What is the law on the Finnish Motor Insurers' Centre, what changes are there?
The previously separate decree has now been integrated into the new Act governing motor liability insurance. The act obligates companies granting motor liability insurance to be members of the Finnish Motor Insurers' Centre (LVK) as well laying down provisions for the administration and funding of the centre. In addition, the State Treasury will become a member of LVK.
The new law states that LVK no longer determines the payment for failing to take motor liability insurance (compensation fee), but it is now done by the State Treasury based on a recommendation by LVK.
What kind of claims LVK compensates in future?
LVK continues to compensate traffic accidents caused by uninsured, unknown and foreign vehicles as well as reindeer damage caused by vehicles to the owners of the reindeer.
As a result of the new law, LVK compensates damage caused by vehicles that have been freed from their insurance obligation. This task belonged to the State Treasury before.
In addition, LVK continues to compensate damage in those situations in which a vehicle's motor liability insurance has been cancelled as a consequence of the vehicle having been stolen.