The new Motor Liability Insurance Act entered into Force on January 1 2017, renewing the previous act from 1959. The reform process began in 2004 and the end result is a clear and easily understandable act which responds to existing and future needs.
Motor liability insurance safeguards the innocent party’s legal protection and compensation. The protection given by motor liability insurance in the act remains as broad as before. The obligation to insure remains but the consequences of failing to insure are now more severe. The basic compensation principles have not changed but the claims process has now been more accurately specified. The insurer has right of recourse against a third party and as a new aspect the right of recourse is also against a person that is liable under the Product Liability Act.
Partner Matti Komonen from HPP Attorneys Ltd has written an update on this matter. The update titled “New Motor Liability Insurance Act enters into force” has been published in the International Law Office´s newsletter.