Latvia expands compensation for unidentified-vehicle crashes

People whose vehicles are damaged in crashes involving an unidentified vehicle may qualify for compensation even when nobody is injured, under amendments to Latvia’s compulsory motor third-party liability insurance law passed by parliament in a final reading on Thursday, LSM reported.

The changes also allow people to claim through their own insurer in certain cases instead of contacting the insurer of the vehicle that caused the damage. This option will apply if nobody is injured and the damage to the vehicle does not exceed 50,000 euros. The new procedure is planned to take effect on July 1, 2027, and will apply to insurance contracts concluded after that date.

The amendments widen compensation eligibility when the vehicle responsible for a crash cannot be identified and nobody is injured. Compensation will be available if damage to a vehicle is serious enough to result in its authorisation to take part in road traffic being cancelled. These changes will apply to insurance cases occurring from January 1, 2027.

Currently, compensation in such unidentified-vehicle cases is paid only if someone is injured, the Latvian Motor Insurers’ Bureau said. The compensation is to be covered by the compulsory insurance Guarantee Fund.

The amendments also provide for additional funding for the Guarantee Fund when needed to pay claims and clarify how the fund is managed and supervised.