MANDATORY THIRD-PARTY LIABILITY (TPL) INSURANCE
Legal Framework, Coverage, and Importance of Third-Party Liability Insurance
Mandatory Motor Third-Party Liability Insurance (MTPL – Motor Third Party Liability) is one of the fundamental instruments of the motor insurance system and a legal mechanism established to ensure the protection of persons who suffer damage as a result of the use of motor vehicles.
In the Republic of Albania, every motor vehicle circulating within the territory of the country must be covered by a valid MTPL insurance policy, in accordance with the legislation in force. This insurance covers the civil liability of the vehicle owner, holder, or user for damage caused to third parties, within the limits established by law and the terms and conditions of the insurance contract.
This article provides information on the legal framework, the scope and purpose of the insurance, the basic procedures to be followed in the event of an accident, as well as the key information every vehicle user should know about this type of insurance.
ℹ️ The information provided in this article is for informational purposes only. The rights and obligations of the parties are governed by the provisions of Law No. 32/2021 “On Mandatory Insurance in the Transport Sector,” the applicable secondary legislation, and the terms and conditions of the insurance contract.
Mandatory Motor Third-Party Liability Insurance is governed by Albanian legislation on mandatory insurance in the transport sector.
The legal framework includes:
Law No. 32/2021 “On Mandatory Insurance in the Transport Sector”;
secondary legislation issued pursuant to this Law;
regulations, methodologies, and guidelines approved by the Albanian Financial Supervisory Authority (AMF).
This framework sets out the obligations of motor vehicle owners, the rights of injured third parties, the procedures for handling claims for compensation, as well as the responsibilities of insurance companies operating in this field.
Mandatory Motor Third-Party Liability Insurance (MTPL) is a compulsory form of insurance that covers the civil liability of the owner, holder, or user of a motor vehicle for damage caused to third parties as a result of the use of the vehicle.
The purpose of this insurance is not to protect the insured’s own vehicle, but to ensure compensation for property damage and/or bodily injury caused to third parties, in accordance with the applicable legislation.
If the driver of the vehicle is responsible for causing an accident, Mandatory Motor Third-Party Liability Insurance (MTPL) covers the obligation to compensate the injured party, within the liability limits established by law and the insurance contract.
Mandatory Nature of TPL Insurance
Having a valid TPL insurance policy is a legal requirement for every motor vehicle used on public roads within the territory of the Republic of Albania.
This requirement is intended to ensure the protection of injured third parties, the effective functioning of the compensation system, and the fulfilment of civil liability arising from the use of motor vehicles.
Through this mechanism:
the interests of injured third parties are protected;
claims for compensation are handled in accordance with the applicable legislation;
civil liability in road traffic is reinforced;
the functioning of the mandatory insurance system is supported.
ℹ️ Using a motor vehicle without a valid insurance policy constitutes a violation of Albanian legislation and is subject to the administrative penalties provided by law.
Type of Insurance
Mandatory Insurance
Scope of insurance
Third-party liability
Legal framework
Law No. 32/2021
Supervisory authority
Financial Supervisory Authority (AMF)
Obligated entities
Every motor vehicle circulating in the Republic of Albania
Mandatory Motor Third-Party Liability Insurance (MTPL) covers civil liability arising from the use of a motor vehicle when such use causes damage to third parties.
Coverage applies when, as a result of a road traffic accident, a legal obligation arises to compensate the injured parties, in accordance with the applicable legislation and the terms and conditions of the insurance contract.
In general, coverage includes:
Bodily injury or loss of life of third parties.
Property damage caused to other vehicles.
Damage to public or private property.
Damage caused to pedestrians, cyclists, and other road users.
ℹ️ The damage assessment process and the handling of compensation claims are carried out in accordance with the procedures established by the relevant legislation and the contractual documentation of the insurance policy.
Bodily injury
Compensation for bodily injury or loss of life of third parties.
Property damage
Coverage for damage to third-party vehicles and property.
Public property
Damage to infrastructure and public property.
Other road users
Coverage for damage caused to pedestrians and cyclists.
Mandatory Motor Third-Party Liability Insurance (MTPL) has a clearly defined scope and does not cover every type of damage that may be associated with the use of a motor vehicle.
In general, the following are not covered:
Damage to the vehicle of the person responsible for the accident.
Damage that is not related to third-party liability.
Cases excluded under the applicable legislation.
Cases specified as exclusions in the terms and conditions of the insurance contract.
Legal reference
Coverage limits and exclusions are determined by the applicable Albanian legislation and the terms and conditions of the insurance contract.
Entities subject to the MTPL insurance requirement
Under Albanian legislation, every motor vehicle used on public roads must be covered by a valid Mandatory Motor Third-Party Liability Insurance (MTPL) policy.
This requirement applies to vehicles registered in the Republic of Albania, as well as in other cases provided for by the applicable legislation.
Failure to hold a valid insurance policy constitutes a breach of legal requirements and may result in the administrative and financial consequences provided for by law.
ℹ️ Mandatory Motor Third-Party Liability Insurance (MTPL) is a liability insurance policy and does not cover damage to the vehicle of the person responsible for the accident. Voluntary insurance products, such as Casco Insurance, are available to cover such damage.
In the event of a road traffic accident, the actions taken immediately following the incident are important both for ensuring the safety of those involved and for the proper handling of the claims process.
Depending on the nature of the incident, it is recommended that the following steps be taken:
1. Ensure safety at the scene
Stop the vehicle in a safe location, activate the hazard warning lights, and take the necessary measures to prevent further risks to other road users.
2. Check the condition of the persons involved
If anyone is injured, immediately contact the emergency services and the competent authorities.
3. Document the circumstances of the accident
Exchange information with the parties involved and document the scene of the accident, the damage to the vehicles, and any other details that may be necessary for handling the claim.
4. Complete the European Accident Statement
In the cases provided for by the applicable legislation and where the relevant conditions are met, the European Accident Statement may be used to document the accident and process property damage claims.
5. Notify the insurance company
Notify the insurance company as soon as possible and submit the required documentation in accordance with the applicable procedures. Timely submission of the claim and the relevant documentation helps ensure a more efficient assessment and compensation process.
📋 Recommended
Keeping photographs, documents, and any other evidence related to the incident may help facilitate the review of the claim for compensation.
VI. FREQUENTLY ASKED QUESTIONS
Yes. Every motor vehicle used on public roads in the Republic of Albania must be covered by a valid insurance policy, in accordance with the applicable legislation.
No. TPL Insurance covers only third-party liability. Voluntary insurance products, such as Casco Insurance, are available to cover damage to the insured’s own vehicle.
Yes. In accordance with the applicable legislation and the terms and conditions of the insurance contract, damage caused to pedestrians and other road users is also covered.
It is recommended that you ensure safety at the scene, document the circumstances of the accident, exchange information with the parties involved, and notify the insurance company as soon as possible.
For information about Mandatory Motor Insurance, insurance terms and conditions, or claims handling procedures, you can contact INTERSIG Vienna Insurance Group at info@intersig.al or visit the relevant section of the website for Mandatory TPL Insurance .
VII. HOW CAN INTERSIG VIENNA INSURANCE GROUP HELP YOU?
INTERSIG Vienna Insurance Group sh.a. operates in the non-life insurance sector in accordance with the legislation of the Republic of Albania and is part of Vienna Insurance Group (VIG), the Leading Insurance Group in Central and Eastern Europe.
The company offers a wide range of insurance products for individuals and businesses, supported by professionalism, transparency, and high service standards.
Through its network of branches and partners across the country, INTERSIG aims to provide lasting protection and reliable solutions for its customers.
Sources and references
This article has been prepared based on:
Law No. 32/2021 “On Mandatory Insurance in the Transport Sector”;
Secondary legislation adopted pursuant to this Law;
Regulations and guidelines issued by the Financial Supervisory Authority (AMF);
Standard insurance product documentation of INTERSIG Vienna Insurance Group.
Mandatory Motor Insurance (MTPL) is an essential component of the motor insurance system and an important mechanism for protecting the interests of persons who may suffer damage as a result of the use of motor vehicles.
Understanding the legal framework, scope of coverage, obligations arising from this insurance, and the procedures to be followed in the event of an accident helps vehicle users better understand their rights and responsibilities, while also contributing to the promotion of greater insurance awareness and responsibility in road traffic.