AbstractMotor third party liability (MTPL) is one of the most important lines of insurance business, in developed and in developing countries, as well. The legal framework in the European Union's Member States is determined with five Directives for motor insurance. Countries aspiring to join the European Union (EU) need to harmonise their national legislation in accordance with the requirements of these directives. The topic of this paper is to present an analysis of motor third party liability insurance market in terms of changing regulation. The main emphasis is directed towards the implementation of the Directives from the EU in the legislation of the Republic of Macedonia, regarding the question of the pricing for this class of insurance. There will be an analysis of the advantages and disadvantages as a result of turning from a state-regulated system to a liberal tariff regime for MTPL.