Changes in motor vehicle insurance effective from December 23, 2023, and January 1, 2024
We would like to inform you about planned changes in motor vehicle insurance, which will be effective from December 23, 2023, and January 1, 2024. Although the final form of the Compulsory Motor Insurance Act (POV) is not yet known, as it is still awaiting approval in the second reading by the Parliament of the Czech Republic, we would like to provide you with some preliminary information.
The changes will include extending the obligation to have insurance to more types of vehicles, transferring the obligation to arrange compulsory motor insurance from the vehicle owner to its current operator, and increasing the minimum coverage limits. Furthermore, when traveling within the Czech Republic, you will no longer be required to carry a green card. These are the main changes that the new liability insurance act will bring.
The obligation to have motor vehicle liability insurance will be, from this Christmas, linked to its actual operator, who is the person with legal and factual control over the vehicle and decides on its operation, including time, place, and conditions.
Furthermore, a new data point referred to as ORV (Vehicle Registration Certificate)will be introduced, which from January 1, 2024 will replace the traditional Large Technical Certificate (VTP). The VTP document will be gradually replaced by the new ORV, which will include additional relevant information.
Higher coverage limits
Another significant change is the increase in minimum coverage limits for cases of injury, death, and property damage. All these limits will increase to 50 million CZK, from the original 35 million. This increase applies to each affected person in the event 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 brand new policies but also to existing ones – if the insurance company does not do it directly, it will be increased for existing policies by December 23rd by operation of law.
New Vehicle Definition
The definition of a vehicle for which mandatory liability insurance will apply will also be expanded. This may include electric bikes, Segways, garden tractors, motorized golf carts, work machines or industrial equipment with their own propulsion, snowmobiles, or inline skates, if they exceed the specified speed or weight limits.
The law now defines the term vehicle, meaning that mandatory 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 the inclusion of 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, necessitating the arrangement of insurance.
Green Card Abolition
As of July 2024 the green card will no longer be required for travel within the Czech Republic. Authorities will electronically share available data, enabling insurance validity checks through the police system.
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