Article 14. Claims Representative of the Insurance Undertaking

1. A representative of an insurance undertaking of another Member State of the European Union or a foreign state in the Republic of Lithuania shall be a trustee of such undertaking who is appointed to perform the functions of handling and settling of claims on behalf of this undertaking.

2. In the cases when a permanent resident of the Republic of Lithuania, who was injured during a road accident outside the territory of the Republic of Lithuania, wishes so, a claims representative of another Member State of the European Union in the Republic of Lithuania must also solve matters of handling and settling of claims where all of the following conditions are satisfied:

1) the injured third party has suffered damage in a Member State of the European Union other than the state of his permanent residence or in a foreign state the national insurers’ bureau of which has joined the Green Card system;

2) civil liability of the responsible person is covered by an insurer or its branch based in a Member State of the European Union other than the state of permanent residence of the injured third party;

3) the motor vehicle of the responsible person is normally based in a Member State of the European Union other than the state of permanent residence of the injured third party.

3. When a claims representative, appointed in the Republic of Lithuania, quantifies the damage caused in the territory of the Republic of Lithuania and solves a matter of compensation payment, the provisions of this paragraph concerning the procedure for quantifying damage and paying compensation shall be applicable. When a claims representative, appointed in the Republic of Lithuania, quantifies the damage caused not in the territory of the Republic of Lithuania and solves the matter of compensation payment, the legal acts, regulating compulsory insurance against civil liability in respect of the use of motor vehicles, of the state in which the road accident took place shall be taken into consideration.

4. An insurer who has the right to provide compulsory insurance against civil liability in respect of the use of motor vehicles in the Republic of Lithuania, must appoint in all other Member States of the European Union claims representatives who are responsible for payment of compensation to the injured third parties where all the following conditions are satisfied:

1) an injured third party has suffered damage in a member state of the European Union in which he is not permanently resident or in a foreign state whose national insurers’ bureau has joined the Green Card system, and the injured third party is permanently resident in a member state of the European Union;

2) an injured third party is not permanently resident in the Republic of Lithuania;

3) the motor vehicle of a responsible person, whose civil liability is covered by this insurer, is normally based in the territory of the member state of the European Union other than that in which the injured third party is permanently resident.

5. The claims representative shall be permanently resident or established in the Member State of the European Union where he is appointed. The choice of its claims representative shall be at the discretion of the insurer. The claims representative may work for one or more insurers. He must be capable of examining cases in the official language(s) of the Member State of the European Union where the injured third party is permanently resident.

6. The insurer shall delegate sufficient powers to its claims representative to discharge his functions (collect all necessary information, take decisions regarding the payment of compensation, pay compensation, etc.).