# 10. Motor liability insurance and cross-border accidents URL: https://insurancelawestonia.ee/insurance-law-cpd/motor-liability-and-cross-border-accidents/ Author: Dr Olavi-Jüri Luik, Partner, Head of Insurance Law, attorney at law (Advokaadibüroo WIDEN OÜ) Last updated: 2026-11-11 > CPD module 10: the MTPL insured event, whom the injured party can claim against, the Green Card and accidents in another country. Module 10 of 20 · Theme: Lines of insurance · Level: Foundation / specialist · Suggested study time: 120 minutes **In short.** This module explains the principles of compulsory motor third party liability (MTPL) insurance, whom the injured party can claim against and the checkpoints for an accident in another country. ## Learning outcomes After completing this module you will be able to: - distinguish MTPL insurance from motor own-damage (casco) insurance; - identify the possible addressee of the injured party's claim; - prepare a checklist for a cross-border motor claim. ## Key points ### Liability cover The MTPL insured event is causing damage to a third party with a vehicle subject to compulsory insurance in the course of use of the vehicle as a means of transport (LKindlS § 8(1)). The injured party may claim from the insurer if the insured person is liable to it (§ 23(1)). Damage to the at-fault driver's own vehicle is a matter for casco insurance, not MTPL. ### Whom to claim against The injured party may choose to claim from the insurer of the vehicle that caused the damage or from its own MTPL insurer (LKindlS § 35(1)); from its own insurer it may claim for damage to its vehicle and to other property damaged in the same insured event (§ 41(1)). If the injured party is also entitled to compensation under a voluntary contract (such as casco), it may choose which to claim under unless the voluntary contract provides otherwise (§ 34(1)); the claim against the person who caused the damage is preserved (§ 34(2)). ### Accidents in another country MTPL cover applies in all contracting states, and in a third country if that country is shown on the policy or the Green Card (LKindlS § 15(1), § 18(1)). An injured party resident in Estonia who suffered damage in another contracting state may claim against the foreign insurer through its Estonian representative, who must decide within three months at the latest (§ 48(1)–(2)); if the vehicle or insurer is not identified within two calendar months, the claim may be made against the Motor Insurance Fund (LKF) (§ 49(1)). ### Applicable law and direct action Compensation is governed by the law of the country where the insured event occurred unless the Rome II Regulation provides otherwise (LKindlS § 8(3); Rome II Art 4). Under Rome II Art 28 international conventions continue to apply: Latvia and Lithuania are parties to the 1971 Hague Traffic Accidents Convention and Estonia is not, so the applicable law may also depend on where the claim is decided. A direct action against the insurer is available under Rome II Art 18. ## Read before the quiz Articles on this site: - [MTPL and Green Card claims in Estonia: handling guide](https://insurancelawestonia.ee/guides/mtpl-green-card-claims) - [Motor claims in Estonia: a guide for foreign insurers](https://insurancelawestonia.ee/guides/motor-claims-estonia-foreign-insurers) - [Choice of law and jurisdiction for insurance contracts in Estonia](https://insurancelawestonia.ee/guides/choice-of-law-jurisdiction-insurance-estonia) Legal sources: - [LKindlS §§ 8, 15, 18, 23, 34–35, 41, 48–49](https://www.riigiteataja.ee/akt/LKindlS) - [Rome II Regulation (EC) No 864/2007, Arts 4, 18, 28](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32007R0864) - [Motor Insurance Directive 2009/103/EC](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32009L0103) - [Parties to the Hague Traffic Accidents Convention](https://www.hcch.net/en/instruments/conventions/status-table/?cid=81) ## Practical case *Write down your own answer before opening the suggested approach.* An Estonian driver causes a collision with a Latvian vehicle in Latvia. Both vehicles are damaged and the Latvian driver is slightly injured. Map the possible claims of the Latvian driver and of the Estonian driver and their addressees. Suggested approach Latvian driver's personal injury and property damage: claim against the Estonian driver's MTPL insurer (direct action under Rome II Art 18); for an accident in Latvia the claim is handled through the Green Card system (the local bureau or the insurer's correspondent). Compensation is generally governed by Latvian law (Rome II Art 4; in a Latvian court the Hague Convention, Rome II Art 28). Damage to the Estonian driver's own vehicle: MTPL does not cover it; check casco or, if the Latvian driver is also liable, a claim against the Latvian driver's insurer through its Estonian representative (LKindlS § 48). Collect the accident report form or police documents, photographs, witness details and both parties' insurance details. ## Self-check quiz Answer the three questions and press "Check answers". 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