Correspondents
Correspondent is an enterprise which is exclusively competent to review and settle all claims resulting from road traffic accidents (hereinafter – RTA) which occur in respective country (in country, where correspondent is nominated to handle claims, i.e., in Latvia) and where vehicle causing loss is insured by insurance company of Green Card System member state (hereinafter – foreign insurance company), which requested nomination of this correspondent in the country of RTA – Latvia.
Correspondent should be able to handle claims professionally in conformity with normative acts of the Republic of Latvia (hereinafter – LR) and after request of organization “Latvijas Transportlīdzekļu apdrošinātāju birojs” (hereinafter – LTAB) to provide reports on claims which correspondent handles and/or has settled within the scope of his competence.
In consistency with provisions for correspondent nomination specified in Internal Regulations of Council of Green Card Bureaux (hereinafter – the IR), correspondents in Latvia are designated by Latvian National Green Card Bureau – LTAB.
Procedure for Nomination of Correspondents
I Application for Nomination of Correspondent
In order to designate correspondent in Latvia, foreign insurance company’s application should be submitted to LTAB for examination by mediation of respective country’s Green Card Bureau only.
Consent of enterprise willing to become foreign insurance company’s correspondent in Latvia has to be attached to the mentioned application.
In case if there is requested nomination of company not being LTAB member concerning representation of EEA or Swiss Confederation insurance company, there should be additionally provided information whether the specified company is appointed in accordance with the 4th Motor EU Directive (2000/26/EC, hereinafter – 4th Directive) as claims handling representative of the respective foreign insurance company nominating correspondent.
II Approval of Nomination of Correspondent
In accordance with Art. 4 of the IR, LTAB grants its approval to the company requested to be nominated as a foreign insurance company’s correspondent, in cases, where:
- There is submitted request for nomination of a company which is any establishment (branch, affiliated company) of foreign insurance company – Member of the respective country’s Green Card Bureau, provided that it (establishment) is authorized to transact mandatory insurance against civil liability in respect of the use of motor vehicles in Latvia; Expanding this IR provision, LTAB approves nomination as a correspondent of foreign insurance company of any company which is authorized to transact mandatory insurance against civil liability in respect of the use of motor vehicles in Latvia,;
- LTAB receives foreign Bureau’s request for nomination as a correspondent of company, which according to effective normative acts of LR is not eligible to perform mandatory insurance against civil liability in respect of the use of motor vehicles in Latvia, but which already acts as respective foreign (EEA member state or Swiss Confederation) insurance company’s claim handling representative in Latvia according to the 4th Directive.
III Terms for Making Decision on Nomination of Correspondent
In conformity with Art. 4.3 of the IR, LTAB shall grant or refuse its approval of correspondent within 3 months from the date of receipt of the request.
In case if all information specified in part I above is not duly provided, LTAB requests necessary information and decision-making on approval (or rejection) of correspondent’s nomination is postponed until the moment when necessary information is received. LTAB’s decision granting approval of nomination specifies that correspondent’s designation becomes effective on the first date of the next month (following the month, when approval is received), or, in exceptional cases, on other date, taking into consideration nomination requester’s wish regarding specific date of correspondent’s appointment (in case if request to nominate company as a correspondent with a retrogressive date is expressed in the application, this date should not differ for more than 30 days from the date of receipt of the application). LTAB informs both foreign bureau requesting nomination and the correspondent concerned on its decision to grant or refuse approval.
IV Dismissal of Correspondent
LTAB, in accordance with the IR, is eligible to withdraw approval of correspondent’s nomination in cases, where:
- this is requested by a foreign bureau as its member, which had earlier requested correspondent’s nomination in Latvia, has decided to dismiss this correspondent;
- this is requested by the correspondent itself;
- LTAB on its own discretion has made decision to terminate correspondent’s nomination (e.g., due to correspondent’s significant violations or insolvency).
In all above-mentioned cases, LTAB is eligible to specify the effective date of withdrawal of its approval. It should be taken into account that in cases, where designated correspondent is at the same time also appointed as a claim representative in accordance with provisions of 4th Directive, this approval cannot be withdrawn as long as the correspondent concerned retains its capacity as a claims representative under the said Directive unless it is in serious breach of its obligations in conformity with Article 4 of the IR .
It must be observed additionally that LTAB, which is responsible for handling and supervision of all claims, in case of serious reason has right to take over claim’s handling and settlement from a correspondent.