Article 18. Claims Handled and Settled by the Bureau as Compensation Body of the Republic of Lithuania

1. The Bureau shall act as a compensation body in the Republic of Lithuania and shall handle and settle claims for damages and pay compensation when the injured third party suffers damage in another Member State of the European Union or in a foreign state the national insurers’ bureau of which has joined the Green Card system if all of the following conditions are satisfied:

1) the injured third party is permanently resident in the Republic of Lithuania;

2) the responsible person whose motor vehicle is normally based in another Member State of the European Union has his civil liability covered by an insurance undertaking or a branch of another Member State of the European Union (located outside the Republic of Lithuania).

2. On the basis of paragraph 1 of this Article, the injured third party may present a claim for damages to the Bureau subject to either of the following conditions:

1) within three months from the date of presenting the claim for compensation to the responsible insurer of another Member State of the European Union or its claims representative, the said insurer or its claims representative has failed to give a reasoned reply to the claim;

2) the insurer of another Member State of the European Union which has covered the civil liability of the responsible person has failed to appoint a claims representative in the Republic of Lithuania, provided that the injured third party has not presented a claim directly to the responsible insurer or has presented a claim directly to the responsible insurer but has not received a reply within 3 months.

3. The Bureau shall also settle claims for damages and pay compensation when the injured third party permanently resident in the Republic of Lithuania has suffered damage in another Member State of the European Union if:

1) the insurance undertaking which has covered the civil liability of the responsible person is not identified within two months from the date of the road accident;

2) the motor vehicle which caused the damage is not identified within two months from the date of the road accident if, in accordance with the legal acts of the state in which the road accident occurred, the damage is to be compensated.

4. A claim may be presented to the Bureau after the expiry of the time limit specified in paragraphs 2 and 3 of this Article. A claim may be presented in writing, indicating the circumstances of a road accident and submitting the possessed documents, which substantiate the injured third party’s request. The Bureau must examine the claim for damages and take a decision regarding the payment of compensation within two months of the date when the claim and the available information necessary to determine the circumstances of the road accident and the caused damage were presented, provided that the claim is presented to the Bureau pursuant to paragraph 2 of this Article. When a claim is presented to the Bureau pursuant to paragraph 3 of this Article, the Bureau must examine the claim for compensation of the damage and take a decision regarding the payment of compensation within three months of the date when the claim and the available information necessary to determine the circumstances of the road accident and the caused damage were presented. If it is impossible to pay compensation within the time limit specified in this Article because of the lack of the documents necessary to determine the circumstances of a road accident, the fact of an insured event or the amount of damage, the Bureau must pay compensation within 14 days, starting from the day on which all necessary information and documents were received. Where it emerges that the responsible insurer or its claims representative has provided a reasoned reply regarding the presented claim concerning the payment of compensation, the Bureau shall terminate the examination of the claim. The Bureau shall also terminate the examination of a claim when the injured third party has brought the responsible person or the responsible insurer to court for payment of compensation or when the responsible institutions of another state have provided information that a pre-trail investigation has been started with regard to this road accident or legal proceedings concerning the actions of the injured third party. A decision regarding the payment of compensation shall be taken in accordance with the legal acts regulating compulsory insurance against civil liability in respect of use of motor vehicles of the state in which a road accident occurred and the provisions of the agreements signed between the compensation bodies and guarantee funds.

5. The Bureau shall, without delay but not later than within 14 working days, notify the responsible insurer of another Member State of the European Union or its claims representative in the Republic of Lithuania, the compensation body of another Member State of the European Union and/or the Guarantee Fund, as well as the person who caused the accident, if known, about the received claim for damages from the injured third party (presented in accordance with paragraph 1 of this Article) and the time limits of examination thereof.