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Payment of the largest MTPL insurance indemnity in the history of Latvia has began – the total estimated amount is 1,000,000 EUR

Basing on estimates of foreign cooperation partners, the Joint Stock Insurance Company “Seesam Latvia”, has reserved an amount of 1,000,000 EUR in the plan of disbursements, which might be an approximate amount of insurance indemnity payable for a traffic accident that occurred in Germany. This is the biggest amount of potential insurance indemnity in the history of MTPL insurance in Latvia.

Exact amount of the indemnity will be declared upon completion of the traffic accident investigation and summarizing all the costs. However, payment of the indemnity for proven and approved positions has already begun. So far, only the first transfers in amount of 11,000 euros have been made to cover the costs of various expert evaluations and to make prepayment for the medical treatment costs incurred by the injured person. Further payments will be associated with compensation for damages caused to the vehicle, compensation of the injured person's medical treatment expenses, disablement compensation and payment for services provided by the advocate representing the interests of the injured person.

The traffic accident, in which at least five motor vehicles were involved, took place in Germany in October 2009, on a high-speed motorway. And it had severe consequences – due to heavy braking, a passenger car was pressed between two trucks.

While all the vehicles involved in the accident were travelling at the speed limit, the distance between the vehicles, however, proved to be insufficient. The truck having the Czech Republic number plates was the first that braked heavily, because the driver of this truck suddenly had noticed a traffic accident that was just occurred on his way not far from his truck. A 'Renault Espace' manufactured in 2006, which was driven by a 61-year-old Austrian citizen, followed this truck, and the said passenger car was followed by a "Scania" truck, which was driven by 39-year-old trucker from Latvia. Investigators have not yet established exactly, whether the driver of the Renault Espace had or had not time enough to stop his car before the truck that travelled before him. Consequently, it is not clear whether the passenger car itself hit the truck or was pushed into the truck - the driver from the CzechRepublic does not remember whether he felt one or two bumps on the back immediately after the stop of his truck. But in any case, the "Scania" from Latvia had no time to brake, so the Renault Espace was literally flattened between the two trucks. The car driver sustained severe injuries. Doctors failed to save his leg. It had to be amputated.

The Latvian driver is not considered to be the person who caused the traffic accident, but the wrong choice of driving distance prevented him from stopping his vehicle in a critical situation. So far, the investigation is going on and the extent of his liability in this traffic accident is still being examined. This accident resulted in an irretrievably damage to another person's vehicle and serious injuries sustained by the driver of the damaged vehicle, due to which the injured person became disabled.

– Experts of the “Seesam Latvia” received information on this accident first in August 2010 from their Austrian colleagues – ten months after the accident. It should be noted that we are occasionally faced with the fact that persons who sustained injuries in accidents occurring abroad, inform the insurer first after some time. This time the event is legally very difficult - the accident occurred in Germany, severe injuries were caused to an Austrian citizen, but the trucks involved in the accident are from the Czech Republic and Latvia.

 Despite the fact that the "Scania" driver from Latvia was not directly at fault in causing the accident, and that he did not leave the scene and provided all the necessary explanations to the German police, however, just his vehicle caused severe consequences. Consequently, “Seesam Latvia”, as the insurer of his third-party liability, must undertake the liabilities specified in the MTPL insurance contract. When we received information about the insured event from our foreign colleagues, we contacted the owner of the "Scania", who was a legal entity, and asked for an explanation of what had happened, - explains Anna Celmiņa, a specialist of the Claims Department of "Seesam Latvia”.

– The approximate amount of the insurance indemnity that could be paid by "Seesam Latvia" to the injured party, was reported to us by our business partners in Austria - a company engaged in processing of foreign claims and with which we have entered into a contract on representation of our interests in this country. The amount is very high, as in many European countries including Austria and Germany there are established much higher limits for insurance claims or such claims have no limit at all. Of course, the driver was obliged to inform us about the accident immediately, as soon as it was possible for him, but in reality, this requirement is not always met. Therefore, according to the MTPL insurance law, the insurers have the right to request information from the insured person on an accident, if the insured person has failed to do so.

It should be admitted that we received information on this accident with severe consequences with delay. Unfortunately, a uniform European MTPL register is not created.  So that it happens that we receive information on an accident only when the investigation process is already in full swing. When all the accident circumstances will be clarified and the investigation will be completed, there will be adopted a final decision on the degree of liability of the Latvian vehicle driver in this accident, and there will be declared an exact amount of the insurance indemnity to be paid. However, already now, basing upon the currently estimated potential amount of insurance indemnity - 1 000 000 EUR - that has been reserved by “Seesam Latvia”, we can predict that this amount could be the biggest ever in the history of the Latvian MTPL insurance.

The capability of the AAS Seesam to guarantee payment of those high insurance costs is proven by the company's solvency capital, the amount of which already now three times exceeds the requirements of the "Solvency II” - the new supervision system of insurance companies. Requirements of the Solvency II will be binding on all European insurers from October 31, 2012. Those standards require that the insurer should be in possession of an adequate solvency capital to demonstrate the company's financial stability. This is a clear signal to customers that the insurer is able to fulfil all the obligations it has undertaken through contractual agreements.

Additional information:

Vienības gatve 87H, Riga, LV-1004, Latvia

Tel. No. +371 67 06 10 29

Fax No. +371 67 06 10 22

dace.gertnere(a)seesam.lv

http://www.seesam.lv