AMENDMENT TO THE ACT ON COMPULSORY CONTRACTUAL LIABILITY INSURANCE FOR DAMAGE CAUSED BY THE OPERATION OF A MOTOR VEHICLE

#126Amendment to the Act on compulsory contractual liability insurance for damage caused by the operation of a motor vehicle

As of August 1, 2024, the amendment to Act No. 381/2001 Coll. compulsory contractual liability insurance for damage caused by the operation of a motor vehicle, which brings changes for the insured and injured parties in the area of ​​their rights and obligations.

The primary goal of the approved amendment to the law is the implementation of the directive of the European Parliament and the Council of the European Union on liability insurance for damage caused by the operation of a motor vehicle, but also the implementation of suggestions from application practice and the increase of protection of persons injured as a result of a traffic accident caused by a motor vehicle.

The most significant changes brought by the amendment to the law are:

1. Expansion of the range of vehicles that are required to be insured. This change concerns vehicles whose maximum design speed is higher than 25 km/h and vehicles whose maximum design speed is higher than 14 km/h and whose maximum design weight exceeds 25 kg. In practice, this means that electric scooters, electric scooters or autonomous vehicles will be contractually insured. However, a wheelchair, which is used exclusively by persons with physical disabilities, is excluded from the range of compulsorily insured vehicles.
2. Change in the mechanism for calculating the amount of damage, which will now be uniformly determined based on the decree of the Ministry of Justice of the Slovak Republic. In connection with the amount of the damage, the minimum limits of the insurance payment from one damage event are also changing, which are now determined for damage to health to 6.45 million. EUR, for property damage of 1.3 million. Eur. The change in the minimum limits is intended to ensure the same minimum protection for the injured within the European Union.
3. Recourse application of the insured's claim against the insurer in the event that the insured himself paid compensation to the injured party. The introduction of this right of recourse is a response to suggestions from application practice, when the insured compensated the damage caused to the victim in civil or criminal proceedings, but the law did not further regulate the insured's right to reimbursement against the insurer.
4. The injured party's right to claim replacement insurance benefits against the Slovak Insurers' Office in cases where the vehicle that caused the damage is insured by an insurer that goes into bankruptcy or liquidation. The change also applies to an insurer from another member state who is not a member of the Slovak Office of Insurers.

Other changes brought by the amendment of the law are the modification of the amount of fines due to failure to take out compulsory contractual insurance, from the original 16.60 to 3319.40 Euros to the new 50 Euros to 5000 Euros and the waiver of the obligation of the insured to notify the insurer of the loss event in writing. It is now possible to notify the insurer of a claim by phone, via a form on the website or via a mobile application.