LTAB data show a rising trendline in the total volume of MTPL paid claims too. According to LTAB, total MTPL indemnities rose from EUR 20.5 million in the first half of 2016 to EUR 27.8 million in the first half of 2019 (+36%).
In Latvia, motor insurance claims can be filled within 1 year from the date of the accident for material damage, and a maximum of 3 years from the date of the accident for health and bodily injuries.
"The significant increase in claims from the past few years was mainly caused by rising inflation, rising price levels, as well as the effects of the laws passed by the state in this period, related to insurance sector (...) The rapid increase in the average indemnity from the past few years can also be explained by the fight against illegal car services, initiated by Latvian authorities, leading to changes in the procedure of paying cash for car repairs," explained Janis ABASINS, Chairman of LTAB Board.
Some of the regulatory changes mentioned by ABASINS above include extended periods of coverage for medical expenses of the injured, as well as compensations for minors, enrolled in a general, vocational or higher education institution, who have lost their profession as a result of the accident.