Compulsory TPL insurance policy (Third-Party Liability) — pursuant to Law No. 32/2021.
TPL (Third-Party Liability) insurance is compulsory for motor vehicles in the Republic of Albania and is regulated by Law No. 32/2021 “On Compulsory Insurance in the Transport Sector.” This insurance covers the legal liability of the owner or user of a motor vehicle for property damage and bodily injury caused to third parties as a result of using the vehicle on public roads.
Under this legal framework, the primary purpose of TPL insurance is to protect victims of road accidents by ensuring prompt and fair compensation for the damage or injuries sustained, without requiring the driver to cover the costs directly. TPL insurance is mandatory for every vehicle operating within the territory of Albania and is a legal requirement for its use on public roads.
Law No. 32/2021 has also modernised the compulsory transport insurance system by aligning it with European Union directives and strengthening the mechanisms for compensating and protecting parties affected by road accidents. TPL insurance therefore represents an essential instrument for road safety and financial stability within the transport sector.
TPL insurance covers the legal liability of the owner or user of a motor vehicle for property damage and bodily injury caused to third parties as a result of using the vehicle on public roads.
Under the applicable legal framework and the gradual implementation of its provisions, the applicable compensation limits—or the maximum amounts payable by the insurance company for damage arising from a single insured event (road accident) within the territory of Albania—are as follows:
For damage resulting in death, bodily injury, or deterioration of health caused by an accident or series of accidents arising from a single insured event:
For buses and trucks, including trailers — ALL 150,000,000
For vehicles transporting hazardous materials — ALL 200,000,000
For other vehicles, including unidentified vehicles — ALL 75,000,000
For damage involving the impairment or destruction of property arising from a single event:
For buses and trucks, including trailers — ALL 20,000,000
For vehicles transporting hazardous materials — ALL 20,000,000
For other vehicles, including unidentified vehicles — ALL 15,000,000
For bodily injury or death — up to ALL 32,000,000 per injured person
Yes. Every motor vehicle used on public roads in the Republic of Albania must have a valid insurance policy, in accordance with the legislation in force.
No. TPL insurance covers only third-party liability. Voluntary insurance products, such as Casco insurance, are available to cover damage to the insured vehicle.
Yes. In accordance with the legislation in force and the terms of the insurance contract, injuries caused to pedestrians and other road users are also covered.
You should ensure everyone’s safety at the scene, document the circumstances of the accident, exchange details with the parties involved, and notify the insurance company as soon as possible.
