Act No. 30 / 2024 Coll.

Act on Insurance of Vehicle Liability

Valid Law Effective from 01.04.2024
30
THE LAW
of 24 January 2024
on vehicle liability insurance
Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

INTRODUCTORY PROVISIONS
§ 1
Subject matter
This law implements the relevant provisions of the European Union1) and provides for
(a) insurance of liability for damage caused by the operation of the vehicle (liability insurance);
(b) insurance covering the risk of an obligation to compensate for damage caused by the operation of vehicles when participating in an organised motor race or an organised motor sport competition (hereinafter referred to as motor sport insurance);
(c) the legal status, organisation and subject matter of the activities of the Czech Insurance Office (hereinafter referred to as the Office),
(d) the purpose of the creation, financing and implementation of funds managed by the Office; and
(e) certain rules on the exercise of supervision in the field of the performance of liability insurance.
§ 2
Vehicle and its operation
(1) For the purposes of this Act, a vehicle means:
(a) a motor vehicle intended to move on the ground, with the exception of a rolling stock powered solely by mechanical propulsion;
1. whose maximum design speed is greater than 25 km.h-1; or
2. whose operating mass exceeds 25 kg and the maximum design speed exceeding 14 km.h-1;
(b) a trailer intended for use with the vehicle referred to in (a).
(2) A vehicle of a category moped according to a directly applicable European Union2 Regulation (2) complying with the condition referred to in paragraph 1 (a), except for a moped equipped with auxiliary propulsion, the main purpose of which is to assist with pedal.
(3) For the purposes of this Act, a wheelchair used exclusively by a person with a physical disability shall not be regarded as a vehicle.
(4) The operation of the vehicle shall mean, for the purposes of liability insurance, any use of the vehicle corresponding to its normal function as a means of transport, irrespective of the vehicle's characteristics and regardless of the terrain in which the vehicle is used and whether the vehicle is standing or moving. If it is not obvious what function the vehicle was used at the time of the occurrence of the harmful event, it shall be deemed to have been used as a means of transport.
§ 3
Normal vehicle position
(1) For the purposes of this Act, the territory in which the vehicle is normally based means the territory of the State,
(a) whose registration mark or registration mark issued by another State (the registration mark) is affixed to the vehicle;
(b) in which a mark assigned to a vehicle by an insurance undertaking or any other distinguishing mark similar to a registration mark affixed to a vehicle has been issued if no registration mark is required for such vehicle;
(c) in which the vehicle operator is resident or registered, where no registration mark, mark assigned by the insurance undertaking or other distinguishing mark similar to the registration mark is required for such a vehicle; or
(d) where there has been a harmful event if the vehicle is without a registration mark, despite the fact that such a mark should have been affixed, or a vehicle with a registration plate which does not correspond to the vehicle, in the case of the provision of the service referred to in Article 62 (b).
(2) For the purposes of this Act, a land vehicle means a vehicle with a normal station in the Czech Republic and a vehicle dispatched from another Member State to the Czech Republic, if the Czech Republic is the country of destination, for a period of 30 days from the date on which the buyer took over the vehicle.
(3) For the purposes of this Act, a foreign vehicle means a non-domestic vehicle.
(4) For the purposes of this Act, a Member State of the European Union and another Contracting State of the Agreement on the European Economic Area are understood as a Member State.
(5) For the purposes of this Act, a third State shall mean a non-Member State.
§ 4
National insurers' office
For the purposes of this Act, the National Insurers' Office is a professional organisation which brings together insurance undertakings authorised to carry out liability insurance and which is a member of the Board of Offices operating in accordance with Recommendation 5 of the Inland Transport Committee of the United Nations Economic Commission for Europe of 25 January 1949, as amended and amended (hereinafter referred to as the "Office Council ').
§ 5
Green Card
(1) For the purposes of this Act, a green card means an international certificate certifying that the vehicle covered by this certificate has been granted liability insurance or that the obligation to make good the damage caused by the operation of that vehicle is guaranteed by the respective national insurers' office.
(2) The green card is issued on request
(a) the policyholder's insurer, in the case of liability insurance relating to the operation of a domestic vehicle;
(b) the vehicle operator, the Ministry of the Interior to a vehicle exempted from liability insurance pursuant to § 7 (1) (a) or (b), § 7 (1) (c) (1) or § 7 (1) (d); or
(c) the vehicle operator, the Ministry of Defence, to a vehicle exempted from liability insurance under § 7 (1) (c) (2).
(3) The Green Card is issued by the Office to the policy holder immediately after the agreement of liability insurance relating to the operation of a foreign vehicle (hereinafter referred to as "border insurance").

ČÁST DRUHÁ

INSURANCE OF LIABILITY

HLAVA I

Basic provisions
§ 6
Obligations of liability insurance
(1) The operator of a domestic vehicle, with the exception of the operator of a vehicle excluded from liability insurance and of the person who took over the vehicle until repair, shall ensure that the risk of damage caused by the operation of that vehicle is covered by liability insurance after:
(a) the time of registration of the vehicle when it is a vehicle subject to registration of road vehicles (the registered vehicle); or
(b) the period during which the vehicle is capable of operation, if not for a registered vehicle.
(2) It is considered that the registered vehicle operator is the operator of the vehicle under the law governing the traffic conditions of vehicles on the road.
§ 7
Vehicles excluded from liability insurance
(1) The liability insurance obligation does not apply to the operation of vehicles
(a) the components of the integrated rescue system, if they are vehicles not used for business and included in the area-related alarm plan under the law governing the integrated rescue system;
(b) the State included in the State tangible reserves;
(c) State operated
1. Security Information Service, General Inspection of Security Corps, Office for Foreign Relations and Information, mandated customs authorities, which have the status of police authority, services of the Police of the Czech Republic entrusted with investigations under the law governing criminal proceedings; or
2. Military intelligence or as vehicles of the armed forces,
(d) municipalities operated by a unit of voluntary firefighters of the municipality;
(e) other than registered persons operating only in premises or premises which are closed or otherwise not accessible to the public by law,
(f) registered if they are entered in the register of road vehicles as disabled and located outside a publicly accessible place and if the necessary measures are taken to prevent their operation; This does not apply if it is a vehicle that has been disabled due to failure to fulfil liability insurance obligations, pending the completion of the decommissioning obligations under the law governing the traffic conditions of road vehicles,
(g) registered if they are registered in a road vehicle register as being exported to another State or are extinct;
(h) stolen for as long as its owner is not able to dispose of the vehicle;
(i) other than registered if they are located outside a publicly accessible place and if the necessary measures are implemented to prevent their operation; and
(j) when participating in an organised motorist race or an organised motorist competition taking place in a defined area outside the normal operation of vehicles on closed motorist lines or routes where the driver is not obliged to comply with road traffic rules, hereinafter referred to as "motorsport."
(2) For the damage caused by the operation of the vehicle referred to in points (f) to (i) of paragraph 1 at the time of its operation without liability insurance, performance from the guarantee fund shall be provided.
(3) The driver of a vehicle exempted from liability insurance, the operation of which causes injury, shall inform the injured party that it is a vehicle exempted from liability insurance and the information necessary to exercise the right to compensation.
(4) At the request of the vehicle operator, issue a certificate of exemption from liability insurance
(a) the Ministry of Interior, if it is a vehicle exempted from liability insurance under paragraph 1 (a) or (b), paragraph 1 (c) (1) or paragraph 1 (d); or
(b) the Ministry of Defence, if the vehicle is exempt from liability insurance under paragraph 1 (c) (2).
§ 8
Specific provisions for motorsport
(1) The organiser of motorsport shall ensure that the risk of the obligation to compensate for the damage caused by the operation of vehicles in motor sport is covered by motor sport insurance with minimum insurance performance limits in accordance with Sections 14 and 15, so that such insurance covers damage arising during the preparation of motor sport, including training, testing and demonstration.
(2) The insurance of motorsport may exclude damage under § 22 (a) to (g) and damage arising from motorsport on the property of the competitor or the organiser of the motorsport.
(3) Under the conditions laid down in the Civil Code, the insurer has the right to terminate motor sport insurance and the right to withdraw from the motor sport insurance contract.
(4) The injured party shall be entitled to benefits from motor sport insurance against the insurer.
(5) For the damage caused by the operation of the vehicle in its participation in motor sport at a time when the liability insurance obligation or the motor sport insurance obligation, with the exception of the damage referred to in paragraph 2, has not been fulfilled, the performance of the guarantee fund shall be provided.
§ 9
Border insurance
(1) The driver of a foreign vehicle shall ensure that the risk of an obligation to make good the damage caused by the operation of that vehicle is covered by a frontier insurance policy. This does not apply to drivers,
(a) carrying a valid green card; or
(b) whose obligation to make good the damage caused by the operation of this vehicle is guaranteed by the national insurers' office of a foreign State.
(2) Border insurance covers only harmful events occurring in a Member State.
(3) Border insurance is negotiated with the Office at the latest when the foreign vehicle enters the Czech Republic or in the event of the expiry of the green card in the Czech Republic. Border insurance is due to the payment of insurance premiums.
(4) Legislation governing insurance and reinsurance distribution shall not apply to the negotiation or modification of frontier insurance.

HLAVA II

Conditions for liability insurance
§ 10
Basic provisions
(1) The insurer shall enter into a liability insurance contract if the application for its conclusion does not contradict the law or the insurance conditions of the insurer and if the vehicle whose operation is to be covered by the liability insurance complies with the statutory conditions for its operation.
(2) The insurer can only be an insurance company which is entitled to operate liability insurance in the Czech Republic under the law governing insurance. In the case of border insurance, the insurer is the Office.
(3) Before the conclusion of the insurance contract, the insurer may request a vehicle inspection at his expense.
(4) The insurer shall 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 payment of membership contributions to the Office are permanently fulfilled.
(5) The insured person is anyone who is obliged to replace the damaged damage caused by the operation of the vehicle whose operation relates to liability insurance. For the purposes of this Act, damaged persons are those who are entitled to compensation for damage caused by the operation of the vehicle.
§ 11
Form and content of the insurance contract
(1) A liability insurance contract can only be concluded in writing.
(2) One liability insurance contract may insure the operation of several vehicles if they have the same owner or operator, 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) The liability insurance contract, in addition to the requirements laid down by another law, shall also include the identification of the vehicle operator, the vehicle operations of which are covered by the liability insurance; where liability insurance is operated on the basis of the freedom to provide services temporarily, it shall also include the address of the place of residence or the place of residence of the claims representative in accordance with § 35.
(4) If, at the time of the conclusion of the insurance contract or the change in liability insurance, some information on the vehicle, the ignorance of which does not make it impossible to identify the vehicle, is not known, the policyholder shall communicate it to the insurer without undue delay, but no later than 15 days after the date of conclusion of the insurance contract or change in liability insurance. The policyholder shall notify the policyholder without undue delay of the change of the information relating to the policy holder, the vehicle or its operator.
§ 12
Insurance interruption
If an agreement has been reached to suspend liability insurance relating to the operation of a registered vehicle, the policyholder shall demonstrate to the insurer, before the start of the interruption of insurance, that the vehicle has been disabled under the law governing the traffic conditions of vehicles on the road; the insurance is not cancelled.
§ 13
Limit of claims
(1) For the purposes of this Act, the limit on claims is the upper limit on the performance of the insurer in a single event.
(2) The insurance performance limits must be stated separately in the insurance contract, namely the threshold for health or death claims pursuant to Paragraph 14 and the limit for property damage claims pursuant to Section 15.
(3) The minimum insurance performance limits provided for in Articles 14 and 15 shall not apply if, pursuant to a European Union Regulation issued pursuant to Article 9 of Directive 2009 / 103 / EC, as amended by Directive (EU) 2021 / 2118, those limits have been newly set at amounts higher than those laid down in Articles 14 and 15. The exchange rate declared by the Czech National Bank for the day from which the limits apply shall be used to convert the newly set limits into the Czech Crown. In such a case, for an insurance contract with an insurance premium limit lower than the minimum insurance premium limits laid down in Sections 14 and 15, the newly set minimum premium premium limits shall apply.
(4) In the case referred to in paragraph 3, the insurer shall have the right to adjust the amount of premiums for the following insurance period within 1 year from the date of publication of the newly set minimum limit in the Official Journal of the European Union. If the insurer does not notify the policyholder of an adjustment to the amount of the premiums within that period, his right to an adjustment to the amount of the premiums shall cease.
(5) If the policyholder does not agree to the level of the adjusted premiums referred to in paragraph 4, the policy holder may object within 1 month of the date on which he became aware of the adjustment. In such a case, the insurance shall cease to exist on the date on which the policyholder's disagreement reaches the insurer. However, if the insurer fails to note this consequence of the policy holder in the notification referred to in paragraph 4, the insurance shall continue to exist and the amount of the premium shall not change if the policy holder disagrees.
§ 14
Minimum insurance performance limit on injury or death
(1) The insurance performance limit in the event of injury referred to in Article 17 (2) (a) must correspond to at least CZK 50 000 000 for each injured party, including reimbursement of the costs referred to in paragraph 2.
(2) Within the limit referred to in paragraph 1, the costs incurred in respect of the health services covered by Section 18 (a), the additional regression compensation referred to in Section 18 (b) and (d) and the costs of intervention by the Fire Rescue Corps of the Czech Republic ("the Fire Rescue Corps') and the units of the Municipality's voluntary fire brigade referred to in Section 18 (c) shall be reimbursed if the action is related to a harmful event resulting in injury or death.
§ 15
Minimum premium payment limit for damage to property
(1) Limit of insurance claims in respect of damages pursuant to § 17 (2) (b) and (c) must correspond to at least CZK 50 000 000 regardless of the number of injured persons.
(2) If the total amount of rights applied exceeds the more degraded limit on claims, each of them shall be reduced in proportion to the total amount of rights applied by all the injured parties.
(3) Within the limit referred to in paragraph 1, the costs of intervention by the fire brigade and the unit of the community's voluntary fire brigade pursuant to Paragraph 18 (c) shall be reimbursed if the intervention is related to a harmful event involving damage to property.
§ 16
Damage in liability insurance
(1) In determining the amount of premiums or changes thereto, the insurer shall take into account, in a non-discriminatory manner, the previous malpractice of insurance of liability of the policyholder or, where agreed, the vehicle operator, if not the policyholder, for a period of at least 5 years, but not more than 20 years.
(2) The insurer, taking into account the malpractice referred to in paragraph 1, does not take into account:
(a) the period of interruption of liability insurance; and
(b) performance in the event of an insurance event where an obligation arises to compensate the person who:
1. has taken over the vehicle into repair; or
2. use the vehicle without knowledge or against the will of the vehicle operator; This does not apply if the vehicle operator has allowed such use of the vehicle out of negligence.
(3) The insurer shall publish on its website guidelines on the use of the declaration of malfunctioning of liability insurance when determining the level of premiums.
(4) The Office processes data on the malicious course of liability insurance. The insurer who transmitted this information to the Office is responsible for their correctness.
Scope of liability insurance
§ 17
(1) The liability insurance shall provide insurance premiums for 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 replace him by the insurer to the extent and extent that the insurer has become liable for compensation,
(a) harm caused by injury or death;
(b) effectively incurred costs associated with the care of the injured animal and damage caused by damage, destruction or loss of the case, as well as damage caused by the theft of the case, where the natural person has lost the ability to maintain it,
(c) income forgone; and
(d) effectively incurred costs associated with legal representation in the exercise of the rights referred to in points (a) to (c); in respect of damage under (b) or (c), however, only in the event of a failure to expire in accordance with Article 2798 (2) of the Civil Code or of an unjustified refusal or an unjustified reduction of insurance benefits by the insurer.
(3) The right to benefit from insurance arises if the event occurred during the period of liability insurance, except for the period of interruption.
(4) The insurer shall provide insurance premiums to the extent and at the level referred to in paragraph 2 in cash, unless otherwise agreed with the insurer, up to and including the limit of insurance premiums. If the agreed premium rate is lower than the minimum premium rate, the insurer shall provide the premium up to the minimum premium rate.
§ 18
The insured has the right to replace the insurer
(a) the costs incurred by the health insurance undertaking for the full or partial payment of public health insurance services under the Act governing public health insurance, where the health insurance undertaking has paid those health services to the injured party;
(b) regression compensation under the sickness insurance law;
(c) the cost of intervention by a fire brigade or a volunteer fire brigade covered by the law governing the fire brigade;
(d) a regression refund to an institution from another Member State which, in accordance with the legislation governing the social security system, has provided the injured party with the benefit of that security and which is entitled under those rules to compensation for the benefit of the insured; and
(e) rescue costs under the Civil Code, including costs incurred to fulfil obligations for safety, hygiene or environmental reasons to eliminate the consequences of an accident.
Territorial scope of liability insurance
§ 19
The liability insurance shall be covered on the basis of a single insurance claim arising in the Member States and in the territory of the States, which shall determine the assembly of members of the Office pursuant to Paragraph 57 (4) (g).
§ 20
(1) In the event of damage caused by the operation of a domestic vehicle in another Member State, the extent of liability insurance shall be governed by the legislation of that State, unless this extent is wider under this law or under an insurance contract.
(2) The damage caused by the operation of a vehicle to a citizen of a Member State during its direct journey between the territories of 2 Member States shall be covered by the legislation of the Member State in which the vehicle is normally based, also where no national insurers' office is in the territory where such a citizen passes through and where there is a harmful event.
Exemptions from liability insurance
§ 21
(1) Where the damage to the owner of a vehicle which is not its operator is caused by the operation of its vehicle which was driven by another person at the time of the occurrence of the event of damage, or where the damage is caused by a person who has suffered damage to the vehicle which is legally treated as his own or who is legally exercising his right to use the vehicle, and if at the time of the occurrence of the event, another person has been driving the vehicle, the insurer shall replace that owner or that person only the damage referred to in Article 17 (2) (a), including the costs incurred by the health insurance undertaking pursuant to Article 18 (a) and other regression compensation pursuant to Article 18 (b) and (d).
(2) In the event of a collision of vehicles owned by the same person, the right to claims for damage caused to that person shall arise only if it is a different operator of the vehicles involved in the occurrence of the event and if that person is not the operator of the vehicle on which the damage occurred.
§ 22
The insurer does not provide insurance benefits for:
(a) the damage suffered by the driver of the vehicle in the course of which the damage occurred to the extent that it arose or increased as a result of circumstances attributable to him;
(b) damage to a vehicle the operation of which caused damage, as well as to goods carried by that vehicle, with the exception of damage caused by a case which was carried by that vehicle by the person carrying it at the time of the occurrence of the harmful event, to the extent that the insured person is obliged to make good the damage;
(c) damage, as referred to in Article 17 (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, if not damage caused by the operation of another vehicle;
(d) the damage caused by handling the load of the stationary vehicle;
(e) the costs incurred by the driver of the vehicle in the course of which the damage was caused, to the extent that it arose or increased as a result of circumstances attributable to him, by the provision of medical care, sickness insurance or pension insurance;
(f) the damage caused by the operation of the vehicle in a terrorist act or a war event, if such operation is directly related to that act or event; and
(g) the damage caused by the use of the vehicle in motor sport.
§ 23
Prohibition to refuse or reduce performance
The performance of the damage caused by the operation of the vehicle, to the extent that the insured is obliged to compensate for that damage, may not be refused or reduced.
§ 24
Special provisions for the loss of liability insurance
(1) The liability insurance relating to the operation of a domestic vehicle also ceases to exist
(a) on the basis of a statement under the Civil Code,
(b) on the date of notification of the loss of the insurance interest of the policyholder to the insurer;
(c) by alienation; If the time of theft of the vehicle cannot be accurately determined, the vehicle shall be deemed to have been stolen once the police of the Czech Republic or the police authority of another State has accepted the notification of the theft of the vehicle,
(d) on the date of its decommissioning under the law governing the conditions for the operation of vehicles on the road, unless such insurance has been interrupted; or
(e) the date of registration of its disappearance in the register of road vehicles; if it is a vehicle other than a registered vehicle, the date on which the irreversible change occurred preventing the operation of the domestic vehicle.
(2) The policyholder shall notify the insurer without undue delay of the occurrence of the event referred to in paragraph 1 (b) to (e), the change of ownership of the vehicle and the change of its operator.
§ 25
Declaration on the malpractice of liability insurance
(1) An insurer for whom an insurance of liability is agreed or for whom the last insurance has been agreed shall give a declaration to the policyholder of the malfunctioning of the liability insurance within 15 days of the date on which the policyholder requests it. The declaration shall be drawn up in Czech and English. If the insurer has ceased his activities in liability insurance in the Czech Republic, the Office will issue this statement.
(2) The form and particulars of the declaration referred to in paragraph 1 are governed by the directly applicable European Union Regulation issued pursuant to Article 16 of Directive 2009 / 103 / EC, as amended by Directive (EU) 2021 / 2118.

HLAVA III

Rights and obligations arising from liability insurance
§ 26
Obligations of the insured against the injured party
The insured shall, without undue delay, provide the injured party with the information necessary for the exercise of the right of the injured party to the performance referred to in Article 28 (1), but at least:
(a) his name and address of his place of residence;
(b) the name and address of the owner and the vehicle operator's address;
(c) the name of the insurer and, where appropriate, the address of the insurer's branch in the Czech Republic;
(d) the number of the insurance contract; and

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Regulation Information

CitationAct No. 30 / 2024 Coll., on Insurance of Vehicle Liability
Regulation TypeLaw
Author-
CollectionCode of Laws
Date of Promulgation13.02.2024
Effective from01.04.2024
Effective until-
Status Valid
Parliamentary Paper: Paper No. 517

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