Article 4. Obligation to Conclude an Insurance Contract

1. Motor vehicles used in the territory of the Republic of Lithuania must be covered by compulsory insurance against civil liability in respect of the use of motor vehicles. A motor vehicle normally based in the territory of the Republic of Lithuania must be covered by compulsory insurance against civil liability in respect of the use of motor vehicles as long as the motor vehicle is registered.

2. Responsibility for concluding an insurance contract in accordance with the procedure established in Article 43 of this Law shall fall on the owner of motor vehicle (hereinafter referred to as “the person responsible for the conclusion of an insurance contract”). Where a person uses a motor vehicle under a leasing (financial lease) contract or a lease-option contract, or under any other similar contract (hereinafter referred to as “a leasing contract”), the responsibility to conclude an insurance contract shall fall on that person. Where the motor vehicle is co-owned by several persons, the responsibility to conclude an insurance contract shall be joint and several among all the co-owners, unless they agree otherwise.

3. The persons and owners of motor vehicles specified in paragraph 2 of this Article may not use an motor vehicle uninsured against civil liability in respect of the use of motor vehicles, nor let other persons use it.

CHAPTER TWO

INSURANCE CONTRACT

Article 5. Types of Insurance Contract

Types of insurance contracts shall be as follows:

1) standard insurance contract;

2) frontier insurance contract.