Czech Republic to Expand Mandatory Liability Insurance to More Vehicles

The Czech government has approved a new law that expands the scope of mandatory liability insurance to a broader range of vehicles. Under the new regulations, owners and operators of electric scooters, Segways, snowmobiles, and motorized golf carts will be required to obtain mandatory liability insurance. In addition, the responsibility for paying for this insurance will shift from the owner to the actual operator of the vehicle.

The new law also broadens the definition of what constitutes a vehicle, which means that the requirement for mandatory liability insurance will apply to a broader range of cars. This includes all motorized vehicles that have a maximum speed of more than 25 kilometers per hour, as well as motorized vehicles that weigh more than 25 kilograms and have a maximum speed of more than 14 kilometers per hour.

The law also establishes that motor vehicles are defined as vehicles where the motor is the primary source of propulsion. Exceptions include electric bicycles, which rely primarily on pedaling for energy and not just an auxiliary engine. Garden tractors that operate solely on private land will also be exempt from the new regulations.

Under the new law, liability insurance will be required for the vehicle’s operator rather than just the owner. This change was made in response to issues that arose with the previous law, which made it challenging to enforce violations, track lapses in insurance coverage, and calculate insurance premiums based on driving history.

In addition, the law eliminates the requirement for a “green card” to prove that mandatory liability insurance has been paid within the Czech Republic. The green card will now only serve as an international certificate of insurance coverage for drivers who travel outside the country.

The new law also raises the minimum liability coverage limits for bodily injury, death, and property damage. In all cases, the limit will increase from 25 million Czech koruna to 50 million Czech koruna.

The law is set to take effect on December 23, 2023, after which owners and operators of affected vehicles will be required to obtain the necessary liability insurance coverage. The government hopes that the new law will help ensure that all drivers and operators are adequately insured in the event of an accident and that insurance companies can manage risk and calculate premiums more effectively.