From July 2026, All OCTA Insurers Must Participate in LTAB Claim Administration
Starting July 1, 2026, all motor third-party liability insurers in Latvia will be required to handle claims belonging to the Latvian Motor Insurers' Bureau, aiming to distribute workload and improve service for victims.
Amendments to the Law on Compulsory Civil Liability Insurance of Owners of Road Vehicles will require all insurers offering OCTA policies in Latvia to administer claims that fall under the Latvian Motor Insurers' Bureau (LTAB) from July 1, 2026. This means victims will be able to file claims with their own insurer, rather than only with a few companies that currently do this on a voluntary basis.
Currently, only three insurers administer LTAB claims, down from four in 2021. This created an uneven burden on those companies and inconvenience for victims, as claims often had to be transferred between insurers, and many victims could not approach their own insurer because it was not involved in LTAB claim handling.
To address this, the Cabinet of Ministers approved regulations setting an administration fee of 15% of the compensation amount, plus VAT. The minimum fee is €200 (including VAT) and the maximum is €1,100 (including VAT). This fee covers all activities and expenses related to administering the claim.
The Ministry of Finance states that the new arrangement is proportionate and justified, as it distributes the workload evenly among all market participants. For victims, it means they can submit claims to their own insurer, whose service quality they have already found trustworthy.
