New Compensation System for Military Incidents: Insurers and Justice Ministry Seek Solutions

Following several drone incidents in Latgale, Latvian insurers have begun offering a new type of insurance covering military risks during peacetime. Currently, this policy is available only to companies (legal entities) and is provided by just a few companies. A market mechanism for individuals has not yet emerged, but according to Jānis Abāšins, President of the Latvian Insurers Association, there is hope that insurers will find a solution for private individuals as well. The state could then provide support through subsidies or one-time payments.

Meanwhile, the Ministry of Justice is proposing amendments to the Civil Protection and Disaster Management Law. The plan is to add military incidents to the list of man-made disasters, which currently includes technological catastrophes, riots, and terrorist attacks. The new regulation would cover both drone crash incidents and other events threatening people and property. Justice Minister Edvards Smiltēns emphasizes that society must take responsibility for fellow citizens, ensuring they can recover what they have lost, whether it be homes or a vehicle.

The compensation mechanism is not yet clear. According to the Ministry of Justice, victims could approach their local municipality, which would immediately contact the finance minister, who could then decide on the payout. If the state begins paying compensation for military incidents, such insurance might become redundant. Abāšins adds that the state usually does not interfere where market mechanisms work, but it could subsidize insurance, similar to subsidies for farmers' crop insurance. Discussions on compensating losses from military incidents are still forthcoming.