Motor vehicle liability insurance

The Motor Vehicle Liability Insurance Act of 1994 stipulates that motor vehicle liability insurance shall be required for all registered vehicles. The insurance covers the settling of justified claims and the defence of unjustified claims that are raised against the policyholders or other insured persons, if the use of the insured vehicle results in the injury or death of persons, if assets are damaged, destroyed or lost, or if financial damage is caused that is neither a personal injury nor damage to property (a purely financial loss).