30Traffic insurance concerns us all – every driver, pedestrian and cyclist. Whether it’s a minor dent in the parking lot or a more serious accident on the highway, insurance is what helps cover the damage and ensures that the victim doesn’t have to face financial hardship as a result of the accident.
The new revision of the Road Insurance Act, which entered into force on July 15, 2024, brought about a number of important changes that directly affect both vehicle owners and insurers. The aim of the law reform is to harmonize European traffic insurance rules and offer better insurance coverage to both parties to a traffic accident.
They rose with the new law traffic insurance benefit limits and the scope of insurance coverage expanded. This ensures that, in the event of large claims, victims have better opportunities than before to fully recover their costs. The management of insurance contracts has also become more user-friendly – the process of automatic renewal of the insurance contract is now more clearly regulated so that policyholders are better informed about the end of the insurance period and the costs of the new period.
The changes will take effect in two stages, the first part on July 15 and the second on December 1.
Higher compensation limits and better financial protection
One of the most important changes to the Motor Insurance Act is the increase in compensation limits, which ensures greater financial protection in the event of an accident. Due to the increase in the cost of living, the previous limits were no longer sufficient. Especially in cases where more than one vehicle was involved in the accident or several people were injured.
With the new law, the limit of the insurance amount for property damage compensation was raised from EUR 1,200,000 to EUR 1,300,000 per case. This step helps ensure better financial protection for policyholders and victim(s) in case of larger claims. In the case of causing death, health damage and bodily injury, the new threshold is 6,450,000 euros per case instead of the previous 5,600,000 euros. It should be noted here that the limit valid at the time of the accident is applied in the case even if the contract was concluded before the law amendment entered into force.
Higher sums of insurance offer better protection to road accident victims and their families, even in cases involving serious accidents and/or multiple claims. Situations where one major claim covers the entire property or personal injury compensation limit will be reduced, leaving other victims without compensation.
The Road Insurance Act also specifies which institution is responsible for paying compensation in the event that the insurer becomes insolvent. Previously, it was regulated differently in European countries, and the injured party could be left without the necessary protection. The Estonian system is user-friendly, as the Estonian Traffic Insurance Fund guarantees payment of compensation even if the insurance provider registered in Estonia becomes insolvent. In addition, the Estonian victim is protected even if the foreign insurance company from which compensation is requested is insolvent. In such a situation, the Estonian Traffic Insurance Fund pays compensation to the victim and later recovers this amount from the guarantee fund of the respective country.
Updating green card filing requirements
The new law specifies the requirements for submitting a green card in Estonia. It is now allowed for a driver registered in a foreign country to submit a green card electronically in Estonia. A green card is a special type of international policy that confirms that the vehicle has valid traffic insurance outside the country of residence.
Insurance contract reminder and automatic renewal
The requirement still applies if the vehicle is registered in the traffic register, then the vehicle must have a valid traffic insurance contract. The law also retained a clause that a vehicle registered in the register may be without traffic insurance for up to 12 calendar months from the validity of the last contract, if the vehicle does not participate in traffic and it is guaranteed that it will not cause damage. After this period has passed, compulsory insurance, or automatic traffic insurance, will be valid.
The amendment to the law makes the process of automatic renewal of the insurance contract more transparent and better regulated. Insurers are obliged to provide the cost of the previous insurance period in the next period’s offer, so that it is easier for the policyholder to compare the new offer. This gives the policyholder the opportunity to decide whether to continue the contract under the proposed conditions or to choose another insurer to take out motor insurance.
Traffic insurance also extends to scooters
Recently, electric scooters have become more and more popular, but at the same time, the number of traffic accidents related to them has also increased. Consequently, the requirements regarding the registration and insurance of these vehicles have been tightened.
From December 1, all road vehicles that move only with the help of an engine and whose design speed exceeds 25 km/h or whose design speed exceeds 14 km/h and whose mass exceeds 25 kg must be covered by compulsory road insurance. This means that if the maximum speed specified by the manufacturer of the electric scooter is over 25 km/h and the motor power exceeds 1 kW, the bike may only be used in traffic if it is registered in the traffic register, as it is no longer a light scooter. If the electric scooter is registered in the traffic register, a traffic insurance contract must also be signed for it. The requirement to take out traffic insurance will also apply to, for example, ATVs and snow sleds.
Don’t leave your vehicle insurance to chance! You can find insurance offers on the Jepp.ee portal and ensure that you are always protected. Take out traffic insurance conveniently online.
Source: online.le.ee
