Article 6. Conclusion of Insurance Contract

1. A standard insurance contract and a frontier insurance contract shall be concluded in accordance with this Law, the Civil Code, the Law on Insurance, standard terms and conditions of a contract of compulsory insurance against civil liability in respect of the use of motor vehiclesapproved by the Bank of Lithuania (hereinafter referred to as the “supervisory institution”) and other legal acts of the Republic of Lithuania, unless otherwise provided in this Law. Insurers who conclude insurance contracts by the electronic communication shall also act in compliance with the Law of Consumer Protection. Insurers who issue Green Cards shall act also in accordance with the Regulations on Cooperation, other legal acts regulating the Green Card system, the decisions of the Council of Bureaux and shall take into account the terms and conditions of the agreements concluded between the Bureau and the national insurers’ bureaux of other states.

2. Insurers must conclude insurance contracts with persons specified in paragraph 2 of Article 4 of this Law who have submitted application in person or through their representatives and have presented all the required information and documentation necessary for the conclusion of a contract. The owner of a motor vehicle who submits an application for conclusion of an insurance contract, all the required information and documentation necessary for conclusion of a contract, when concluding an insurance contract shall be considered to be a statutory representative of the persons referred to in paragraph 2 of Article 4 of this Law. A refusal by the insurer to conclude an insurance contract may be contested in court.

3. Before concluding an insurance contract, the policyholder must provide the insurer with correct information requested by the latter and the documents necessary for the conclusion of an insurance contract. The insurer shall have the right to verify that the submitted information is accurate and correct.

4. A standard insurance contract shall be concluded where the motor vehicle is normally based in the territory of the Republic of Lithuania. A standard insurance contract shall be concluded before the registration of the motor vehicle, unless the motor vehicle concerned is already covered by insurance. Where no registration is required for a motor vehicle, an insurance contract may be concluded before the motor vehicle is put to use.

5. Where a standard insurance contract is concluded before the registration of the motor vehicle, the insurer shall, after having received the policyholder’s application and other documents necessary for the conclusion of an insurance contract, issue an insurance certificate without indicating the motor vehicle registration number, unless the registration number is known. The policyholder shall submit the insurance certificate to the body responsible for the registration of motor vehicles. The body responsible for the registration of motor vehicles shall enter the registration number into the insurance certificate presented by the policyholder and shall notify the insurer thereof within 3 working days in writing or any other equivalent form.

6. Should the policyholder wish to have, under a concluded or to be concluded standard insurance contract, insurance coverage in foreign states participating in the Green Card system, the insurer shall additionally issue a Green Card to the policyholder according to the terms and conditions of the insurance contract. If a Green Card indicates that it is valid only in the Member States of the European Union and the Swiss Confederation, such Green Card shall be issued to the policyholder free of charge.

7. A group insurance contract may be concluded with the farmers of farms registered in the manner established in the Law on the Farmer’s Farm and with other agricultural economic entities covered by the Law on Agricultural and Rural Development. A group insurance contract shall be concluded with respect to several motor vehicles to be covered by a single insurance certificate. A group insurance contract may be concluded with respect to five motor vehicles at the most, with only one of them being a passenger car. A group insurance contract shall be subject to all the terms and conditions applied to a standard insurance contract as provided in this Law.

8. A frontier insurance contract shall be concluded where the user intends to participate in the road traffic of a Member State of the European Union with a motor vehicle that is normally based within the territory of a foreign state (except the exceptions specified in this Law), if the user of such motor vehicle does not have any other contract of compulsory insurance against civil liability in respect of the use of motor vehicles in force in the Republic of Lithuania. In the exceptional cases a frontier insurance may be concluded in respect of an acquired motor vehicle which is being brought in the Republic of Lithuania and which is normally based in the territory of another Member State of the European Union, provided that such a motor vehicle has not been insured. In this case a frontier insurance contract may be concluded within a period of thirty days after acceptance of delivery by the purchaser, if a person who applies for conclusion of an insurance contract produces the documents of acquisition of this motor vehicle in another Member State of the European Union. After the expiry of this period, the imported motor vehicle may, under this Law, be insured only in the event that the motor vehicle is registered in the Republic of Lithuania.

9. All declarations and notifications by the parties to the insurance contract in relation to the insurance contract shall be made in writing. Should the address of the policyholder’s place of residence or establishment change and should the policyholder fail to notify the insurer thereof, any declarations and notifications sent by the insurer to the policyholder’s last known address by registered mail shall be deemed to be delivered to the policyholder.

10. The user shall not have the right to conclude for the same or overlapping period of contract validity several contracts of compulsory insurance against civil liability in respect of the use of motor vehicles with respect to one and the same motor vehicle. Where several insurance contracts have been concluded, the original insurance contract shall terminate as from the moment when a new one concluded with respect to the same motor vehicle comes into force.

11. The text of the insurance contract and the data indicated in the insurance certificate as required by subparagraphs 1-10 of paragraph 1 of Article 6.991 of the Civil Code shall be typed. Insurance certificates have to be filled in with the data from the database of compulsory insurance against civil liability in respect of the use of motor vehicles.

12. The insurer must issue to a person, who concludes or has concluded an insurance contract with the insurer in 2008, a form of the declaration of a road accident and explain how to fill it in. The insurer shall issue to a person, who concludes or has concluded an insurance contract with the insurer from 1 January 2009, a form of the declaration of a road accident and explain how to fill it in, at request of the person.