The following work considers the institute of loss of rights from motor liability insurance policy. The institute is foremost placed into its belonging legal framework with a brief general overview of the compulsory traffic insurances. This includes an emphasis on the motor liability insurance policy, in whose domain the loss of rights included in the policy belongs. Subsequently, the reasons for the loss of rights are closely inspected and explained on a theoretical level, but also within the context of actual situations in the practice from the Croatian courts. The thesis closely inspects the consequence caused by the loss of rights from motor liability insurance - recourse of insurers, and the differences in relations to the institute of subrogation, with special treatment of the institute of statute of limitations, which is still controversial in Croatian law. At the very end, this thesis also compares the institute of loss of rights from the insurance, and the institute of exclusion from the insurance, which share certain similarities, but it is even more important to point out their differences so that there would be no potential substitution or confusion between the two institutes