what drivers can now expect after an accident



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“Different market participants had chosen different solutions and there was a lot of uncertainty in their internal procedures. In line with good market practices, we have offered insurers possible solutions to improve the customer experience and we see that the market situation has improved. .

We will continue to address certain deficiencies in the provision of financial services to financial market participants, mainly through dialogue with the market, ”says Jekaterina Govina, Director of the Supervisory Authority of the Bank of Lithuania.

The Bank of Lithuania conducted an analysis of how Lithuanian insurance companies provide a replacement vehicle in 2020 and published a review with good practice examples and recommendations for market participants. In the second quarter of this year, the central bank verified compliance with these recommendations by market participants.

After evaluating the market practice, the Bank of Lithuania offered insurance market participants to enter into cooperation agreements on a replacement car with companies providing car rental services; Due to a faster and more efficient process, such cooperation is beneficial for both insurance companies and people in need. of such services.

In addition, the central bank recommended that the procedure for providing a replacement vehicle and reimbursing related costs be described in the internal rules and posted on the insurer’s website.

Furthermore, to avoid misunderstandings at the damage management stage, the Bank of Lithuania recommended providing information on the conditions for providing a replacement car or rental costs to consumers as early and clearly as possible, requesting only essential documents that justify the rental of the replacement vehicle. period, price and need.

Almost all insurers that did not have a replacement car partner had entered into cooperation agreements with companies or auto repair shops that provided this type of rental service.

Insurance companies that did not have procedures or processes for providing a replacement car have approved them and have improved their claims management processes when it comes to providing a replacement car.

All of these changes will benefit consumers by making the conditions for providing a replacement car much clearer and the process itself more seamless.

If the car was involved in a traffic accident caused by the fault of another driver, the victim has the right to request a replacement car or compensation for transportation costs during the period that the car is being repaired.

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