Compulsory carrier's liability insurance is a document that covers damage to life, health and property of passengers caused by the insured during the organized transport of passengers. It is available to both legal persons, irrespective of the type of organization, and natural persons operating on the basis of a licence for the carriage of persons by air, road, rail or inland waterway.
Carriers must take out an insurance contract every year before obtaining a license to carry passengers. However, this insurance is not required for the carriage of passengers by urban and suburban road transport (ferries and inland waterway transport for trips and excursions).
If an insured event has occurred, then the insurance company will pay the compensation necessary to compensate for the actual damage caused, in accordance with the limits and conditions stipulated in Articles 8 and 12 of Law №1553 of 25.02.1998 "On compulsory insurance of carriers' liability insurance for passengers".
