- Hans Weber
- December 6, 2023
Major Changes Expected in Czech Compulsory Liability Insurance Laws
A significant overhaul of compulsory liability insurance is anticipated in the Czech Republic by the end of the year. Key proposed amendments, currently under review by Members of Parliament, are poised to bring about higher minimum coverage limits for damage, and make liability insurance obligatory for faster electric scooters. Below are the primary changes expected:
Change in Responsibility: Liability insurance responsibility will shift from the owner to the operator of the vehicle. However, this doesn’t preclude anyone in need of protection against insured events from arranging insurance. So, in scenarios like lending a vehicle to children or using car-sharing services, those who borrow the vehicle for short periods won’t be considered operators. Only when the vehicle is gifted to someone, making them long-term operators with ownership rights, would they bear the responsibility.
Higher Coverage Limits: Minimum coverage limits for damage to health, death, or property are set to increase from the current 35 million Czech koruna to 50 million Czech koruna in all cases. The proposed increase, attributed to inflation and rising costs of materials and labor, is seen as a prudent response to evolving economic conditions. Some experts suggest setting the limit at least 100 million Czech koruna for more comprehensive protection.
Insurance for Fast Electric Scooters: The amendments broaden the scope of vehicles that require liability insurance. This will include vehicles with a maximum design speed exceeding 25 km/h or exceeding 14 km/h if the operational weight exceeds 25 kilograms. Electric scooters and Segways are key inclusions in this category. The rationale behind this expansion is the rising number of accidents involving such vehicles in recent years. The number of uninsured electric scooter-related damages is estimated to be substantial, potentially reaching up to 228 million Czech koruna.
Greater Responsibility for Damages: In cases where a driver leaves a non-functioning vehicle in a hazardous position, the damages will be covered by their insurance. However, it remains the case that for gross violations of regulations such as driving under the influence, driving without a license, or unauthorized use of a vehicle, the driver would be required to pay for damages themselves.
End of the Green Card: The proposal seeks to eliminate the requirement for physical green cards as proof of insurance. Police officers will instead be authorized to access online records during inspections, thus streamlining administrative procedures.
These changes signify a major transformation in the liability insurance landscape in the Czech Republic, aiming to adapt to evolving transportation trends and economic realities while ensuring a more comprehensive and inclusive framework for the protection of vehicle operators and those affected by road accidents.
Article by Prague Forum