# Motor claims in Estonia: a guide for foreign insurers URL: https://insurancelawestonia.ee/guides/motor-claims-estonia-foreign-insurers/ Author: Dr Olavi-Jüri Luik, Partner, Head of Insurance Law, attorney at law (Advokaadibüroo WIDEN OÜ) Last updated: 2026-11-09 > Estonian MTPL for foreign insurers: Green Card, Council of Bureaux, the Estonian Traffic Insurance Fund, claims representatives, deadlines, recourse. Every year, foreign-registered vehicles cause and suffer accidents in Estonia, and Estonian vehicles do the same abroad. A foreign motor insurer may be involved as the insurer of the liable vehicle, as a property insurer seeking recovery, as an insurer writing Estonian MTPL on a freedom-of-services basis, or as a reinsurer. This guide explains the Estonian motor insurance system from that perspective. It is based on the Motor Insurance Act (*liikluskindlustuse seadus*, LKindlS) as in force since 1 January 2025, which implements the EU Motor Insurance Directive 2009/103/EC.[^1] **Figure 1. Motor accident claims in Estonia: whom to claim against** Three situations: the liable vehicle is insured, the liable vehicle is uninsured, or the liable vehicle is not identified. - **The vehicle is insured** (Statutory rule) - The claim may be made against the liable driver's motor insurer (Motor Insurance Act (liikluskindlustuse seadus, LKindlS) § 35(1)). - Damage to the vehicle and to other property in the same event may also be claimed from the injured party's own motor insurer within 30 calendar days of the event, if the event occurred in Estonia and neither vehicle is based abroad (§ 35(2), § 41(1)–(2)). - The same damage cannot be claimed from both insurers (§ 35(1¹)). - (Exception) If the own insurer gives notice by the 14th calendar day after the claim that it refuses under § 41(3) (the circumstances are unclear), the claim may be brought against the liable driver's insurer (§ 42). - **The vehicle is uninsured** (Statutory rule) - The Estonian Traffic Insurance Fund pays within the limits of the Act (LKindlS § 45(1)–(2)). - **The vehicle is not identified** (Statutory rule) - The Fund pays subject to statutory limits (LKindlS § 46(1)). - Damage to vehicles is generally not covered, unless the same event caused at least serious bodily injury, serious damage to health or death; deductible EUR 250 (§ 46(3) point 1, § 46(4)). - Other property: deductible up to EUR 150; nothing is paid if the unknown vehicle did not touch the property (§ 46(3) point 3, § 46(5)). Where there is motor own damage (kasko) cover, the loss may also be claimed from that insurer under the policy. Legal basis: [LKindlS § 35, §§ 41–42, 45–46](https://www.riigiteataja.ee/akt/129062024012). Statutory text checked against the version in force on 9 November 2026. ## 1. The system in brief - **Compulsory cover.** The possessor of a vehicle subject to the insurance obligation must have MTPL cover. The insured event is causing damage to a third party with a covered vehicle in the course of using the vehicle as a means of transport (LKindlS § 8 lg 1).[^1] - **Mandatory rules.** Agreements deviating from the LKindlS or from the Law of Obligations Act (*võlaõigusseadus*, VÕS) to the detriment of the policyholder, insured person or injured party are void unless the law permits the deviation (LKindlS § 2). - **Liability basis.** The injured party may claim compensation from the insurer if the insured person is liable to the injured party (LKindlS § 23 lg 1).[^1] The 2024 amendments (in force since 1 December 2024) repealed the earlier statutory list of liability situations in § 23 lg 1 p 1–3 and § 23 lg 2; liability now follows the general rules, in particular the strict liability of the direct possessor of a motor vehicle under VÕS § 1057 and fault-based liability under VÕS § 1043.[^2] - **Applicable tort law.** Unless the Rome II Regulation provides otherwise, compensation is governed by the law of the country where the insured event occurred (LKindlS § 8 lg 3).[^1] ## 2. The Estonian Traffic Insurance Fund (LKF) The Estonian Traffic Insurance Fund (*Liikluskindlustuse Fond*, LKF) is a non-profit association that performs the tasks assigned by the LKindlS and by an administrative contract with the responsible minister (LKindlS § 10 lg 1). It is a member of the **Council of Bureaux** and acts as the **Green Card bureau** in Estonia (§ 10 lg 2).[^1] Fund membership is regulated in LKindlS § 70; an insurer from another EEA state that wishes to write Estonian MTPL on a freedom-of-services basis must show that it has become a member of the Fund and must appoint a representative in Estonia with authority to handle and settle motor claims (Insurance Activities Act, *kindlustustegevuse seadus*, KindlTS, § 41 lg 2).[^3] For foreign insurers the Fund is relevant in four roles: 1. **Green Card bureau**: handling accidents caused in Estonia by vehicles from Green Card countries and guaranteeing claims where no correspondent is appointed (LKindlS § 50 lg 2). 2. **Compensation body**: handling claims of Estonian residents injured abroad where the foreign insurer has no Estonian representative or fails to respond within three months (§ 48 lg 3), and where the vehicle or insurer cannot be identified (§ 49). 3. **Guarantee fund**: compensating damage caused by uninsured or unidentified vehicles in Estonia (§§ 45–46) and damage where the insurer is subject to winding-up or reorganisation proceedings (§ 50¹). 4. **Register keeper**: maintaining the motor insurance register used to identify the insurer of a vehicle (§§ 72–77).[^1] The Fund publishes on its website the currently applicable sums insured and the list of correspondents (§ 25 lg 5, § 50 lg 4). ## 3. Sums insured and heads of damage Unless a higher amount is agreed, the statutory sum insured per insured event, irrespective of the number of injured parties, is set in LKindlS § 25 lg 1 at EUR 1,300,000 for property damage and EUR 6,450,000 for death, bodily injury or damage to health. These amounts are indexed every five years under the Commission's delegated acts adopted under art 9(2) of Directive 2009/103/EC, and the indexed amount applies from the date set in the Commission act (§ 25 lg 4).[^1] Readers should therefore check the currently applicable figures published by the Fund. Where there are several injured parties and claims exceed the sum insured, the insurer pays them proportionally (§ 25 lg 2). The Act regulates compensation for property damage (§ 26), incapacity benefits (§§ 28–30), non-pecuniary damage in cases of injury to health (§ 32) and damage that is not compensated (§ 33). Other heads of loss, including loss of maintenance, are governed by Chapter 7 of the Law of Obligations Act, subject to the special rules of the Motor Insurance Act (§ 24). For accidents in Estonia caused by vehicles normally based in another EEA state, the injured party benefits from the higher of the Estonian minimum and the minimum of the state where the vehicle is based (§ 50 lg 3).[^1] ## 4. Accidents in Estonia caused by foreign vehicles **Correspondent system.** If an accident in Estonia is caused by a vehicle whose liability is insured by a foreign insurer, the insurer's **representative in Estonia (correspondent)** handles and pays the claim on behalf of the insurer (§ 50 lg 1). If the foreign insurer has no correspondent, the Fund compensates the damage and later settles with the foreign bureau (§ 50 lg 2).[^1] **Practical implications for foreign insurers:** - Appoint a reliable Estonian correspondent with authority to settle, and ensure that it applies Estonian law and Estonian claims standards (including the deadlines in § 39). - Expect claims in Estonian; reports to the foreign insurer will usually be in English. - Liability is assessed under Estonian law (Rome II art 4 and LKindlS § 8 lg 3), including the strict liability of the vehicle possessor under VÕS § 1057 and the Estonian rules on contributory negligence.[^2] **Deadlines.** The insurer (and its correspondent) must complete all necessary procedures within a reasonable time and at the latest on the **30th calendar day** after notification of the insured event (§ 39 lg 1). If this is impossible for a good reason beyond its control, the insurer must inform the injured party in advance, explain the reason and state the expected completion date (§ 39 lg 2). Where civil, criminal, misdemeanour or conciliation proceedings concerning the accident are pending and their findings are material, the period is extended accordingly, but this is presumed not to be the case (§ 39 lg 4) and the insurer must justify the extension in writing within the 30-day period (§ 40 lg 2). Any full or partial refusal must be communicated in a form reproducible in writing (§ 40 lg 1).[^1] ## 5. Estonian residents injured abroad If an Estonian resident is injured in another EEA state or Green Card country by a vehicle insured in an EEA state, and the insurer is identified, the injured party may claim against the insurer **through its Estonian claims representative**, who must investigate and take a reasoned decision promptly and at the latest within three months (LKindlS § 48 lg 1–2). The Fund acts as compensation body where the insurer has no Estonian representative or has not paid or given a reasoned refusal within three months (§ 48 lg 3), unless the injured party has already sued the insurer (§ 48 lg 4). If the Fund receives the claim and the insurer or its representative does not take a reasoned decision within two months, the Fund itself must establish the facts and decide (§ 48 lg 6). The Fund's obligations are governed by the agreement of 29 April 2002 between compensation bodies under art 24(3)(a) of Directive 2009/103/EC (§ 48 lg 7).[^1] Where the vehicle or its insurer cannot be identified within two months, the Estonian resident may claim against the Fund, which must pay or give reasons within two months (§ 49). Estonian MTPL insurers must likewise appoint claims representatives in every other EEA state (§ 51).[^1] ## 6. Direct claims settlement with the injured party's own insurer A distinctive Estonian feature is the injured party's option to claim property damage from **its own MTPL insurer**. The injured party may choose between the insurer of the vehicle that caused the damage and the insurer of its own vehicle (§ 35 lg 1); it may not claim from both, nor withdraw a claim and redirect it (§ 35 lg 1¹), unless the Act provides otherwise: where the injured party's own insurer refuses under § 41 lg 3 and gives notice within 14 calendar days, the claim may be presented to the liable driver's insurer (§ 42 lg 1–2). A claim against its own insurer must be presented within **30 calendar days** of the insured event (§ 35 lg 2) and covers damage to the vehicle and other property damaged in the same event (§ 41 lg 1). It is excluded where either vehicle is normally based abroad or the event did not occur in Estonia (§ 41 lg 2), and the own insurer may refuse if the circumstances are unclear, including where the parties and insurers cannot agree on liability (§ 41 lg 3).[^1] The insurer of the liable vehicle must reimburse the injured party's insurer for the compensation and reasonable handling expenses at the latest on the 30th calendar day after the request, unless the insurers have agreed otherwise (§ 58 lg 2–3), and the injured party's insurer must pass on all information about the event (§ 58 lg 4). A decision to refuse compensation is binding also on the other insurer against which the claim could have been brought (§ 40 lg 3).[^1] For foreign-plated vehicles this system does not apply; the claim goes to the correspondent. ## 7. Choice between MTPL and voluntary cover If the injured party can claim both under MTPL and under a voluntary policy (for example its own motor own-damage cover), it may choose on which basis to claim, unless the voluntary policy provides otherwise (§ 34 lg 1), and it may always sue the person who caused the damage as a joint debtor (§ 34 lg 2).[^1] An own-damage insurer that has paid acquires the insured's claim against the liable party under VÕS § 492 and may present it to the liable vehicle's MTPL insurer. See the [subrogation guide](https://insurancelawestonia.ee/guides/subrogation-recovery-estonia). ## 8. Recourse MTPL insurers may seek recourse from the driver who caused the event, among other cases, where the driver caused it intentionally, unlawfully and culpably left the scene, drove a vehicle in unlawful possession, drove while intoxicated or consumed alcohol or drugs immediately after the event, or breached the conditions of a special-purpose contract (§ 53 lg 1). Recourse is also available where the driver caused the event by exceeding the speed limit by 41 km/h or more, wilfully ignoring a stop signal of a traffic supervisor, or driving despite a driving ban or disqualification; in these cases causation is presumed (§ 53 lg 2–3). Persons liable to recourse are jointly and severally liable, and recourse claims are time-barred three years after payment (§ 59 lg 1, 3).[^1] ## 9. Foreign insurers writing Estonian MTPL An insurer from another EEA state may write Estonian MTPL on a freedom-of-services basis after notification through its home supervisor to the Estonian Financial Supervision Authority (*Finantsinspektsioon*), provided it also submits the Fund's confirmation of membership and the name and address of its Estonian claims representative (KindlTS § 41 lg 1–2). The representative's activity does not constitute a branch (§ 41 lg 3).[^3] The insurer must provide data to the motor insurance register and comply with Estonian contractual rules on Green Cards, territorial cover and premiums: cover applies in all contracting states without separate agreement, and no additional premium may be charged for cover in other contracting states (LKindlS §§ 15, 18).[^1] ## 10. Checklist for foreign motor insurers 1. Identify the role: liable vehicle's insurer, own-damage insurer, Green Card insurer or FOS writer. 2. For accidents in Estonia: correspondent appointed? Deadlines of LKindlS § 39 running from notification. 3. Apply Estonian liability law (VÕS §§ 1043, 1057) and contributory negligence. 4. For Estonian residents' claims abroad: respond through the Estonian representative within three months to avoid intervention of the Fund. 5. Document recourse grounds under LKindlS § 53 early and calendar the three-year limitation. 6. Check the current indexed sums insured on the Fund's website. ## Related pages - [MTPL and Green Card claims in Estonia](https://insurancelawestonia.ee/guides/mtpl-green-card-claims) - [Supreme Court: motor third-party liability](https://insurancelawestonia.ee/supreme-court/motor-third-party-liability) - [Insurance organisations in Estonia, including the Traffic Insurance Fund](https://insurancelawestonia.ee/organisations) - [Motor Insurance Act commentary (2nd ed., 2026)](https://insurancelawestonia.ee/blog/2026-07-01-research-motor-insurance-act-commentary-2026) - [Direct action against liability insurers in Estonia](https://insurancelawestonia.ee/guides/direct-action-liability-insurers-estonia) - [Insurance conciliation in Estonia](https://insurancelawestonia.ee/guides/insurance-conciliation-estonia) ## References [^1]: Motor Insurance Act (liikluskindlustuse seadus, LKindlS) §§ 2, 8, 10, 15, 18, 23, 25–35, 39–41, 45–51, 53, 58, 59, 70, 72–77. RT I, 29.06.2024, 12 (in force 01.01.2025). Estonian: ; English: . [^2]: Law of Obligations Act (võlaõigusseadus, VÕS) §§ 492, 1043, 1057. RT I, 20.06.2026, 18 (in force 01.09.2026). Estonian: ; English: ; Regulation (EC) No 864/2007 (Rome II), art 4. . [^3]: Insurance Activities Act (kindlustustegevuse seadus, KindlTS) § 41. RT I, 11.07.2026, 140 (in force 21.07.2026). Estonian: ; English: .