The MoF encourages the ability of the vehicle owner not to do OCTA insurance if the vehicle is not used / day for a long time

In order to be able to use this option, the vehicle must be in a private area, measures must be taken to prevent the vehicle from being used and damaged, as well as submitting a notification of the vehicle’s registration number and date from which the vehicle will not be used on the Latvian Motor Insurance Bureau (LTAB) website.

In this case, the owner of the vehicle would have the right to return the unused part of the OCTA premium by submitting an application to the insurer for termination of the insurance contract, explains the MoF.

However, in such a case, however, a third party is caused by a third party, the loss would have to be covered from the Guarantee Fund and the LTAB should determine the right of regression against the driver or owner of the driver.

The MoF report also concludes that the Law « Amendments to the Law on Civil Liability Insurance of Land Motor Liability Insurance » adopted on November 14, 2024, which provided that the OCTA insurance policy would have to be purchased for all vehicles in the future,

At the same time, when assessing the adopted law and the provisions of the Directive, it was concluded that it is possible to improve the overall system created by reducing both the administrative burden (authorities and citizens) and simplifying certain procedures.

In order to ensure this, amendments to the Cabinet of Ministers Regulations of November 30, 2010, « Rules for Vehicle Registration », to simplify the procedure for stopping the vehicle for temporary registration and deleting the requirement for the transfer of state registration license plates to storage in the Road Safety Directorate (CSDD).

The MoF report states that the Ministry of Transport is already driving amendments to the « Vehicle Registration Terms », which provides for the deletion of a requirement for the transfer of license plates to the CSDD for storage if the vehicle is temporarily stopped. This procedure is expected to enter into force on November 1, 2025.

At the same time, the MoF points out that this procedure will facilitate more efficient use of resources and reduce the administrative burden. Introducing this procedure should also be amended in other legislation, excluding the reference to the need to transfer the license plate to the CSDD storage if the vehicle is suspended temporarily.

It has already been reported that the Saeima adopted amendments to the OCTA Law on December 5, 2024, which provides for the postponement of OCTA insurance for all vehicles registered, including those who participate in the traffic seasonal entry into force.

The amendments to the law entered into force in one day with the amendments to the OCTA Law already announced by the President on December 10. These amendments provide that the already announced amendments to the OCTA Law will enter into force on November 1, 2025.

The Cabinet was tasked with providing an evaluation of the scope of the European Union Directive whether it was appropriately taken over and does not provide for any derogations, while the involved ministries and institutions will prepare a solution so that the OCTA policy does not have to buy vehicles not in motion or used seasonally.

On November 14 last year, the Saeima adopted and the President announced amendments to the OCTA Law, where deputies had not noticed that the Norm had been included, which requires the OCTA insurance policy to be purchased for all vehicles unless their registration was stopped.