The new form of European rules for compulsory motor insurance
The European Union has established new rules for motor vehicle liability insurance for all its member states and European Economic Area countries. In the Czech Republic, the new law is expected to come into effect on March 1, 2024.
Higher Limits for Insurance Payouts
A significant change is the increase in minimum insurance payout limits for cases of injury, death, and property damage. All these limits will increase to 50 million Czech crowns, up from the original 35 million. This increase applies to each affected person in cases of injury or death and is also valid for any property damage within a single insured event, regardless of the number of injured parties. The higher limit applies not only to entirely new contracts but also to existing ones.
Vehicle Definition
The definition of a vehicle for which compulsory motor insurance will apply will be expanded. This will include small vehicles such as urban electric scooters, unicycles, electric skateboards, Segways, garden tractors, motorized golf carts, work machines, or industrial equipment with their own propulsion, provided they exceed specified speed or weight limits.
The law newly defines the term vehicle, meaning that:
- compulsory motor insurance will apply to all motor vehicles with a design speed exceeding 25 kilometers per hour
- as well as motor vehicles with a design speed exceeding 14 kilometers per hour that weigh more than 25 kilograms.
Identification of these vehicles will require providing the manufacturing or registration number in the insurance policy + submission of technical documentation proving that the vehicle exceeds one of the two mandatory parameters of the new vehicle definition requiring insurance.
Compulsory motor insurance is not mandatory for electric bicycles, motor-assisted bicycles, and mopeds where the motor only assists pedaling. Also, a wheelchair used exclusively by a person with a physical disability, or a mini-tractor that will operate on fenced private property.
Green Card
The paper Green Card in the Czech Republic will likely be abolished by September 1, 2024, as police will be able to verify mandatory insurance online. However, when traveling abroad, it will still be necessary to have a paper version of the Green Card.
New Definitions
The term Operation includes any use of a vehicle as a means of transport. In case of doubt about its use, it is automatically presumed to be a means of transport. This definition does not apply if the vehicle is used for activities as a work machine (e.g., a mobile crane at work) or as an energy source.
The vehicle operator plays a key role in the new system. The responsibility for ensuring mandatory insurance is now with the vehicle operator. Failure to comply with this obligation may result in a fine for the operator of up to CZK 50,000. Additionally, a penalty is also prescribed in the form of a contribution for each day of missing insurance, which is paid to the Czech Insurers' Bureau.
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