What is MTPL and why is it necessary?

What is MTPL?

MTPL is the motor third party liability compulsory insurance. It is compulsory for all mechanical motor vehicles and trailers participating in the road traffic and registered with the Road Traffic Safety Directorate (CSDD) and the State Agency for Technical Surveillance.

The European Union law stipulates that in order to participate in the road traffic every motor vehicle must hold a motor third party liability compulsory insurance (MTPL) policy. 

The MTPL insurance is provided in compliance with the Law on Motor Third Party Liability Compulsory Insurance.

The MTPL policy issued for a vehicle registered in Latvia is valid throughout the European Economic Area and Switzerland.

Why is it necessary to obtain MTPL?

If a vehicle driver causes a road traffic accident and damages another person's property or health, losses are covered by the insurance company, rather than the driver at fault.