Article 10. Territorial Coverage of Insurance Contract

1. A standard insurance contract or a frontier insurance contract shall, on the basis of a single premium and during the whole term of the insurance contract, including for any period in which the motor vehicle remains in other Member States during the term of the insurance contract, provide insurance coverage in any Member State of the European Union to the extent required by the legal acts of the respective Member State of the European Union regulating compulsory insurance against civil liability in respect of the use of motor vehicles or to the extent required by this Law, when that coverage is higher. A standard insurance contract under which a Green Card has been issued shall also provide insurance coverage in the foreign states indicated on the Green Card.

2. A standard insurance contract or a frontier insurance contract shall, on the basis of a single premium and during the whole term of the insurance contract, also be valid and shall provide insurance coverage in the Swiss Confederation in accordance with the legal acts of the Swiss Confederation. A standard insurance contract shall also provide insurance coverage under this Law for any damage suffered by the third parties who were injured in a road accident, permanently resident in a Member State of the European Union, during a direct journey between two territories in which the Treaty establishing the European Community is in force, if there is no national insurers’ bureau responsible for the territory which is being crossed.

3. Contracts of compulsory insurance against civil liability in respect of the use of motor vehicles concluded by the insurance undertakings or branches of other Member States of the European Union shall be recognised in the Republic of Lithuania and shall be deemed to be in compliance with the provisions of this Law.

4. A Green Card shall be valid and shall provide insurance coverage in the states indicated on the Green Card, unless the insurer and the policyholder agree otherwise, in accordance with the legal acts of these states.

Article 11. Sums Insured and Insurance Premiums

1. The sum insured under compulsory insurance against civil liability in respect of the use of motor vehicles in a single road accident in the Republic of Lithuania, whatever the number of injured third parties shall be:

1) until 10 December 2009 - 500 000 euros for personal injury (including 1 000 euros for non-pecuniary damage) and 100 000 euros for damage to property;

2) from 11 December 2009 until 10 June 2012 – 2 500 000 euros for personal injury (including 2 500 euros for non-pecuniary damage) and 500 000 euros for damage to property;

3) from 11 June 2012 – 5 000 000 euros for personal injury (including 5 000 euros for non-pecuniary damage) and 1 000 000 euros for damage to property.

2. A single road accident means an accident which occurred for same reason, even if more than one injured third party may pursue claims in respect of such a road accident.

3. The insurer shall pay compensation for the damage caused in another Member State of the European Union based on the sums insured in accordance with the legal acts of the Member State concerned or the sums insured as specified in paragraph 1 of this Article, whichever are higher.

4. Amounts of insurance premiums shall be fixed by the insurer.

5. Should the policyholder fail to pay the insurance premium in due time, the insurer shall have the right to charge late-payment interest of 0.04 percent on the overdue amount for each delayed day, unless otherwise provided in the insurance contract.

6. The insurer may not refuse to pay compensation in respect of an insured event which occurred in the period for which the policyholder failed to pay the insurance premium within the time limit set in the insurance contract or in the period for which the policyholder was released from the obligation to pay insurance premiums.

7. If the policyholder failed to pay, within the time-limit set in the insurance contract, the insurance premium for the insurance coverage provided under the insurance contract and if the motor vehicle covered by that insurance contract caused damage during the said period or the damage was caused during the period for which the policyholder was released from the obligation to pay insurance premiums in accordance with paragraph 3 of Article 9 of this Law, the insurer shall be entitled to claim reimbursement from the policyholder for the amounts paid by the insurer to the policyholder by way of compensation for damage.

8. The insurer shall not have the right to fix a sum in the insurance contract by which the compensation paid in the case of an insured event would be reduced.

9. Every five years from 11 June 2012 the amounts of the sums insured for personal injury and damage to property, referred to in subparagraph 3 of paragraph 1 of this Article, shall be increased in line with the percentage change of the European Index of Consumer Prices for the relevant period and rounded up to a multiple of 10 000 euros. The adjusted amounts of sums insured shall be announced in a resolution of the Government of the Republic of Lithuania.