MTPL (motor third-party liability) insurance

MTPL insurance is a legally prescribed compulsory insurance for all motor vehicles and an essential part of the vehicle registration process. This insurance policy protects the vehicle owner in cases where they cause loss or damage to third parties, with the insurance company assuming the liability for covering the costs resulting from a traffic accident, which the policyholder would otherwise have to bear. DDOR Novi Sad guarantees security to its insureds by taking responsibility for all financial consequences arising from such incidents, up to the legally defined insured sums.

The policy covers losses caused to third parties, in accordance with the legally prescribed limits:

• Loss caused to persons – up to 1,000,000 euros per loss event, irrespective of the number of injured parties. 
• Damage to property – up to 200,000 euros per loss event, irrespective of the number of injured parties. 

It is important to emphasize that the compulsory MTPL insurance policy is linked exclusively to the vehicle, not the driver. This means that any damage caused by any driver operating the insured vehicle is covered under the policy. In addition, when the vehicle is sold, the policy “follows” the sold vehicle – the rights and obligations under the insurance contract are transferred to the new owner of the motor vehicle.

This insurance is essential for every vehicle owner, as it ensures compliance with the law, provides financial protection in case of accidents, and peace of mind during daily vehicle operation. It also enables a quick and efficient handling of claims.

The price of MTPL insurance is determined based on the vehicle type, engine power (KW), load capacity (t), engine displacement (ccm3), or the purpose of the vehicle. The bonus-malus system is applied to the basic premium, which then determines the final insurance price.

The bonus-malus system determines the insurance premium based on the driving history of the vehicle owner. Drivers with no reported claims receive discounts (bonus), while those with reported claims pay a higher premium (malus). 

How is premium calculated?

The premium amount is determined using the following formula:

Pbm = Po * ki

• Pbm: Premium determined using the bonus-malus system
• Po: Basic premium (fourth premium level)
• ki: Premium level coefficient

To travel abroad, you need a green card for the following countries: Ukraine, Moldova, Turkey, North Macedonia, Albania, Tunisia, Morocco, and Azerbaijan. This ensures coverage for damage and injuries you might cause with your vehicle while traveling abroad.

The green card can only be purchased from the insurance company where your vehicle is insured. If you’re insured with us, you can get the green card at any of our business units.

Since December 10, 2009, all drivers must carry a copy of the Traffic accident report in their vehicle, which is used (filled out) in the event of a traffic accident with minor material damage (no injuries). 

Minor material damage is damage caused in a traffic accident with a value below the threshold for which the Law on Road Safety and the Law of Contracts and Torts prescribe criminal liability.

In the event of a traffic accident, participants must complete, sign and exchange the European Accident Statement in accordance with the road safety regulations. A duly completed European Accident Statement can be used by the injured party and the insured as a claim under MTPL insurance.

The insurance company must provide the policyholder with the European Accident Statement together with the MTPL insurance policy. 

When operating a motor vehicle on the road, the driver must carry the European Accident Statement and present it at the request of an authorized officer.