Article 17. Compensation Payable by the Bureau

1 The Bureau shall pay compensation for the damage caused in a road accident to the injured third parties in the cases where:

1) a responsible person caused damage in the Republic of Lithuania with an uninsured (identified) motor vehicle, provided that the user of motor vehicle incurs civil liability in respect of the damage. The Bureau shall also pay under this subparagraph in the cases when the damage is caused in another member state of the European Union by an uninsured motor vehicle, which is normally based in the territory of the Republic of Lithuania;

2) damage caused during a road accident which took place in the territory of the Republic of Lithuania to person’s health and/or deprivation of life when the damage is caused under the circumstances which prove civil liability of the user of a motor vehicle, however, the motor vehicle which and/or responsible person who caused the road accident are not identified. Under this subparagraph the Bureau shall pay compensation to the injured third parties also for damage to property, if for the same road accident at least to one injured third party the Bureau pays compensation for the damage caused to the person, in the event of grievous health impairment which is established in compliance with the Rules for Establishing the Scope of Health Impairment;

3) the responsible person who, at the time when the damage is done, is covered by compulsory insurance against civil liability in respect of the use of motor vehicles (has the insurance contract which is in force), but the responsible insurer – a member of the Bureau is the subject of bankruptcy proceedings. According to this subparagraph the Bureau shall pay compensation if the insured motor vehicle caused damage in the territory of the Republic of Lithuania, another member state of the European Union o another foreign state whose national insurers’ bureau has signed the Regulations on Cooperation.

2. The Bureau shall pay compensation under subparagraphs 1 and 2 of paragraph 1 of this Article to injured third parties who incurred damage in a road accident which occurred in the Republic of Lithuania and who are permanently resident in the Republic of Lithuania or another Member State of the European Union. The Bureau shall also pay compensation to injured third parties who incurred damage in a road accident which occurred in the Republic of Lithuania and who are permanently resident in a foreign state if the national insurers’ bureau of the state in which the injured third party is permanently resident has signed the Regulations on Cooperation or an agreement with the Bureau on the recognition of reciprocal settlement of claims.

3. The Bureau shall pay compensation according to subparagraph 3 of paragraph 1 of this Article to injured third parties instead of the following members of the Bureau:

1) insurance undertakings or branches of insurance undertakings of foreign states in accordance with their insurance contracts governed by the law of the Republic of Lithuania;

2) insurance undertakings of another Member State of the European Union in accordance with their insurance contracts governed by the law of the Republic of Lithuania.

4. An injured third party shall also be entitled to appeal to the Bureau for claim handling and settlement regarding the damage caused during a road accident which occurred in the territory of the Republic of Lithuania, when the insurance undertaking of another state which insured civil liability of the responsible person (which issued the Green Card valid in the republic of Lithuania or any other certificate of compulsory insurance against civil liability in respect of the use of motor vehicles) has not appointed a claims representative in the Republic of Lithuania. The Bureau shall pay compensation to the injured third parties for the damage caused during a road accident in the territory of the Republic of Lithuania, if the national insurers’ bureau of the state whose insurance undertaking has insured civil liability of the responsible person has signed the Regulations on Cooperation or an agreement with the Bureau on the recognition of reciprocal settlement of claims, with the exception of the cases when the damage has been compensated for by the insurance undertaking which insured civil liability of the responsible person or a claims representative of such undertaking.

5. In the cases when the Bureau pays compensation according to paragraph 1 of this Article for the damaged caused to and handled for the third persons who were injured in another member state of the European Union or a foreign state, compensation shall be paid to the national insurers’ bureau of another state, which reimbursed the damage caused in a road accident, taking into account the Regulations on Cooperation and 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 occurred. Responsibility of the Bureau for the payment of compensation to the guarantee fund of another state for the damage caused in another member state of the European Union with an uninsured motor vehicle specified in paragraph 8 of Article 6 of this Law shall end after 30 days counting from the day of delivery of the motor vehicle to the purchaser. The Bureau shall pay compensation to the national insurers’ bureau of another state or to the guarantee fund of another state also in other cases, in adherence to the requirements of the Regulations on Cooperation or an agreement on the recognition of reciprocal settlement of claims.

6. In the cases when a person injured in the Republic of Lithuania, another member state of the European Union, or a foreign state, who is permanently resident in another member state of the European Union, has in compliance with the legal acts of his country applied for the reimbursement of the damage incurred to a compensation body, operating in his country, the Bureau must pay to the a compensation body of another member state of the European Union the sum requested by it, which has been paid to the injured third party, as well as a set remuneration for claim handling if at least one of the following conditions is satisfied:

1) civil liability of a responsible person is covered by the insurer or the branch situated in the Republic of Lithuania, however, within three months from the date of presenting a claim for damages to the responsible insurer or its claims representative, the insurer or its claims representative has not issued to the injured person a reasoned reply to the claim; or the insurer has failed to appoint a claims representative in another Member State of the European Union in which the injured third party is permanently resident;

2) civil liability of the responsible person whose motor vehicle is normally based in the territory of the Republic of Lithuania, has not been covered or in the case of failure to determine within 2 months from the presentation by the injured third party of a claim to a compensation body the insurer who covered civil liability of the responsible person whose motor vehicle is normally based in the territory of the Republic of Lithuania;

3) damage has been caused in the cases specified in subparagraph 2 of paragraph 1 of this Article and it was not possible to determine within 2 months from the presentation of a claim by the injured third party the motor vehicle which caused a road accident;

4) during a road accident which occurred in the territory of the Republic of Lithuania the damage was caused by the motor vehicle which is normally based in the territory of a foreign state, in the event of failure to determine the insurance undertaking of the member state of the European Union which covered civil liability of the user of this motor vehicle.


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