Motor third party liability insurance applies when the holder or the driver of a vehicle causes the damage to other persons and, according to applicable law, is liable for the loss.
Compensation that responsible holder or driver of a vehicle is obliged to render to victim is paid by the insurance company with whom the offender has entered into a contact of insurance
MTPL insurance protects the party responsible against the risk of compensation and guarantees that the victim’s loss will be covered.
In Poland, as in most European countries, TPL insurance is compulsory.
Following the provisions of the Law on Compulsory Insurance, Insurance Guarantee Fund and Polish Motor Insurers’ Bureau, any holder of a motor vehicle registered in Poland is obliged to conclude a contract of Motor third party liability insurance in respect of motor vehicle held.
MTPL insurance covers accidents occurred in territory of Poland, as well as events that occurred in the territory of countries which are signatories to the Multilateral Agreement (ie. the EEA countries, Andorra and Serbia).
MTPL insurance contract is concluded for a period of 12 months. Exceptions to this rule are provided under the Law on Compulsory Insurance, Insurance Guarantee Fund and PBUK.