Latvia should consider introducing compulsory third-party liability insurance for motorised watercraft

BTA: Tragic accidents on the water – Latvia should consider introducing compulsory third-party liability insurance for motorised watercraft

Given that motorised watercraft are becoming increasingly popular, creating additional risks to water traffic and often resulting in tragic accidents, Latvia needs to initiate a discussion on compulsory third-party liability insurance (MTPL) for motorised watercraft, suggests BTA Baltic Insurance Company AAS (hereinafter – BTA). Evija Matveja, BTA Board member points out, in the event of an accident, such a solution – incorporating third-party liability cover – would provide protection for victims in a similar way to the current arrangements for road traffic.

Motorboats and cutters can reach considerable speeds of up to 70 km/h, whilst jet skis can reach speeds of up to 100 km/h. If such a vessel collides with another watercraft or a swimmer, the consequences of the accident can be severe, ranging from damage to property to serious bodily injury and even fatalities.

“A jet ski or a high-powered motorboat is not merely a piece of recreational equipment. It is a vehicle whose careless use can have very serious consequences. If another person has been injured in an accident, they should not be left in a situation where compensation for their losses depends solely on the financial means of the person at fault or on a protracted dispute. At present, using a vehicle on the road also entails liability for any harm that may be caused to others. The situation is different on the water – even when a powerful vessel is used, there is no comprehensive and compulsory mechanism to guarantee compensation for the victim in the event of an accident. “We believe that the time has come to push for significant changes to the regulations, clarifying liability issues in water transport as well,” explains Evija Matveja, BTA Board Member.

She adds that voluntary insurance solutions are already available on the Latvian market, such as BTA’s recreational watercraft insurance, which also includes third-party liability cover for damage to third parties’ property, health or life. However, as such insurance is not compulsory, many owners of motorised watercraft choose to insure only the watercraft itself or its engine, without paying sufficient attention to potential third-party liability towards others.

The regulations, however, should specifically cover motorised watercraft, the mechanism for monitoring them, and the procedure by which victims would receive compensation in the event of an accident – the MTPL system for land motor vehicles currently operates on a similar principle.

“In Latvia, the main purpose of MTPL is to protect a person who has suffered losses as a result of another driver’s actions. Regulations governing electric scooters have also evolved in response to the growing prevalence of these vehicles and the risks they pose to third parties. Therefore, the discussion as to whether a similar principle of protection should also apply to certain categories of motorised watercraft is justified. Furthermore, we must consider not only the liability of the operators of watercraft but also that of their owners, as, for example, jet skis are often available for hire at leisure centres,” notes Jānis Abāšins, Chairman of the Board of the Latvian Motor Insurers’ Bureau.

Overall, water safety affects a very broad section of the public, as a single body of water may simultaneously be used by fishermen in small boats, sailors, SUP paddleboarders, swimmers and operators of powerful motorboats or jet skis. During the particularly busy holiday season, the interaction between these groups also increases the risk of accidents. This is also confirmed by the State Police, who remind us that safety requirements on the water must be observed not only by swimmers, but also by operators of jet skis, motorboats and other watercraft. Particular attention must be paid when on the water with a child – parents often choose a lifejacket that is the wrong size for their child or fail to fasten it correctly.

“Operating a watercraft requires responsibility, knowledge and caution. During the warmer months, the State Police carry out surveillance on bodies of water, paying particular attention to compliance with safety requirements, driving licences and potential alcohol consumption. We urge both watercraft operators and service providers to take a responsible approach to safety and to assess potential risks,” says Līna Bagdone, Senior Specialist at the State Police Public Relations Department.