Motor Third-Party Liability Payouts Reach €84.5 Million in Latvia
Over the past year, Latvian motor third-party liability insurers have approved compensation totaling €84.5 million, while the average payout reached €1,811. The number of reported traffic accidents rose by 10.1%.
According to data compiled by the Latvian Motor Insurers' Bureau (LTAB), the total amount approved for compulsory motor third-party liability claims over the past 12 months reached €84.5 million. The average compensation now stands at €1,811. The bureau's chairman, Jānis Abāšins, attributes the growth in average payouts mainly to inflation and higher prices for car repairs, construction, medical care and rehabilitation services.
During the latest 12-month period, insurers received reports on 39,740 road traffic accidents, which is 10.1% more than in the previous period. Most accidents—73.6%—were documented with a joint statement, while 26.4% were recorded through State Police protocols. Nearly 93% of the accidents occurred in Latvia, and just over 7% abroad, with Germany, Lithuania and Estonia being the most common locations.
Abāšins highlights a positive trend: the share of accidents involving uninsured vehicles has declined. In 2022–2023 such cases accounted for 0.87% of all accidents, but in the last 12 months the figure dropped to 0.54%. He explains this improvement by the growing number of speed cameras on the roads and LTAB information campaigns about the importance of third-party liability coverage.
Looking at the structure of payouts, the largest portion—74.8%—went to compensate damage caused to vehicles. Another 10.4% was paid to injured persons, while 6.4% went to state and local government institutions, mainly to cover treatment, stays in medical facilities and benefits.
The coverage does not stop at vehicle damage. It also compensates expenses related to medical treatment and rehabilitation, emergency care, hospital stays and other health recovery costs. In addition, the policy covers state and municipal spending such as sick leave payments, pensions, benefits, funeral costs, the purchase or rental of technical aids, as well as damage to roads, buildings and the environment.
