Motor Vehicle Liability Act (WAM)

The Motor Vehicle Liability Act aims to protect road users against the financial consequences of damage caused by motor vehicles. In this context, the WAM arranges various financial guarantees for anyone who may suffer damage as a result of a motor vehicle, including owners and occupants of other motor vehicles.

The five most important elements within the WAM are:
The obligation to take out insurance
A limited number of permitted exclusions
The direct right of action of the injured party
The motor traffic guarantee fund
The minimum insured sums

The insurance obligation

Every owner of a motor vehicle on the road is obliged to take out legal liability insurance for this motor vehicle. This also applies to motor vehicles that are parked or used on private property. Taking out comprehensive insurance is not mandatory. Exemption from the insurance obligation can be requested for a car that is not driven for a long period of time. This is also possible for certain periods, for example for a camper that is used for one month per year. This is of course subject to the condition that no one participates in traffic during the period of exemption. If no exemption has been applied for, the person is punishable. In order to check whether the insurance obligation of the WAM is being complied with, every insurer must report the third party liability insurance that it takes out to the RDW.

A limited number of permitted exclusions

The WAM limits the permitted exclusions from the insurance. The WAM insurer is permitted to include other exclusions in the general insurance conditions, but on the basis of the WAM it is not permitted to subsequently rely on these exclusions against injured parties. This is to protect the victim and provide financial security in the event of damage caused by a motor vehicle.

There are four exclusions from the coverage of third party liability insurance that are permitted:
The liability of the person who has appropriated the motor vehicle causing the damage through theft or violence.
Damage to items transported by the motor vehicle that
caused the damage. Damage to the driver of the motor vehicle that caused the damage. itself
Damage caused during official speed or agility competitions

The direct right of action of the injured party
A victim or injured party with damage caused by motor vehicle traffic may directly sue the insurer of the perpetrator for compensation, so this does not have to be done through the perpetrator himself. This is called direct right of action. If necessary, the injured party can check with the RDW with which insurer a motor vehicle is insured, based on the license plate.

The motor traffic guarantee fund

As mentioned, we have an insurance obligation in the Netherlands. Nevertheless, uninsured motor vehicles are still driving around. In addition, some drivers unfortunately continue driving without reporting after causing damage with their motor vehicle.

The motor traffic guarantee fund was established to provide financial protection in such situations, in which the injured party is not compensated for his damage by the insurer of the perpetrator.

The injured party can appeal to the guarantee fund if he has suffered damage due to:
Uninsured motor vehicle
Stolen motor vehicle
Unknown motor vehicle
Motor vehicle of an exempt conscientious objector
Motor vehicle insured with an insolvent insurer

The minimum insured sums
Pursuant to the 5th WAM Directive, the WAM requires the following minimum insured sums for private motor vehicles:

1. 600,000 for all victims with personal injury
2. 120,000 for the property damage caused

Amounts are indexed