Czech lawmakers have put forth proposed changes to the law governing liability insurance for vehicle operations, signaling a move toward stricter regulations. The envisaged legislation aims to broaden the range of vehicles mandatorily covered by insurance and elevate the minimum insurance limit from 35 million to 50 million korunas. This proposal comes in response to concerns that the existing limit may prove inadequate, particularly in cases involving severe health damage.

One of the key elements of the proposed law is the extension of insurance obligations to encompass various vehicles, including electric scooters. This adjustment reflects an ongoing effort to adapt to the evolving transportation landscape, marked by the increasing popularity of electric vehicles.

The economic committee of the Chamber of Deputies has recommended the approval of the proposed law, accompanied by several clarifying provisions. Notably, the legislation aims to elucidate the causal link between a vehicle’s technical condition and an accident. Insurance companies will be tasked with substantiating that a motorist’s violation of the vehicle’s technical condition obligations directly led to the damage.

Furthermore, the committee has proposed enhancing transparency regarding the provision allowing insurance companies to reclaim money from a motorist that had been previously paid out as compensation for victim damages. In this scenario, insurers must demonstrate that the motorist breached technical condition obligations, resulting in the damage.

Originally slated to take effect on December 23 of this year, the committee has recommended pushing back the effective date to the first day of the second calendar month following the law’s publication in the collection of rules. Through these proposed changes, lawmakers seek to ensure that the regulations surrounding vehicle insurance are not only stringent but also adaptable to the challenges presented by the evolving transportation landscape.

Article by Prague Forum