On 26 October, 2016, the Department of Civil Cases of the Supreme Court decided to reject initiating of cassation proceedings, thus ruling of the December, 2015, of Riga Regional Court Civil Cases panel that partially satisfies the claim have entered into force.
On behalf of the applicant insurance compensation in the amount of 42 401.58 EUR are reclaimed from the insurance company Baltikums; this amount is related to mental suffering caused by the loss of provider. But the claim is rejected in the part as related to the reclaim of insurance premium in the amount of 242 172.78 EUR.
On 25 February, 2015, the Supreme Court while reviewing case in the cassation proceedings; forwarded the case for new revision in the appellation instance. Reviewing the case in the appellation procedure Riga District Court had not only to determine appropriate remuneration accordingly to OCTA law and requirements of previously mentioned European Union directives but also justify why it evaluating all significant circumstances in determining of fair compensation including the insurance compensation calculation criteria stipulated in the valid Regulations No. 340 of the Cabinet of Ministers, adopted on 17 June, 2014, “Regulations about the amount and calculation procedure of insurance compensation for non-material damages caused to the person” considered the compensation as appropriate.
During the revision of the case Supreme Court twice stopped the proceedings in the case – once to ask prejudicial questions in the European Court of Justice and second – to submit application in the Constitutional Court.
On 12 May, 2012, the Department of Civil Cases of the Supreme Court stopped proceedings in relation to asking of prejudicial questions to the European Court of Justice. Court adopted this decision because representatives of the applicant and defendant in the court proceedings expressed an opinion that national legislation determining maximum amount of non-material damage compensation is irrelevant to the Directive of European Union Council. In its ruling European Court of Justice have implied that member states should secure that compulsory insurance compensation which accordingly to national legislation about civil liability should be paid for non-material losses would be covered in the minimal amount determined in the directive.
On 18 December, 2013, the Department of Civil Cases of the Supreme Court determined to stop proceedings in the case and submit application in the Constitutional Court about announcing that Paragraph 7 of the Regulations of the Cabinet of Ministers of the Republic of Latvia adopted on 17 May, 2005, „Regulations about the amount and calculation procedure of insurance compensation for non-material damages caused to the person” does not comply with the Paragraph 1, Section One of the Clause 15 of Compulsory Civil Liability Insurance of Owners of Motor Vehicles Law and sentence three of the Clause 92 of Constitution.
Case has the following circumstances:
Guardian of the applicant instituted court proceedings against AAS Baltikums after the first instance court ruling acknowledged that driver of the vehicle is recognized guilty who on February, 2006, driving under the influence of alcohol and making overtaking manoeuvre, caused collision with the oncoming vehicle where parents of the applicant were. Both parents of the applicant were killed due to this road traffic accident. At the moment of the tragic accident applicant was 10 years old. Guardian of the applicant asked the court to reclaim from AAS Baltikums an insurance compensation in the amount of Ls 200 000 for non-material damages related to the mental suffering of the applicant in relation to the parents death.
Insurance company Baltikums has paid to the applicant insurance compensation for material damages Ls 4497.47 and accordingly to the Regulations of the Cabinet of Ministers for the pain and mental suffering in case of the death of provider Ls 100 for each of the parents, in total Ls 200.
Guardian of the applicant considers the insurance amount determined in the Regulations of the Cabinet of Ministers for pain and mental sufferings in case of the death of provider in the amount of Ls 100 is disproportionately low and in contradiction to the Clause 15 Paragraph 1 Section of the Compulsory Civil Liability Insurance of Owners of Motor Vehicles Law (in the editing that was valid from 1 May, 2004, until 1 November) that provides insurer’s liability limit determining compensation of damages caused to the person up to 250 000 lats for each suffered person. Also guardian of the applicant considers that above-mentioned regulations of the Cabinet of Ministers are in contradiction to the Directive of the European Council adopted on 24 April, 1972, and 30 December, 1983.
Information prepared by Baiba Kataja, the Press Secretary of the Supreme Court
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