The Czech Chamber of Deputies has moved forward with a proposal for mandatory liability insurance that is expected to cover a broader range of vehicles, including electric scooters, segways, snowmobiles, and motorized golf carts. Notably, the obligation to pay for this insurance will shift from the vehicle owner to the actual operator. This development is part of a proposal for a new law that gained support in the initial round of voting on Tuesday.

The proposed regulation aligns with a European directive and is anticipated to take effect from Christmas, pending further legislative processes. It will undergo additional readings in the Chamber of Deputies, final voting, Senate approval, and ultimately require the President’s signature to become law, with the effective date set for December 23.

The law redefines the concept of a vehicle, expanding the scope of vehicles subject to mandatory liability insurance. This requirement will apply to all motor vehicles with a design speed exceeding 25 kilometers per hour and motor vehicles with a design speed exceeding 14 kilometers per hour and weighing more than 25 kilograms. The law also stipulates that motor vehicles are those where the engine serves as the primary source of propulsion.

In cases where a police officer discovers during a check that a vehicle subject to mandatory insurance lacks the required coverage, the officer will have the authority to order the driver to park such a vehicle.

Exceptions to this requirement will be made for electric bicycles, as their primary energy source is pedaling, and they will be exempt from mandatory insurance. Garden tractors operating exclusively on private property will also be exempt; however, when they venture onto the road, they must be insured.

Under the new law, it is the operator of the vehicle who is responsible for paying mandatory liability insurance, a departure from the current legal regulation that focuses on the vehicle owner. This change is motivated by negative experiences with the existing system in addressing offenses, insurance termination, and the use of bonus and malus systems for determining insurance premiums, as explained in the draft law’s explanatory report.

Additionally, the law eliminates the green card, which serves as proof of paid compulsory liability insurance within the Czech Republic, owing to the digitalization of insurance control systems. The green card will now only serve as international proof of liability insurance payment for drivers traveling abroad.

Furthermore, the new law is expected to raise the minimum insurance coverage limits in cases of personal injury, death, or property damage, doubling them from 25 million Czech crowns to 50 million Czech crowns. This increase applies to each affected person in personal injury or death cases and to each separate event in property damage cases, regardless of the number of parties involved.

Deputies approved the law after extended deliberations, allowing discussions to continue into the evening. The proposal generated significant debate, with various topics discussed during the session, including issues related to the encrypted phone of Minister of the Interior Vít Rakušan. Subsequently, additional norms related to legislative processes and telemedicine were also passed, setting the stage for potential changes in how legal processes and healthcare practices are conducted in the Czech Republic.

Article by Prague Forum