Car accident in Estonia: compensation from motor insurance

Whom do you claim from?

The injured party may choose whether to claim compensation (LKindlS § 35 lg 1) [2]:

• from the insurer of the party at fault – the insurer of the vehicle with which the accident was caused (LKindlS § 35 lg 1 p 1) [2];
• from your own insurer – the insurer covering liability for damage caused with your vehicle (LKindlS § 35 lg 1 p 2) [2]. From that insurer you can claim damage from the destruction of or damage to your vehicle and to other property damaged in the same accident (LKindlS § 41 lg 1) [3]; the claim must be made within 30 calendar days of the accident (LKindlS § 35 lg 2) [2].

For the same accident you cannot claim from both insurers, and a claim once made cannot be withdrawn and made to the other insurer (LKindlS § 35 lg 1¹) [2]. Your own insurer does not pay if the damaged vehicle or the vehicle that caused the damage has its main location abroad or if the accident did not happen in Estonia (LKindlS § 41 lg 2) [3]. It may refuse if the circumstances of the accident are unclear, including when no agreement is reached on who is liable (LKindlS § 41 lg 3 p 2) [3]; it must tell you so no later than the 14th calendar day after the claim, and you may then claim from the insurer of the party at fault (LKindlS § 42 lg 1 ja lg 2) [6].

If the accident was caused by an uninsured vehicle, the Motor Insurance Fund (Liikluskindlustuse Fond) pays (LKindlS § 45 lg 1) [7]. The fund also pays for damage caused by an unidentified vehicle, but damage to a vehicle only if the same accident caused at least a serious bodily injury or serious damage to health, or a death, and then with a €250 deductible; damage to other property is paid if the unknown vehicle touched it, with a deductible of up to €150 (LKindlS § 46 lg 1, lg 3 p 1 ja 3, lg 4 ja lg 5) [8].

What is compensated?

• Damage to your car. You may choose the repairer; you must give the insurer the repairer's cost estimate, and the reasonable costs of restoring the pre-accident condition are covered (LKindlS § 26 lg 2) [9]. At your request the insurer gives the repairer a letter of guarantee for paying the repair (LKindlS § 26 lg 2) [9]. Compensation may be paid in money only if the car cannot be restored, repairing it is unreasonable or you have agreed on payment in money (LKindlS § 26 lg 4) [9].
• Lost earnings. The insurer compensates income subject to social tax that you lose because of temporary incapacity for work or partial or no work ability caused by the accident (LKindlS § 28 lg 1) [10].
• Non-pecuniary damage. For damage to health or bodily injury, non-pecuniary damage is also compensated; the law sets minimum amounts by severity, which are indexed every year and published by the fund on its website each January (LKindlS § 32 lg 1–4) [11]. If you reported the accident in a form that can be reproduced in writing, the insurer pays at least the minimum, taking into account the extent of the liable party's liability and your own share in causing the damage (LKindlS § 32 lg 5) [11].

Motor insurance does not cover, among other things, damage above the insured sum, lost profit (except income lost because of death, damage to health or bodily injury) or damage caused to oneself (LKindlS § 33 p 1, 5 ja 7) [12]. The insured sum is set separately for property damage and for death, damage to health or bodily injury and is indexed every five years; the fund publishes the current sums on its website (LKindlS § 25 lg 1, lg 4 ja lg 5) [13].

What the law says

• „Kahjustatud isik võib kindlustusjuhtumi toimumise korral esitada kahju hüvitamise nõude kindlustusandja vastu, kui kindlustatud isik vastutab kahjustatud isiku ees.“ [1] (translation: when an insured event occurs, the injured party may claim compensation from the insurer if the insured person is liable to the injured party; LKindlS § 23 lg 1)
• The direct possessor of a motor vehicle is liable for damage caused in operating it, except in the cases listed in the law, for example where the damage was caused by force majeure or the victim's intentional act (VÕS § 1057) [14].
• „Kui kahjustatud isik on kindlustusjuhtumist kirjalikku taasesitamist võimaldavas vormis teatanud, loetakse, et ta on ühtlasi esitanud kahju hüvitamise nõude.“ [4] (translation: if the injured party has reported the insured event in a form that can be reproduced in writing, they are deemed to have also made a claim for compensation; LKindlS § 37 lg 2)
• The insurer must complete all necessary steps within a reasonable time, but „kõige hiljem 30. kalendripäeval kindlustusjuhtumist teatamisest arvates“ [5] (translation: no later than the 30th calendar day after the insured event was reported; LKindlS § 39 lg 1). If it cannot for a good reason beyond its control, it must tell you in advance, explain the reason and give the expected date (LKindlS § 39 lg 2) [5].
• The insurer communicates a full or partial refusal in a form that can be reproduced in writing (LKindlS § 40 lg 1) [15].
• At your request the insurer must explain the principles of compensation and the method it uses to calculate it (LKindlS § 23 lg 3) [1].

What to do

1. Stop, switch on the hazard lights and keep traffic safe at the scene; at the other driver's request show an identity document (LS § 169 lg 1) [16].
2. If someone is injured, notify the emergency centre (häirekeskus), give first aid as far as you can and, with their consent, write down the names and addresses of witnesses (LS § 169 lg 2) [16].
3. You need not report to the police only if nobody was injured or those involved do not ask for a health check themselves, those involved agree on who is liable, and the details of everyone involved and the liable person are put in writing and signed (LS § 169 lg 4) [16]. If there is disagreement, the person who caused the damage is not at the scene or the damage arose from hitting an animal or trying to avoid it, report to the police at once (LS § 169 lg 5) [16].
4. Report the accident without delay to either the insurer of the party at fault or your own insurer (LKindlS § 37 lg 1) [4] – a report in a form that can be reproduced in writing is also your claim (LKindlS § 37 lg 2) [4].
5. Keep the damaged car as far as possible in its post-accident condition and show it to the insurer (LKindlS § 38 lg 1) [17]. You need not do so after the insurer has inspected it or for longer than seven calendar days after the report; if the insurer asks in a form that can be reproduced in writing to keep it longer, keep it for 15 calendar days from receiving that request (LKindlS § 38 lg 2) [17]. Changes may be made where needed to reduce the damage or in the public interest (LKindlS § 38 lg 3) [17].
6. If the insurer refuses or pays less, ask for the decision in a form that can be reproduced in writing (LKindlS § 40 lg 1) [15] and for an explanation of the calculation method (LKindlS § 23 lg 3) [1].

Frequently asked questions

Can I have my car repaired at a garage of my choice?

Yes. The injured party may choose the repairer; the repairer's cost estimate must be given to the insurer, and the reasonable costs of restoring the pre-accident condition are covered (LKindlS § 26 lg 2) [9]. At your request the insurer helps to organise the repair (LKindlS § 26 lg 3) [9].

I also have comprehensive (kasko) insurance. Which one do I claim from?

If for the same accident you are entitled to compensation both under motor insurance and under a voluntary insurance contract, you may choose which to claim under, unless the voluntary contract provides otherwise (LKindlS § 34 lg 1) [18].

Is the at-fault driver's own damage covered?

Damage caused to oneself is not covered by motor insurance, except the medical costs of the driver who caused the accident (LKindlS § 33 p 7) [12]. The at-fault insurer pays these to the healthcare provider, but not if the driver caused the accident intentionally or was intoxicated or in the condition referred to in § 69 lg 3 of the Traffic Act (LKindlS § 44 lg 1 ja lg 2) [19].

Is damage caused by a drunk driver paid?

The insurer compensates the injured party (LKindlS § 23 lg 1) [1], but may recover what it paid from a driver who drove while intoxicated, caused the accident intentionally, unlawfully and culpably left the scene or drove a vehicle possessed unlawfully (LKindlS § 53 lg 1) [20]. Recovery is also possible if the driver caused the accident while exceeding the speed limit by 41 km/h or more (LKindlS § 53 lg 2 p 1) [20].

How long do I have to claim?

A claim to your own insurer must be made within 30 calendar days of the accident (LKindlS § 35 lg 2) [2]. A claim arising from unlawfully caused damage, for example a claim against the person who caused it, becomes time-barred three years after you learned or should have learned of the damage and of the person liable, but no later than ten years after the accident (TsÜS § 150 lg 1 ja lg 3) [21]. If the damage arose partly from circumstances attributable to you, compensation is reduced (VÕS § 139 lg 1) [22].