Lithuania / Lituania

Imperative legal norms protecting public order, which are mandatory for intermediaries of other Member States of The European Union which are undertaking activities in the Republic of Lithuania

Imperative legal norms, which are mandatory for insurance intermediaries of other Member States of the European Union which are undertaking activities in the Republic of Lithuania are stipulated in the Law Concerning Approval, Coming to Force and Implementation of the Civil Code of the Republic of Lithuania No. VIII-1864 of 18 July 2000 (Žin., 2000, No. 74–2262), the Law on Insurance No. IX–1737 of 18 September 2003 (Žin., 2003, No. 94–4246), the Law on Compulsory Motor Third Party Civil Liability Insurance of 17 May 2007, No. X-1137 (Žin., 2007, No. 61–2340) and other legislation. This overview provides only key provisions of the aforementioned legal acts. The current editions of the legislation and their translations are published on the web site www.lrs.lt.

I. Civil Code

The Civil Code regulates general issues concerning conclusion of agreements, their legal force, form, content, execution, termination and other relevant issues, and regulates insurance relations. (Articles 6.155–6.228, 6.987–6.1018).

II. Law on Insurance

The Law on Insurance stipulates requirements for professional liability insurance, providing of information to the policyholders, insured, beneficiaries and injured party and other issues.

III. Law on Compulsory Motor Third Party Civil Liability Insurance

Mandatory provisions of this law must be applied for intermediaries of other Member States of the European Union and they are related to conclusion of compulsory motor third party liability insurance agreements and other issues.

IV. Law on Consumer Protection

Law on Consumer Protection No. X–1014 of 12 January 2007 (Žin., 2007, No. 12–488) stipulates that a service provider must provide to consumers information established in the Civil Code and other legal acts in the state language. All external and internal plates designated for consumers at sales and service outlets, including names of sales and service outlets, must be in the state language.

Service suppliers must follow fair business practices while offering to buy or rendering services to consumers. Services should be offered in such a manner that commercial nature of the offer would be clear to the consumer.

V. Law on the State Language No. I-779 of 31 January 1995 (Žin., 1995, No. 15-344)

Article 9 of this law establishes that transactions with natural and legal persons from foreign states are conducted in the state language and another language acceptable to both parties.

               VI. Regulations of the Register of Legal Persons approved by Resolution No. 1407 “Concerning Establishment of the Register of Legal Persons and Approval of the Regulations for the Register of Legal Persons” adopted by the Government of the Republic of Lithuania on 12 November 2003 (Žin., 2003, No. 107–4810)

            The regulations regulate the purpose and the objects of the Register of Legal Persons, the register management bodies and their rights and duties, registration of the register objects as well as management, reorganisation and liquidation of the register. These regulations also envisage which documents should be submitted for incorporation of a branch or a representative office and which data of branches or representative offices and their incorporators are registered and managed.

VII. Taxes

The main legal acts regulating tax payment issues are the following:

1. The Law on Profit Tax of the Republic of Lithuania adopted on 20 December 2001 (Žin., 2001, No. 110-3992)

            This Law stipulates the procedure for the taxing of profits earned and/or revenues generated with the profit tax.

2. The Law on Resident Revenue Tax No. IX-1007 adopted on 2 July 2002 (Žin., 2002, No. 73-3085).

            This Law stipulates the procedure for the taxing of resident revenues with the resident revenue tax.

            3. Order No. VA-52 of the Head of the State Tax Inspectorate under the Ministry of Finance regarding “Rules on the Registration (Deregistration) of a Foreign Legal Entity with the Register of Tax Payers” of 14 June 2005 ( Žin., 2005, No. 77-2804) that stipulate cases when a person must register as a tax payer and the registration procedure.

VIII. Legal Acts Regulating Labour Relations

The main legal act regulating labour relations is the Labour Code adopted by the Law No. IX-926 on 4 June 2002 (Žin., 2002, No. 64–2569). The Code includes provisions related to subjects of the labour law, collective labour relations (collective agreements, regulation of collective labour disputes), individual labour relations (labour agreement, labour remuneration, guarantees and compensations, and labour disputes) and others.

               The new edition of the Law on Social Insurance of Occupational Accidents and Occupational Diseases of the Republic of Lithuania No. IX-1819 adopted on 11 November 2003, (Žin., 2003, No. 114–5114) regulates the relations of social insurance of occupational accident and occupational disease occurrences while working, en route to and from work, stipulates the categories of persons who shall be insured with this type of social insurance, rights to such insurance benefits, conditions, calculation and payment of benefits, and defines insurable and non-insurable occurrences.

The Law on State Social Insurance of the Republic of Lithuania No. I-1336 adopted on 31 May 1991 (Žin., 1991, No. 17–447) stipulates that state social insurance is obligatory for persons working under employment contracts. The Law establishes the obligation of the payer of the social insurance contributions to calculate correctly and timely and to pay social insurance contributions according to the rates and terms provided in the legal acts.

IX. Requirements on Use of Advertising

            The requirements on use of advertising, the obligations of the subjects of advertising activities, and the legal grounds for control of use of advertising in the Republic of Lithuania are stipulated in the Law on Advertising of the Republic of Lithuania No. VIII-1871 adopted on 18 July 2000 (Žin., 2000, No. 64–1937).

            X. Personal Data Protection

            Law on Legal Protection of Personal Data of the Republic of Lithuania No. IX-1296 of 21 January 2003 (Žin., 2003, No. 15-597) establishes the rights of natural persons as data subjects, the procedure for protection of these rights, the rights of legal and natural persons and duties and responsibilities in management of personal data.

XI. Conditions of Compulsory Insurance

The main legal acts stipulating the conditions of compulsory insurance are the following:

1. Resolution No. N-91 “Concerning Approval of Regulations for Compulsory Civil Liability Insurance of Audit Companies” adopted by the Insurance Supervisory Commission of the Republic of Lithuania on 22 June 2004 (Žin., 2004, No.100-3741);

2. Resolution No. 580 “Concerning Approval of Regulations for Compulsory Professional Civil Liability Insurance of Notaries” adopted by the Government of the Republic of Lithuania on 8 May 2003 (Žin., 2003, No. 47–2079);

3. Resolution No. 957 “Concerning Approval of Regulations for Compulsory Professional Civil Liability Insurance of Bailiffs” adopted by the Government of the Republic of Lithuania on 12 August 2003 (Žin., 2004, No. 128–4605);

4. Resolution No. 79 “Concerning Approval of Regulations for Compulsory Civil Liability Insurance of Contractors” approved by the Board of the State Insurance Supervisory Authority under the Ministry of Finance on 30 April 2002 (Žin., 2002, No.46-1779);

5. Resolution No. 78 “Concerning Approval of Regulations for Compulsory Civil Liability Insurance of Construction Planners” approved by the Board of the State Insurance Supervisory Authority under the Ministry of Finance on 30 April 2002 (Žin., 2002 No.46-1778);

6. Order No. 745 “Concerning Approval of Regulations for Compulsory Civil Liability Insurance of Main Researchers and Contractors of Biomedical Research” adopted by the Ministry of Health of the Republic of Lithuania on 20 December 2000 (Žin., 2000, No.110-3550);

7. Resolution No. 1067 “Concerning Approval of Regulations for Compulsory Professional Civil Liability Insurance of Lawyers” adopted by the Government of the Republic of Lithuania on 26 August 2004 (Žin., 2004, No. 133–4796);

8. Order No. V-6 “Concerning the Approval of the Procedure for Compulsory Civil Liability Insurance of Health Care Institutions against Damage Made to Patients” adopted by the Minister of Health of the Republic of Lithuania on 6 January 2005 (Žin., 2005, No. 3-50);

9. Resolution No. N-113 “Concerning the Approval of the Regulations for Compulsory Civil Liability Insurance of Insurance Intermediaries” adopted by the Insurance Supervisory Commission of the Republic of Lithuania on 28 September 2004 (Žin., 2004, No. 146-5323);

10. Order No. 2 “Concerning Application of Financial Guarantee Regulations for Travel Organisation Services” adopted by the State Tourism Department under the Ministry of Administrative Reforms and Local Governance of 12 January 2000 (Žin., 2000, No. 6–175).

XII. Other legislation

1. Resolution No. N-68 “Concerning approval of order for the insurance undertakings and insurance brokers undertakings pursuing to prevent money laundering” adopted by The Insurance Supervisory Commission of the Republic of Lithuania on 15 March 2005 (Žin., 2005, No 37-1221),

2. Resolution No. N-30 “Concerning information that shall be delivered by insurance intermediaries to the customers” adopted by the Insurance Supervisory Commission of the Republic of Lithuania on 16 March 2004 (Žin., 2004, No. 42-1406);

3. Resolution No. N-74 “On the approval of the description of the procedure for the provision of information to policyholders on life assurance related to investment funds (where the policyholder bears the investment risk)” adopted by the Insurance Supervisory Commission of the Republic of Lithuania on 11 July 2006.

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