The grounds are set out in the Law on compulsory civil liability insurance for owners of land vehicles.

The policyholder reimburses the insurer if they: gave false information when taking out the policy and this reduced the premium (penalty: five times the premium, capped at 50% of the payout); breached a restriction written into the contract, such as “no taxi use” or a discounted-category condition (penalty: ten times the premium, capped at 50% of the payout); or failed to hand over accident documents within seven working days of receiving them where this mattered to the settlement (the insurer’s losses).

The at-fault driver reimburses the insurer or the MTSBU if they: were driving under the influence of alcohol, drugs or medication that slows reactions; drove without a licence or without the right category; left the scene or refused a sobriety test; caused the accident through a technical defect in the vehicle or its equipment; used the insured vehicle in a criminal offence; or used a vehicle insured on a discounted basis without being entitled to the discount.

The MTSBU has a right of recovery against anyone who caused an accident in a vehicle with no live MTPL policy on the date, or against whoever bears civil liability for the damage — the owner, typically.