membership in the National Bureau of Motor Insurers

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

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

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

Article 33 – The Fund for Road Accident Victims Protection

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

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

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

                                                                                   27
(4) The National Bureau manages and uses means of the Fund for Road Accident
Victims Protection in conformity with provisions of the normative acts issued by
the State Insurance Supervisory Office in this field. Founding and administrative
expenses as well as those related with the use of funs means shall be covered from
its means.

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

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

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

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

Article 34 – The Compensation Fund

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

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

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

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

a) The entrance fee serves as a kind of guarantee in case of Insurer’s insolvency;
the entrance fee with the interest shall be reaid to the Insurer when terminating his

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membership in the National Bureau though after liquidating without debt the
owned portfolio on Green Card;

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

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

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

(4) In cases when the National Bureau uses money of the Compensation Fund for
purposes stipulated in paragraph (1), item a), the Insurers on behalf of which they
have been used, shall fully compensate these expenses.

 (5) The National Bureau is obliged to exercise accounting of incoming funds split
by types of contributions (entrance fees, monthly and specialised contributions)
and accounting of expenditures from the Compensation Fund as well as to
investing Fund means into profitable financial instruments, in credit institutions, in
foreign currency market instruments or in governmental securities.

Article 35 - Property of the National Bureau of Motor Insurers

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

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

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

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

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

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

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

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

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

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

Article 37 - Information About Road Accidents

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

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

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

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

(5) The Ministry of Home Affairs and the Ministry of Information Development
shall submit information necessary for developing and maintenance of the database


                                                                                  30
on compulsory motor third party liability insurance at the request of the State
Insurance Supervisory Office.

Article 38 - Insurance Accounting


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

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

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

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

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

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

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

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

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




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

Chapter VIII
FINAL AND TRANSITIONAL PROVISIONS

Article 40 - Transitional Provisions

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

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

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

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

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

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

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

(7) During the period the period specified in article 57, paragraph (4) a) of the Law
on Insurance prices for car components or parts liable to replacement in damaged

                                                                                   32
motor vehicles are established as an exception from provisions of article 23,
paragraphs (6) and (7) of the present Law, taking into account degree of their
depreciation determined in conformity with normative acts issued by the State
Insurance Supervisory Office.

Article 41 - Coming into force/ Abrogation/ Government Duties

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

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

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

(4) The Government shall within three months shall:

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

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

Marian LUPU
PARLIAMENT CHAIRMAN

Chişinău, 22 December 2006
No.414-XVI.

__________
Laws          of            the          Republic              of           Moldova
414/22.12.2006 Law on Compulsory Motor                     Third party      Liability
Insurance//Monitorul Oficial 32-35/112, 09.03.2007




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