MTPL (Motor Third-Party Liability) Insurance

MTPL insurance is a legally mandated form of compulsory insurance for all motor vehicles and a necessary part of the vehicle registration process. This type of insurance protects the vehicle owner in cases where they cause loss or damage to third parties. In such situations, the insurance company assumes liability for covering the costs resulting from a traffic accident—costs that the policyholder would otherwise have to bear.

DDOR Novi Sad guarantees security to its insured clients by assuming responsibility for all financial consequences arising from such incidents, up to the legally defined coverage limits.

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

• Personal injury – up to 1,000,000 euros per incident, regardless of the number of injured persons.
• Property damage – up to 200,000 euros per incident, regardless of the number of damaged parties.

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

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 adjusts the insurance premium based on the vehicle owner’s driving history. Drivers with no reported claims receive a discount (bonus), while those with reported claims pay a higher premium (malus). This system promotes responsible driving and fairness in pricing.

How Is the Premium Calculated?

The insurance premium is calculated using the following formula:

Pbm = Po × ki

Where:

Pbm: Premium determined using the bonus-malus system

Po: Basic premium (corresponding to the fourth premium level)

ki: Premium level coefficient

A green card is required when traveling to the following countries: Ukraine, Moldova, Turkey, North Macedonia, Albania, Tunisia, Morocco, and Azerbaijan. It provides proof of valid motor third-party liability insurance and ensures coverage for damage or injury you may cause with your vehicle while abroad.

The green card can only be obtained from the insurance company with which your vehicle is insured. If you are insured with us, you can request a green card at any of our branch offices.

Since December 10, 2009, all drivers are required to keep a copy of the Traffic Accident Report (European Accident Statement) in their vehicle. This form is used in the event of a traffic accident involving minor material damage (i.e. no injuries).

Minor material damage refers to damage resulting from a traffic accident where the value of the loss is below the threshold for which the Law on Road Traffic Safety and the Law on Obligations prescribe criminal liability.

In the event of an accident, participants must complete, sign, and exchange the European Accident Statement in accordance with road safety regulations. A properly completed Statement may be used by both the injured party and the policyholder to file a claim under MTPL insurance.

The insurance company is required to provide the European Accident Statement to the policyholder together with the MTPL insurance policy.

While operating a motor vehicle, the driver must carry the European Accident Statement and present it upon request of an authorized officer.