The Chamber of Deputies has approved the law on third party liability insurance, which now goes to the Senate. The new legislation responds to the relevant European Directive and introduces key changes to the legal framework relating to third party liability insurance.
Extension of the range of vehicles subject to insurance
The new legislation extends the range of vehicles subject to liability insurance. Vehicles with a maximum design speed of more than 25 km/h, or more than 14 km/h if their operating mass is more than 25 kg, and trailers are now covered.
This means that the insurance obligation will apply to, for example, electric scooters or Segways. On the other hand, electric bicycles will not be covered because their primary source of energy is human power and not an electric motor.
Exceptions to the insurance obligation
The law also provides for a number of exemptions from the liability insurance obligation. The exemptions will apply not only to the operation of unregistered vehicles in enclosed buildings and premises, but also to premises that, although not physically enclosed, are not open to the public by virtue of other laws. Thus, an exception will be made, for example, for garden tractors that operate exclusively on private property that is not open to the public. However, if they go off it onto the road, they must be insured.
An exception to the liability insurance requirement also applies to organised motor racing held on closed tracks (insurance will have to be provided by the organiser under specific legislation).
Obligation to take out liability insurance
The obligation to take out liability insurance is newly transferred from the owner of the vehicle to its actual operator. The obligation to insure the vehicle will always apply to the operator and not to the driver who, for example, temporarily borrows the vehicle. This also affects the short-term use of shared scooters.
Abolition of green cards
The law will abolish the so-called green cards for proving third party liability insurance when operating a vehicle. They will be replaced by online registration. This will make checks possible in the Czech Republic without stopping the vehicle.
Increase in minimum limits of insurance benefits
The law also increases the minimum limits of insurance benefits from the current 35 million. CZK to CZK 50 million. CZK.
Effectiveness of the Act
The effectiveness of the Act is set for the second month following its publication in the Collection of Laws. The transition to the online data exchange system and the related abolition of the Green Card for national purposes will be implemented after a six-month transition period.