Opinion piece. Author: Ilona Bērziņa
The amendments to the draft law on motor third party vehicle liability insurance (OCTA), directed by the Ministry of Finance and approved by the Saeima, show that the deputies of the Saeima do not go into the draft laws approved by them. Instead they produce a legislative failure.
The question is, why is this happening – does the responsible commission really not understand what they approve, or is it a way to supplement the already struggling state budget? Such a version is possible.
The approval of this legislative failure went without a hitch at the Saeima meeting on the 14th of November. On behalf of the Budget and Finance Committee, the draft law “Amendments to the Law on Motor Third Party Vehicle Liability Insurance” was reported in the third reading by Saeima deputy Kristaps Krištopans, who said that the committee has received 13 reports, all from the Minister of Finance. All of them received support from the committee. The law was passed by 86 votes “in favour”. It was voted on by both the ruling coalition and the opposition. Strangely enough, the President of Latvia Edgars Rinkēvičs did not go into the amendments to the law. The president also decided to promulgate this legislative failure that will impact many Latvian residents.
Only after a huge storm of indignation broke out about the requirement to pay MTPL even if the vehicle is parked in a garage and does not participate in traffic, as happens with motorcycles during the winter, agricultural machines, as well as many passenger cars, did the Saeima deputies finally wake up and notice what exactly they have done.
Farmers say that Saeima deputies have basically proposed a legislative draft that is equal to a “stab in the back”.
Bishop of the Latvian Baptist Congregations Union Pēteris Sproģis states in his post on “X” (formerly Twitter) that it is “a robbery and a scheme.” Part of the Latvian population believes that this is absolutely shameless and undisclosed lobbying of the interests of insurers, yet others are puzzled, how can it be that deputies are paid EUR 4 220 a month only for them to produce nothing of worth.
Saeima deputies and the Ministry of Finance are meanwhile trying to distance themselves from this failure by citing requirements listed in EU directives. However, this only serves to underline their incompetence even more. Because Europe does not care at all if the vehicles that stand unused, collecting dust for years have MTPL or not!
According to former road police officer and now Saeima deputy from “Latvia in First Place” political party Edmunds Zivtiņš, there have been various strange traffic accidents involving a parked car or a car in motion without a driver. However, these are rare and there is a system in place – a reserve support fund to repay losses in such cases. This is why it is unnecessary to demand MTPL for vehicles that do not participate in road traffic. However, a look at the votes “in favour” of the changes reveals that Zivtiņš himself voted in favour. When the scandal reached it’s peak, he, as well as Saeima deputies Didzis Šmits and Andris Kulbergs (both from the “Combined List” party) apologized. “Guilty. I did not do my homework. I apologize,” said Didzis Šmits. “I would like to apologize to motorists for missing this,” said Andris Kulbergs.
Now the Saeima, at the request of opposition deputies, will start correcting the errors. However, it is unlikely that the Ministry of Finance will be happy to admit that it has misled not only the Saeima but also the government in preparing these amendments, whether intentionally or unintentionally. Let me repeat myself, the EU directives do not demand MTPL for each and every vehicle, unless it is removed from the registry and bears no registration plate. It indicates that the state must assume responsibility and cover the damage caused by such stationary riders to the health or property of third parties (Article 14 of the Directive). These losses can be covered by the insurers’ guarantee fund. However, let’s admit that insurers would love to receive MTPL payment for each and every car in the garage, rather than paying compensation every ten or twenty years for an accident.
We can expect public servants, inspired by the lobbies of insurance companies, will start groaning that removing an unused vehicle from the records, requires neither effort or energy. I would like to ask these Saeima deputies – who will keep track of MTPL payments for unused vehicles and how? Will they create brand new bureaucratic apparatus with inspectors, accountants and whatever else? Are deputies aware that CSDD customer service centres usually have queues, and working people rarely have the time and desire to spend a whole day just to hand over the registration plates and then another day to get it back again? And, generally speaking, why the hell is it even necessary carry the plate around back and forth if it is much easier to do using digital solutions – using CSDD portal, for example.
It will be interesting to watch who will play the first violin in efforts to fix this – those who rely on common sense and elementary requirements dictated by logic, or those who will want at all costs to hold the cant of infallibility of the Ministry of Finance and possibly also serve the interests of insurers.