When it became Act No. 168 / 1999 Coll. effectiveness?

Act No. 168 / 1999 Coll. became effective 30.07.1999.

Is Act No. 168 / 1999 Coll. still valid?

Yes, Act No. 168 / 1999 Coll. is still valid and effective.

How many times was it Act No. 168 / 1999 Coll. amended?

Act No. 168 / 1999 Coll. has 27 time versions of the text.

Act No. 168 / 1999 Coll. - Law of 13 July 1999 on insurance of liab...

Q: What is Act No. 168 / 1999 Coll.?

Act No. 168 / 1999 Coll., on insurance of liability for damage caused by the operation of a vehicle and on the amendment of certain related laws (Act on insurance of liability from the operation of a vehicle) (Act on insurance of liability from the operation of a vehicle) — Law of 13 July 1999 on insurance of liability for damage caused by the operation of a vehicle and amending certain related laws (Act on insurance of liability for the operation of a vehicle).

168

THE LAW

of 13 July 1999

on insurance of liability for damage caused by the operation of a vehicle and amending certain related laws (Act on Insurance of Liability from the Operation of a Vehicle)

Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

INSURANCE OF RELIEF FROM VEHICLE OPERATIONS

Oddíl první

Preliminary provisions

§ 1

(1) This law implements the relevant provisions of the European Communities (1), and provides for

(a) insurance of liability for damage caused by the operation of the vehicle (liability insurance);

(b) the establishment of the Czech Insurance Office (hereinafter referred to as the Office), its legal status, organisation and subject matter.

(2) Save as otherwise provided in this law,

(a) in the case of a vehicle registered in a road vehicle register under the law governing the conditions of use of vehicles on the road, the obligation to insure liability under that law must be fulfilled as long as the vehicle is registered in the road vehicle register, except when it is entered in the road vehicle register as disabled, exported to another State or disappeared, and when the vehicle is stolen;

(b) only those whose obligation to make good the damage caused by the operation of that vehicle is insured under this law may operate on a motorway, road, local communication and special purpose communication, except for dedicated communications which are not publicly accessible (hereinafter "infrastructure"); the liability insurance obligation must be fulfilled even if the vehicle is left on the road.

(3) Save as otherwise provided in this law, liability insurance is governed by the Civil Code.

§ 2

Definition of terms

For the purposes of this Act:

(a) road vehicle, special vehicle, trolleybus5); a wheelchair, a cover vehicle and a non-motor vehicle drawn or pushed by a pedestrian person, a bicycle and a scooter shall not be regarded as a vehicle unless it is approved as a type of motorcycle vehicle,

(b) a domestic vehicle is subject to registration of road vehicles under the law on the conditions of operation of vehicles on the road (9) (hereinafter referred to as the "registration of vehicles"), or a vehicle which is not subject to registration of vehicles and is owned by a natural person residing or operating in the territory of the Czech Republic or by a legal person established in the territory of the Czech Republic, or a vehicle which has been dispatched to the Czech Republic from another Member State (point (l))], if the Czech Republic is the State of destination, for a period of 30 days from the date on which the purchaser has taken over the vehicle, even if the vehicle has not been registered in the Czech Republic,

(c) a foreign vehicle is a vehicle which is equipped with a foreign registration plate or a vehicle which is not equipped with a foreign registration plate and is owned by a natural person residing or being in business outside the territory of the Czech Republic or by a legal person having its registered office outside the Czech Republic;

(d) insurer

an insurance company which is entitled to operate liability insurance within the Czech Republic under special legislation10),

(e) policyholder

the person who has concluded a liability insurance contract with the insurer,

(f) insured persons whose obligation to make good is covered by liability insurance;

(g) the injured party who has suffered injury and is entitled to compensation for the damage caused by the operation of the vehicle;

(h) damage caused by the operation of the vehicle;

(i) insurers' offices

professional organisations bringing together insurance undertakings authorised in a Member State to carry out liability insurance,

(j) the registration place of the administrative authority responsible for the registration of vehicles under the Road Traffic Conditions Act;

(k) a green card of an international certificate proving that a contract has been concluded with the vehicle for liability insurance due to the operation of the vehicle referred to in that certificate;

(l) Member State:

a Member State of the European Union or another State constituting the European Economic Area,

(m) the territory in which the vehicle is normally based,

1. the territory of the State whose registration mark or other registration mark the vehicle is affixed, whether or not that mark is permanent or temporary; or

2. the territory of the State where the mark assigned to the vehicle by the insurer or any other distinguishing mark has been issued if the vehicle is not subject to registration but the mark assigned by the insurer or other distinguishing mark is affixed to the vehicle, or

3. the territory of the State in which the owner or the co-owner of the vehicle is resident, where neither the registration mark nor the mark assigned by the insurer or any other distinguishing mark similar to the registration plate is required for such vehicle; or

4. the territory of the State in which the harmful event occurred where the vehicle is without a registration plate, even if it should have been affixed, or of a vehicle with a registration plate or another registration plate which does not correspond to or has ceased to comply with the vehicle, in the case of the provision of services pursuant to Article 24 (2) (b).

Oddíl druhý

Insurance of liability

§ 3

Insurance contract

(1) Liability insurance is established under an insurance contract concluded between the policyholder and the insurer. The insurer shall always be obliged to conclude an insurance contract if the application for its conclusion does not contradict this law, the law governing the insurance contract or the insurance conditions of the insurer. In an insurance contract, the Contracting Parties may derogate from this Act only if this does not reduce or limit the claims of the injured party resulting from the right to compensation for damage caused by liability insurance caused by the operation of the vehicle. The liability insurance cannot be interrupted (11) unless otherwise agreed in the insurance contract. If the insurance contract has agreed to discontinue the liability insurance, the policyholder shall, before the start of the insurance interruption, demonstrate to the insurer that the vehicle has been disabled under the Road Traffic Conditions Act in the case of a vehicle subject to registration of vehicles. The liability insurance is not fulfilled at the time of the interruption.

(2) The owner of a domestic vehicle or the driver of a foreign vehicle shall be obliged to conclude a liability insurance policy unless otherwise provided for in this Act. This is without prejudice to the right to conclude a contract such as insurance against foreign insurance risks. One liability insurance contract may insure the operation of several vehicles if they have the same owner or operator, or if the policyholder has an insurance interest based on the provision of a loan or other similar financial service, the purpose of which is to acquire ownership of the vehicle, or if the owner or the vehicle operator and the policyholder are part of the same group.

(3) Immediately after the conclusion of the insurance contract relating to the domestic vehicle, the insurer shall issue a green card to the policyholder.

(4) The insurance contract always includes:

(a) identification of the insurer and policy holder and vehicle data;

(b) the duration of the insurance;

(c) the insurance performance limit;

(d) the amount of the premium, its maturity and its method of payment; and

(e) the form and place of notification of the harmful event; where liability insurance is carried out in the form of temporary provision of services, also the address of the place of residence or place of business, or the registered office of the person responsible for the damage referred to in Article 9b.

(5) If, at the time of the conclusion of the insurance contract or the modification thereof, certain vehicle information is not known but which does not make it impossible to identify it, the policyholder shall inform the insurer within a period to be determined by the insurer, but not later than 15 days from the date of conclusion of the insurance contract or its amendment. The policy holder shall notify the policy holder of the change within 15 days of the date of the change.

§ 3a

Limits on claims

(1) For the purposes of this Act, the limit on insurance benefits is the maximum limit on the performance of the insurer in a single event. The insurance performance limits shall be stated separately in the insurance contract in a manner which corresponds to the breakdown of the insurance performance limits referred to in paragraph 2.

(2) The insurance performance limit must correspond to:

(a) in the event of injury pursuant to § 6 (2) (a), at least CZK 35,000 for each injured or killed person, including reimbursement of the costs of care paid for public health insurance and regression claim under § 6 (4),

(b) in the event of injury pursuant to § 6 (2) (b) and (c) at least CZK 35,000, regardless of the number of victims; If the sum of the claims applied is greater than the more damaged insurance performance limit specified in the insurance contract, each of them shall be reduced in proportion to the sum of the claims of all the injured.

(3) Within the limit referred to in paragraph 2 (b), the costs of intervention by the Fire Rescue Corps of the Czech Republic ("the Fire Rescue Corps') and the units of the voluntary fire department of the municipality shall be reimbursed in accordance with Paragraph 6 (4) in the event of an intervention in connection with the damage referred to in Article 6 (2).

§ 3b

Determination of premiums

(1) The insurer is obliged to determine the level of insurance premiums in accordance with the conditions laid down by the law governing the insurance sector in order to ensure that the obligations arising from the operation of liability insurance and the reimbursement of contributions to the Office under Paragraph 18 (5) are fulfilled.

(2) When negotiating the amount of premiums in an insurance contract, the insurer shall take into account the total previous malpractice of insurance against the liability of the policyholder by a discount on insurance premiums in the event of the non-malicious course of insurance or a premium on insurance premiums in the case of the payment of insurance benefits from liability insurance. The insurance contract may provide that the malpractice of the person operating the vehicle is taken into account if it is a different person from the policy holder. Taking into account the previous malpractice, the insurer shall not take into account the period of interruption of the liability insurance. In that case, taking into account the previous harmful course, the period of interruption of the liability insurance shall not be counted against the insurance period of that insurance. The method of determining the level of the premium shall be submitted by the insurer to check the Czech National Bank on its written request, including the statistics on which the method of determining the level of the premium is based.

§ 4

Contribution

(1) The owner of a domestic vehicle and its operator (hereinafter referred to as the person liable for payment of the allowance) are jointly and severally obliged to pay the allowance to the Office for each day of the infringement pursuant to Paragraph 1 (2); this does not apply if the vehicle has been stolen.

(2) When determining the person liable for payment of the allowance, it shall be considered that:

(a) the person registered as the owner of the vehicle in the register of road vehicles is the owner of the vehicle; and

(b) the person registered as the vehicle operator in the road vehicle register is the vehicle operator.

(3) The amount of the allowance shall be calculated as the product of the number of days in which the obligation under Paragraph 1 (2) has been infringed and the amount of the daily rate by type of vehicle.

(4) The person liable for payment of the allowance shall pay the Office the costs associated with the extra-judicial application of the right of contribution.

(5) The amount of the daily contribution rate, the types of vehicle for the purposes of the daily contribution rate and the amount of the costs of the Office associated with the out-of-court exercise of the right to contribution under paragraph 4 shall be determined by the Ministry of Finance by decree.

(6) The obligation to pay the allowance and the costs of the Office referred to in paragraph 4 shall cease if, within 1 year of the date of the obligation to pay the allowance, the Office does not send a call for payment to the person liable for payment of the allowance in accordance with paragraph 7, if the person registered as the owner or the vehicle operator in the register of road vehicles. In other cases, the period of 1 year shall not start before the Office has been shown to know who is the owner or the vehicle operator.

(7) The invitation to pay the allowance shall include a description of the reasons for the entitlement to the allowance, a quantification of the amount of the allowance and the costs of the Office, a period of time to meet the obligation to pay the allowance of at least 30 days from the date of receipt of the invitation, an indication of the addressee's rights and obligations, including the possibility to provide evidence to the Office of the circumstances excluding the entitlement to the allowance and the possibility of the Office to claim the contribution and the costs of the Office in the court.

§ 5

Exemptions from liability insurance

(1) The obligation to conclude an insurance contract under this Act does not have

(a) a driver of a foreign vehicle holding a valid green card issued by an insurance company in a foreign State or a vehicle whose liability insurance in the Czech Republic is guaranteed by the office of insurers of a foreign State;

(b) the component of the integrated rescue system for all vehicles not used for business purposes and included in a continuously updated annex to the Integrated Regional Rescue System alarm plan, 12)

(c) Security Information Service for vehicles operated by it, General Inspection of Security Councils for vehicles operated by it, Ministry of Defence for vehicles operated by Military Intelligence and Ministry of Interior for vehicles operated by the Office of Foreign Relations and Information and for vehicles of the Police Services of the Czech Republic entrusted with the investigation under the Special Legislative Act 12a), Municipality for vehicles operated by units of voluntary firefighters of the municipality and Ministry of Finance ("Ministry") for vehicles operated by the mandated customs authorities, which have the status of a police authority under the Special Legislative Act 12a).

(2) The Ministry shall issue a green card to the vehicle referred to in paragraph 1 (b) and (c) (hereinafter referred to as "the vehicle with the exception of liability insurance"). If the reason for which a green card has been issued to a vehicle with the exception of liability insurance, the person who operates such a vehicle is obliged to return the green card to the Ministry.

Scope of liability insurance

§ 6

(1) The liability insurance applies to any person who is obliged to make good the damage caused by the operation of the vehicle specified in the insurance contract.

(2) Save as otherwise provided for in this law, the insured person shall have the right to pay the insurer for him to the extent and in accordance with the Civil Code against the injured party.

(a) caused by injury caused by injury or death;

(b) effectively incurred costs associated with the care of the injured animal and the damage caused by damage, destruction or loss of the case, as well as damage resulting from the theft of the case, if the natural person has lost the ability to maintain it,

(c) income forgone;

(d) effectively incurred costs associated with legal representation in the application of the entitlements referred to in points (a) to (c); However, in relation to the damage referred to in (b) or (c), only where the period referred to in Article 9 (3) has expired in vain, or where the insurer has refused, or has refused, or has refused, without right to reduce, the claims,

where the injured party has exercised and demonstrated his claim and where the event from which the injured party has incurred that injury and which the insured person is obliged to replace has occurred during the period of liability insurance, except for the period of interruption.

(3) Unless otherwise agreed, the insurer shall provide the performance, to the extent and at the level referred to in paragraph 2, in cash up to the limit of the insurance performance laid down in the insurance contract.

(4) In addition, the insured has the right to have the insurer pay for it by the competent health insurance undertaking applied and established a claim for reimbursement of the costs of health care borne by the public health insurance scheme under the Act governing public health insurance (15a), if the health insurance undertaking has incurred these costs of health care provided to the injured person, provided that the harmful event from which such damage has been incurred and which the insured is obliged to compensate has occurred during the life of the liability insurance, except for the period of interruption. This applies mutatis mutandis to the regression compensation prescribed for the reimbursement of the insured under the sickness insurance law 15b) and to the costs of the fire brigade or units of the municipal voluntary firefighters pursuant to § 3a (3).

(5) The insurance contract relating to liability insurance must be concluded in such a way that such insurance applies on the basis of a single insurance policy within the territory of all Member States and other States included in the list of States laid down by the Ministry of Finance. The insurer is obliged to mark this validity on the green card.

(6) The liability insurance shall also apply in the territory of States other than those referred to in paragraph 5, provided that the insurer has indicated that the insurance is valid on the green card.

(7) In the event of damage caused by the operation of a domestic vehicle in the territory of another Member State, the scope of liability insurance shall be governed by the legislation of that other Member State, provided that, under this law or under an insurance contract, that scope is not wider.

(8) The damage caused by the operation of a vehicle to a citizen of a Member State during its direct journey between the two territories of the Member States, where the territory in which such a person passes and where the event from which the damage occurred is not covered by any national insurers' office, shall be governed by the legislation of the Member State in whose territory the vehicle is normally based.

§ 7

(1) The insurer does not pay

(a) the damage suffered by the driver of the vehicle the operation of which caused the damage;

(b) the damage referred to in Article 6 (2) (b) and (c) which the insured person is obliged to pay to his spouse or persons who lived with him in the common household at the time of the occurrence of the event, with the exception of the damage referred to in Article 6 (2) (c), where the damage is related to the damage referred to in Article 6 (2) (a);

(c) damage to the vehicle the operation of which caused the damage, as well as to the goods carried by that vehicle, with the exception of damage caused by the item carried by that vehicle by the person carrying it at the time of the damage, to the extent that the insured person is obliged to make good the damage;

(d) damage pursuant to Article 6 (2) (b) and (c) arising between vehicles of a combination made up of a motor vehicle and a trailer, as well as damage to goods carried by such vehicles, in the absence of damage caused by the operation of another vehicle;

(e) the damage caused by the handling of the stationary vehicle;

(f) costs incurred by the provision of medical care, sickness insurance benefits (care) or pension pensions due to damage to health or death suffered by the driver of the vehicle whose operation caused the injury;

(g) the damage caused by the operation of the vehicle in its participation in an organised motorist race or competition, with the exception of that caused by such participation, if the driver is obliged to comply with the road traffic rules in that race or competition;

(h) the damage caused by the operation of the vehicle in a terrorist act or war event, if such operation is directly related to that act or event.

(2) If the damage caused to the owner of the vehicle was caused by the operation of his vehicle, which was driven by another person at the time of the injury, or by a person whose operation caused the injury to that person, he or she is legally entitled to his or her own right, and if, at the time of the injury, another person was driving the vehicle, the insurer is obliged to pay that owner or that person only the damage referred to in Article 6 (2) (a), including the reimbursement of the costs incurred in respect of the care borne by public health insurance and the regression claim pursuant to Article 6 (4).

(3) In the event of a collision of vehicles owned by the same person, the damage caused to that person shall be reimbursed only if it is the different operators of the vehicles involved in the occurrence of the event and if that person is not at the same time the operator of the vehicle on which the damage was caused.

(4) The performance of the damage caused by the operation of the vehicle, to the extent that the insured is obliged to compensate for the damage and duly demonstrated by the injured party, may not be refused or reduced except in the cases referred to in this Act.

§ 8

Obligations of the insured

(1) The insurer shall, without undue delay, notify the insurer in writing that there has been a malicious event, indicating the facts relating to the event, submit the relevant documents and follow the instructions of the insurer during the investigation.

(2) The insured person shall inform the insurer in writing without undue delay that:

(a) the right to compensation has been claimed against it and the amount of compensation requested has been expressed,

(b) administrative or criminal proceedings have been initiated in the context of a malicious event and inform the insurer immediately of its progress and outcome;

(c) the injured party has been entitled to compensation in a court or other competent authority if he becomes aware of this.

(3) The insured person shall, without undue delay, document to the injured party, upon his request, the information necessary to exercise the right of the injured party to the performance referred to in Article 9 (1), but at least:

(a) his name and, where applicable, his name and address, his name or business name and registered office;

(b) the name and, where applicable, the name and address, the name or business name and registered office and, where appropriate, the place of business of the owner of the vehicle;

(c) the business firm and the head office of the insurer, possibly the address of the branch of the insurer in the Czech Republic,

(d) the number of the insurance contract; and

(e) in the case of a vehicle subject to registration of vehicles, the registration number of the vehicle to which the damage was caused.

(4) The insured is obliged to submit a common record of the traffic accident to the insurer without undue delay in the event of an accident not subject to notification by the Police of the Czech Republic under the law governing traffic on the road (15c).

(5) If the insurer requests notification of the insurer to the police of the Czech Republic from the insured person in the event of an accident in accordance with paragraph 4, the insured person shall pay the related costs.

§ 9

Insurance claims

(1) The injured party shall have the right to claim the performance referred to in Article 6 from the competent insurer or from the Office in the case of a claim for the performance of the guarantee fund pursuant to Article 24. When the claim is claimed, it is obliged to submit a common record of a road accident (15d) when the accident is not subject to notification to the police of the Czech Republic under the law governing road traffic (15c).

(2) The performance of the insurer shall be due within 15 days, as soon as the insurer has completed the investigation necessary to establish the extent of the insurer's obligation to comply or when the insurer has received a final decision by the court on his obligation to provide insurance.

(3) The insurer is obliged to conduct an investigation into a harmful event without undue delay. Within a period of 3 months from the date on which the entitled person has exercised the right to benefit from liability insurance, the insurer shall:

(a) terminate an insurance claim investigation and communicate to the injured party the amount of the insurance claim against each injured person, including the method of determining the amount of the claim, where the insurer's obligation to pay the liability insurance and the claims of the injured party have been demonstrated; or

(b) provide the injured person with written explanations of the claims he has claimed which have been rejected by the insurer or for which the performance of the insurer has been reduced or for which the investigation could not be terminated within the prescribed period.

(4) If the insurer has failed to comply with the obligation referred to in paragraph 3, the amount of insurance benefits covered by the insurer's default shall be increased by interest on late payments. The interest rate on late payment is set at the discount rate fixed by the Czech National Bank, applicable on the first day of delay, plus 4% per year. Interest on late payments shall be determined separately for each month started at the rate of one twelfth of the rate of interest on late payments, the rate of interest on late payments being updated each month using the discount rate of the Czech National Bank applicable on the first day of that month. Interest on late payments derived on the basis of the discount rate shall be applied unless an amount higher is specified in the insurance contract.

(5) In the absence of a threat to criminal proceedings under special legislation (16) or infringement proceedings, the law enforcement authority or infringement authority shall inform the insurer or the Office of the details of the accident to the extent specified in the specific legislation, (16a) or allow it to view the file and make statements on the case concerning the harmful event.

(6) The investigation referred to in paragraph 3 may not be made conditional on termination of the proceeding referred to in paragraph 5, which is not the subject of a decision on compensation. This shall be without prejudice to the provisions of paragraph 2.

§ 9a

Damage representative of the insurer in another Member State

(1) An insurer established in the territory of the Czech Republic shall appoint in each other Member State a liability representative. This also applies to insurers established in a territory other than a Member State (hereinafter referred to as the "third State '), with the exception of those Member States in which they have been authorised to carry out liability insurance. Such a liability representative shall have its registered office in the Member State in which it is established, if it is for a natural person, residence or place of business and if it is for a legal person.

(2) The representative referred to in paragraph 1 shall, in the name and on behalf of the insurer, deal with harmful events, including the final execution of claims made to the injured. To this end, it collects the information necessary to investigate the claims of the injured party and implements measures to settle them if the damage was caused by the operation of the vehicle,

(a) to which the insurer has negotiated liability insurance in a Member State other than that in which the insurer has his residence, place of business or registered office;

(b) which is normally based in a Member State other than that in which it has its residence, place of business or registered office, and

(c) if such damage has occurred in a Member State other than that in which the injured party is domiciled, his place of business or his registered office; or

(d) if this has been done in a third State whose insurers' office has joined the green card system.

(3) The representative referred to in paragraph 1 may also be active for several insurers. It shall be entitled to represent the insurer in relation to the injured party, to settle the claims of the injured party in full and to act in the official language of the Member State of residence of the injured party. The appointment of a claims representative referred to in paragraph 1 shall not exclude the right of the injured party to exercise the right to compensation directly against the person causing the damage or against the competent insurer.

(4) The appointment of a claims representative referred to in paragraph 1 shall not constitute the establishment of a branch of the insurer and the activity of the liability agent shall not be considered as a form of establishment in the territory of another Member State (hereinafter referred to as "establishment ').

(5) The insurer shall inform the Office of the name and, where applicable, the name and address of the place of residence, place of business or business of the person responsible for the damage referred to in paragraph 1, in the case of a natural person, or of a business name or registered office, in the case of a legal person, the State of its jurisdiction and any change within 7 days of the date of his appointment or amendment. The Office shall transmit this information without undue delay to the relevant national information centres of the Member States.

§ 9b

Damage representative of an insurer from another Member State for the Czech Republic

(1) An insurer established in the territory of another Member State who operates liability insurance in the territory of the Czech Republic on the basis of the freedom to provide temporary services is obliged to appoint a liability representative in the Czech Republic.

(2) The representative referred to in paragraph 1 shall, on behalf of and on behalf of the insurer, deal with harmful events, including the final execution of damaged claims. To this end, it collects the information necessary to investigate the claims of the injured party and implements measures to settle them if the damage was caused by the operation of the vehicle,

(a) to which the insurer has negotiated liability insurance, if the damaged residence, place of business or registered office in the Czech Republic; and

(b) where such damage has occurred in the territory of a Member State or another State pursuant to Article 6 (5) or (6).

(3) The representative referred to in paragraph 1 may also be active for several insurers. He must be entitled to represent the insurer in relation to the injured party, to settle the entitled claims of the injured person in full and to act in the Czech language. The appointment of a claims representative referred to in paragraph 1 shall not exclude the right of the injured party to exercise the right to compensation directly against the person causing the damage or against the competent insurer.

(4) The appointment of a claims representative referred to in paragraph 1 shall not constitute the establishment of a branch of the insurer and the activities of the claims representative shall not be considered an establishment.

(5) The insurer shall inform the Office of the name and, where applicable, the name and address of the place of residence, place of business or business of the person responsible for the damage referred to in paragraph 1, in the case of a natural person, or of a business name or registered office, in the case of a legal person within 7 days of the date of his appointment. The insurer shall notify the Office within 7 days of the date of the change.

(6) The malicious agent referred to in paragraph 1 shall represent the insurer referred to in paragraph 1 in relation to the Office in respect of the matters provided for in paragraphs 15 and 24 (7) and (9), even if the procedural authorisation referred to in paragraph 18 (10) is for another person.

§ 9c

Harmful representative of insurance company for the Czech Republic

(1) The professional representative established in accordance with the law of the European Communities (1) in the Czech Republic by an insurance undertaking which has been granted an authorisation in a Member State other than the Czech Republic to carry out liability insurance and which does not operate liability insurance in the Czech Republic shall, on behalf of and on behalf of that insurance undertaking, discuss the harmful events, including compensation for damage caused by the damaged operation of the vehicle,

(a) to which the insurance undertaking has negotiated liability insurance, if the damaged residence, place of business or registered office in the Czech Republic;

(b) which is normally based in a Member State other than the Czech Republic; and

(c) if such damage has occurred in a Member State other than the Czech Republic; or

(d) if this has been done in a third State whose insurers' office has joined the green card system.

(2) The representative referred to in paragraph 1 shall collect the information necessary to examine the claims of the injured party and implement measures to settle them if the damage was caused by the operation of the vehicle, provided that the insurance undertaking has negotiated the liability insurance for the operation of that vehicle effective at the time of the occurrence of the harmful event. He must be entitled to represent the insurer in relation to the injured party, to settle the entitled claims of the injured person in full and to act in the Czech language. The appointment of a claims representative pursuant to paragraph 1 shall not exclude the right of the injured party to exercise the right to compensation directly against the person who caused the damage or against the insurance undertaking concerned.

(3) The representative referred to in paragraph 1 shall exercise, in respect of the injured party, the rights and obligations of the insurer under this law, including representation of the insurance undertaking before the courts in deciding on such rights or obligations.

(4) The representative referred to in paragraph 1 may also be active for several insurance undertakings. Its appointment is not the establishment of a branch of an insurance company and the activities of a claims representative are not considered an establishment.

§ 9d

Where an insurance undertaking operates liability insurance in the territory of the Czech Republic on the basis of the right to establish branches as an insurer established in another Member State, the obligations of the claims representative pursuant to § 9c (1) to (3) shall be deemed to be fulfilled by the manager of that branch in the territory of the Czech Republic, unless the insurance undertaking has provided another person as a liability representative for the insurance of its contracted liability from the operation of the vehicle which is normally based in a Member State other than the Czech Republic. Where an insurance undertaking operates liability insurance within the territory of the Czech Republic on the basis of the freedom to provide services temporarily as an insurer pursuant to § 9b (1), the obligations of the claims representative pursuant to § 9c (1) to (3) shall be deemed to be fulfilled by the claims representative pursuant to § 9b, unless the insurance undertaking has provided another person as a liability representative for the insurance of its contracted liability from the operation of the vehicle which is normally based in a Member State other than the Czech Republic.

§ 10

Right of the insurer to pay the sum paid

(1) The insurer shall have the right against the insurer to compensate for what he has done for him if he proves that the insurer:

(a) cause harm intentionally;

(b) without prejudice to good reason, it has failed to fulfil the obligation under the Road Traffic Act to draw up a common record of a traffic accident or to report an accident which is a harmful event and, as a result, the possibility of proper investigation by the insurer pursuant to Article 9 (3) of that Act or of the insurer to exercise this right to make good the claims,

(c) without account being taken of any reasonable reason, he left the scene of the accident or otherwise prevented the identification of the actual cause of the accident;

(d) cause damage to the operation of a vehicle which has been unlawfully used;

(e) it has not complied with the obligation under Article 8 (1) to (3) without taking account of reasonable grounds and, as a result, the possibility of proper investigation by the insurer under Article 9 (3) has been made difficult or impossible;

(f) without prejudice to any reasonable reason as a driver of a vehicle, he refused to submit to a test of alcohol, narcotic or psychotropic substances or a prohibited vehicle;

(g) driving a vehicle and not holding a relevant driving licence, except for driving a vehicle by a person who learns to drive or pass a driving test, and only under the supervision of an authorised teacher or driver of an individual training instructor;

(h) driving a vehicle at the time when the vehicle is prohibited from operating;

(i) drive a vehicle under the influence of an alcohol, narcotic or psychotropic substance or a medicine which is prohibited to drive a motor vehicle; or

(j) forward the steering control to the person referred to in (g), (h), (i).

(2) The insurer shall have the right against the insured to compensate for what he has done if he proves that the insurer has infringed the essential obligations relating to road traffic by operating the vehicle,

(a) which, by its design or technical condition, does not comply with the requirements of road safety, operating persons, persons and goods; or

(b) whose technical capability to operate the vehicle has not been approved;

and this breach was due to the occurrence of injury which the insured is obliged to replace.

(3) The vehicle operator shall be jointly and severally liable to the person referred to in paragraph 1 for the insurer's claim for reimbursement of the amount paid under paragraph 1 (g), (h), (i) and (j), unless it can be demonstrated that he was unable to influence that person's actions.

(4) The insurer shall have the right against the policyholder to pay the amount which he has paid because of the damage caused by the operation of the vehicle if the insurer's cause was a fact which, for knowingly false or incomplete answers, the insurer could not have ascertained when negotiating the insurance and which was relevant to the conclusion of the insurance contract.

(5) If the insured has infringed one of the obligations referred to in paragraphs 1 to 3 of Article 8, the insurer shall be entitled to claim reimbursement of the costs associated with the insurance claim investigation or other costs resulting from the breach of those obligations. This shall be without prejudice to the right of the insurer to pay the amount paid in accordance with paragraph 1 (e).

(6) The sum of the required compensation referred to in paragraphs 1 to 5 shall not exceed the performance paid by the insurer as a result of the event to which the insurer's right relates.

§ 11

Injury caused by the operation of a vehicle except from liability insurance

(1) The loss caused by the operation of the vehicle, with the exception of liability insurance, will be compensated by the Ministry.

(2) The manner and extent of compensation in the cases referred to in paragraph 1 shall be governed by the Civil Code. A person operating a vehicle with the exception of liability insurance shall notify the Ministry of the facts in accordance with § 8 (1) and (2). The injured party shall be entitled to compensation against the Ministry in such a case. The activities related to compensation for damage paid by the Ministry may be carried out by the insurer authorised by the Ministry on behalf of the Ministry under the agreement.

(3) Where damage is caused by the operation of a vehicle, except from liability insurance in the territory of a State listed in accordance with Paragraph 6 (4), the Office or the insurer referred to in paragraph 2 shall pay the damage. The Ministry shall pay to the person who has paid the damage in accordance with the first sentence the amount of insurance premiums paid, including the costs associated with the handling of the insurance claim.

(4) Where the Ministry has replaced the damage caused by the operation of a vehicle which it is obliged to replace by a person operating a vehicle with the exception of liability insurance, the Ministry shall have the right to compensate for what it has performed for that person against the natural person causing the damage under the conditions laid down in Paragraph 10 (1). If the damage was caused in the performance of his duties, the Ministry may exercise the right to compensation for the performance paid to the extent that the employer could apply it to the employee under a special legislation. 18) This restriction does not apply if the damage caused intentionally, by unauthorised use of the vehicle, after ingestion of an alcoholic drink or under the influence of a narcotic substance.

Citation	Act No. 168 / 1999 Coll., on insurance of liability for damage caused by the operation of a vehicle and on the amendment of certain related laws (Act on insurance of liability from the operation of a vehicle) (Act on insurance of liability from the operation of a vehicle)
Regulation Type	Law
Author	-
Collection	Code of Laws

Date of Promulgation	30.07.1999
Effective from	30.07.1999
Effective until	-
Status	Valid

Act No. 168 / 1999 Coll.

Law of 13 July 1999 on insurance of liability for damage caused by the operation of a vehicle and amending certain related laws (Act on insurance of liability for the operation of a vehicle)

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