The Motor Vehicle Liability Insurance Act: Essential Knowledge for Road Traffic Victims

As an experienced personal injury lawyer, I would like to highlight the most important aspects of the Motor Vehicle Liability Insurance Act (WAM). This law is crucial for everyone involved in a traffic accident, both for the victims and for those who caused it. Understanding this law can contribute significantly to successful recovery of damages.

What is the WAM?

The Motor Vehicle Liability Insurance Act requires owners of motor vehicles, such as cars, motorcycles and scooters, to take out third party liability insurance. This insurance covers the damage you cause to others with your motor vehicle. The purpose of the WAM is to protect road traffic victims and guarantee them quick and certain compensation for their damages, regardless of the perpetrator’s financial situation.

Insurance obligation

Anyone who owns a motor vehicle or uses it sustainably, for example through long-term rental, is legally obliged to take out third party liability insurance. This means that you as the owner or user are liable for damage caused by your vehicle. You can take out this insurance from most insurers. Driving around without insurance is punishable in Article 30 paragraph 4 of the WAM and can lead to arrest or hefty fines.

Exceptions and Exemptions

There are some exceptions to the insurance requirement. Persons with conscientious objections to insurance are exempt, but must pay an amount into the Motor Traffic Guarantee Fund. This fund pays compensation to victims when the person responsible cannot be identified or is uninsured.

Motor Traffic Guarantee Fund

If the perpetrator is not insured or remains unknown, victims can appeal to the Motor Traffic Guarantee Fund. This fund provides a safety net and ensures that victims can still receive compensation. The fund then has a right of recourse against the liable person to recover these costs.

Direct Claim against the Insurer

In Article 7:954 of the Dutch Civil Code, the legislator has granted the injured party the authority to directly sue the insurer of the liable party to compensate the damage (the direct action). The insurer cannot invoke any defenses it might have against the insured (the perpetrator), for example that there is no insurance coverage for driving under the influence. An important advantage of the direct action is that the injured party can receive compensation for damages if the liable party has no money to pay. Without the direct action, the injured party would be left with the damage without compensation.

Advice for Road Traffic Victims

It is very important that road traffic victims are well informed about their rights and options under the WAM. As a personal injury lawyer, I recommend always seeking legal advice after a traffic accident. This can help you obtain maximum compensation and avoid any complications in the claims process.

For more detailed information on personal injury and related legal issues, please refer to some of my previous articles:

By learning about these topics you can be better prepared and make the most of your rights as a traffic victim. Please feel free to contact us for a personal consultation.