The Motor Third-Party Liability Insurance
The Motor Third-Party Liability Insurance („MTPL insurance“) is a compulsory liability insurance, the basic purpose of which is to ensure compensation for damage to health and property caused by operation of a vehicle. MTPL insurance is regulated by Act No. 30/2024 Coll. The Ministry of Finance issued Decree No. 69/2024 Coll. to this Act.
The obligation to take out third party liability insurance is transferred from the owner of a vehicle to the operator of a vehicle, as compared to the previous legislation. The operator of a vehicle is defined in accordance with the law governing the conditions of operation of vehicles on roads. Therefore, the obligation to insure the liability of a vehicle always applies to the operator and not to the driver, who, for example, temporarily borrows a vehicle. This also applies in the case of short-term use of shared scooters.
The operation of a vehicle is then understood as any use of a vehicle that is consistent with the vehicle’s function as a means of transport irrespective of the vehicle’s characteristics and irrespective of the terrain on which the vehicle is used and of whether it is stationary or in motion.
MTPL insurance has be taken out for all motor vehicles with a maximum design speed of more than 25 km.h-1 or with an operating mass of more than 25 kg and a maximum design speed of more than 14 km.h-1, including trailers. A purely mechanically propelled vehicle is also a moped meeting the above conditions, with the exception of a moped equipped with an auxiliary power unit whose main purpose is to assist pedalling. For example, electric scooters or segways are also covered by compulsory insurance. Wheelchairs used exclusively by disabled persons are not considered to be a vehicle.
MTPL Insurance Act No. 30/2024 Coll. provides for a number of exemptions from the obligation to insure motor vehicles - this applies, for example, to vehicles other than registered vehicles if they are not located in publicly accessible areas and if the necessary measures are taken to prevent their operation or to vehicles other than registered vehicles that are operated only in closed or otherwise inaccessible premises or buildings to the public. Such inaccessibility may consist either in the fact that the public is prevented from entering a particular space or premises by a physical barrier (e.g. a fence, wall or other enclosure) or in the fact that the owner exercises his authority to legally exclude the public from using his space or premises. In the case of a physical restriction, the obstruction is not required to operate absolutely. Thus, an exception is made for example for garden tractors that are operated exclusively on private land. However, they must have insurance when they go outside it (for example, on the road).
The exemption from MTPL insurance obligation also applies to the operation of vehicles during their participation in an organised motor race in a defined area outside the regular traffic or on closed motor racing tracks or routes where the driver is not obliged to comply with the rules of road traffic, whereby the organiser of the motor race will be obliged to provide insurance for the motor race in accordance with a special regulation. A full list of exemptions can be found in § 7 of the Motor Third Party Insurance Act.
In terms of the territorial scope of MTPL insurance, it covers claims arising in the EU Member States and in other countries decided by the Czech Insurers' Bureau (www.ckp.cz). From 1 October 2024, the new legislation on MTPL insurance has abolished the green cards for proving MTPL insurance in the Czech Republic and has been replaced by online registration of the insurance in question. However, we recommend to take your green card with you when travelling abroad. The green card (the so-called International Automobile Insurance Card) is issued by the insurer at the request of the policyholder in the case of liability insurance relating to the operation of a domestic vehicle. In the case of MTPL insurance relating to the operation of a foreign vehicle, the green card is issued by the Czech Insurers' Bureau immediately after the insurance is taken out.
Amount of insurance coverage
The insurance policy limit represents the maximum amount that is paid to the injured party in case of a loss event. The minimum statutory limit is CZK 50 million for each injured party and CZK 50 million for damage to property, irrespective of the number of injured parties. In practice, this means that in case of a loss event, the insurer will pay for the actual damage caused to the injured party, up to a maximum of the agreed insurance limits.
MTPL insurance covers (see in detail § 17 of Act No. 30/2024 Coll.):
The insured has the right to be indemnified by the insurer (see in detail §18 of Act No. 30/2024 Coll.):
MTPL Insurance does not cover namely (see in detail § 22 of Act No. 30/2024 Coll.):
If the injured party disagrees with the amount of compensation
The injured party claims compensation from the relevant insurer of the traffic accident’s offender.
The injured party's right to compensation will be investigated within 3 months from the date of claiming and the insurer will notify the amount of indemnity or provide an explanation of rejected or reduced claims. If the injured party does not receive this notification within 3 months, he/she has an opportunity to complain to the Czech National Bank about the procedure of the insurance undertaking. The Czech National Bank is an insurance supervisory authority in the Czech Republic. If the injured party is not satisfied with the amount of compensation, he/she can send a complaint to address of the registered office of the insurer. The insurer will notify the complainant without undue delay of the receiving of the complaint and of the manner and period to settle the complaint. In case the required compensation has not been achieved, the injured party has a possibility to turn to the competent court, or ask the Ombudsman of the Czech Insurance Association to resolve the dispute.
Emergency telephone number 112
Emergency telephone number 112 is a common emergency telephone number available in all EU Member States and also in Lichtenstein, Norway, Switzerland, Turkey and Iceland. The number 112 can be dialed free of charge from most mobile telephones and, in some countries, from fixed telephones in order to reach emergency services (ambulance, fire brigade, police). A specially trained emergency operator will recommend a suitable procedure in Czech, English or German.
Assistance services
Arranging for assistance services is strongly recommended. The insurance undertaking provides supplementary assistance services together with the MTPL insurance or motor hull insurance. Basic assistance is used in case of a vehicle accident and it is advisable to extend it to a vehicle breakdown.
Determination of the amount of premium and taking into a account the history of claims
In the Czech Republic the insurer is obliged to take into account the history of claims of MTPL Insurance so-called Bonus/Malus system while determining the premium. It is therefore advisable to compare offers on the market. The insurer provides a discount on premium in case of no traffic accidents. If a loss event has occurred, the premium increases. If the policyholder asks the insurer to provide him/her with a statement of all previous claims, the insurer is obliged to provide it within 15 days. Other criteria influencing the premium are e.g. vehicle category, engine capacity or engine power, selected limit of indemnity and the segmentation criteria (age, residence of the vehicle owner, age of the vehicle, etc.).
Where to obtain detailed information
The Czech Insurers’ Bureau (www.ckp.cz), which:
Where to dispute a decision taken by the insurance undertaking