The Czech government has ushered in a new legislative era by approving a comprehensive law that significantly widens the ambit of mandatory liability insurance, encompassing an array of vehicles that were previously outside its purview. This step aims to enhance safety on the roads and ensure adequate protection for all parties involved.

Under the newly ratified regulations, individuals operating a range of vehicles, such as electric scooters, Segways, snowmobiles, and motorized golf carts, will be obligated to secure mandatory liability insurance. A notable shift from the previous model, the law mandates that the responsibility for funding this insurance coverage will rest with the operator of the vehicle, rather than its owner.

This progressive legislation not only pertains to these unconventional modes of transport but also redefines the parameters of vehicles subject to the mandatory liability insurance requirement. It encompasses motorized vehicles that can attain speeds above 25 kilometers per hour or have a weight surpassing 25 kilograms, accompanied by a maximum speed exceeding 14 kilometers per hour.

Furthermore, the law delineates motor vehicles as those in which the primary source of propulsion is the motor. Notably exempted are electric bicycles, which prominently rely on pedaling for propulsion, and garden tractors limited to operation on private property.

A key innovation introduced by this legislation is the shift in liability insurance enforcement to the vehicle’s operator, addressing previous challenges with enforcing violations, monitoring insurance coverage lapses, and determining insurance premiums based on driving history.

Furthermore, the need for a “green card” as proof of domestic insurance coverage is eliminated by this law, transforming it into an international certificate of insurance for cross-border travel.

In tandem with these transformative measures, the new law enhances the minimum liability coverage limits for bodily injury, death, and property damage, raising the threshold from 25 million Czech koruna to 50 million Czech koruna across all scenarios.

This comprehensive legislation is slated to come into effect on December 23, 2023. Following its implementation, individuals operating the stipulated vehicles will be obliged to secure the requisite liability insurance coverage. The government’s overarching objective is to ensure comprehensive coverage for all operators in the event of an accident, enhancing road safety while facilitating more accurate risk assessment and premium calculation for insurance providers.

This forward-looking legislation underscores the Czech government’s commitment to fostering safer road environments and aligning insurance coverage with evolving modes of transportation.

Article by Prague Forum