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.  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.

Information for participants of a traffic accident in the Czech Republic

If you have caused damage by your vehicle in the Czech Republic

Tell the injured party your name, surname and place of residence, name, surname and place of residence or company name and registered office of the vehicle owner and operator, company name and registered office of the insurer, with whom the MTPL Insurance was concluded, and the insurance contract number, registration (plate) number of your vehicle, with which the damage was caused.

Call the Police of the Czech Republic in case that a person is injured or killed during a traffic accident, a material damage to any of the vehicles involved, including the goods transported exceeds the amount of CZK 100.000 or a material damage was caused to a property of a third party. The police must also be called if a road component or accessory has been damaged (e.g. a guardrail, traffic sign, bridge railing, etc.), or if the parties involved in the accident are unable to ensure that road traffic is restored. Breach of the obligation to report a traffic accident to the Police of the Czech Republic is considered as an offence. Assistance of the Police of the Czech Republic by the traffic accident is free of charge.. If a traffic accident is investigated by the Police of the Czech Republic, sign the police protocol only if you agree to its wording. Otherwise, state your reservations in it.

In case participants involved in a traffic accident have no obligation to report a traffic accident to the police participants are required to fill in the traffic accident form, sign it and immediately hand it over to the insurer. The form must contain relevant data regarding a traffic accident (date, time and place, identification of participants and vehicles, description of the cause, course and consequences of a traffic accident). It is recommended to take photo documentation of the place of a traffic accident and damaged car parts, ideally from multiple angles. It is appropriate to use the "European Accident Record" form. The template of the form (in Czech) can be downloaded from the Ministry of Transport's website (www.mdcr.cz), it is recommended to have this form printed with you for the case of need.

Write down contact details of traffic accident participants and witnesses.

Without any delay notify your insurer in writing that a loss event has occurred, submit relevant documents specifying all facts of this loss event including a statement of requested compensation and its amount. Follow your insurer's instructions during the investigation. The injured party's right to compensation will be investigated within 3 months from the date of filing a claim and the insurer will inform you about an amount of insurance cover or provide an explanation of rejected or reduced claims.

In case the injured party resides in another state the person who caused the accident provides him/her documents for claiming his/her right to compensation and notify his/her own insurer that a loss event has occurred.

If anyone else has caused damage to you by his vehicle in the Czech Republic

Find out from the offender (if possible by examination of his/her documents) name, surname and place of residence, name, surname and place of residence or company name and registered office of the vehicle owner, registration (plate) number and international code of the country of registration of the vehicle by which the damage was caused, company name and registered office of the insurer, with whom the MTPL Insurance was concluded and the insurance contract number. In case the vehicle with which the damage was caused is registered abroad, find out also the Green Card number and its time validity or the frontier insurance number of such vehicle and if it is possible make a copy of these documents.

The rules for reporting a traffic accident to the Police of the Czech Republic or filling up the traffic accident form (optimally the "European Report of a Traffic Accident" form) are the same as those described above for all traffic accidents in the Czech Republic.

Write down contact details of traffic accident participants and witnesses. Provide your name and address to any participant of the traffic accident who ask you for it.

You should contact the relevant MTPL insurer of the offender with your claim for compensation and with all relevant documentation which could prove the liability of the driver or operator of other vehicle for the damage. In case the damage was caused by the operation of an unidentified vehicle or by a person without the MTPL insurance the injured party can contact the Czech Insurers' Bureau which provides compensation from the guarantee fund. The insurer or the Czech Insurers' Bureau will investigate announced loss event within 3 months from the date of filing a claim and inform about amount of insurance cover or provide an explanation of rejected or reduced claims.

If the offender of a traffic accident is a driver of a vehicle registered abroad apply the same rules and procedures as in case of an accident involving Czech citizens. Search out the information on a claims representative appointed by offender‘s MTPL insurer in an information centre on the website of The Czech Insurers' Bureau. The claims representative will handle your claim for compensation and ensure payment of compensation. In case no claims representative is appointed notify the Czech Insurers' Bureau which is under an obligation to provide compensation.

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.):

• loss as a result of injury or death caused by bodily harm or by killing
• the cost of caring for an injured animal and loss caused by destruction or damage of property or theft of property;
• loss of profits;
• the costs of legal representation in pursuing the claims referred to above.

The insured has the right to be indemnified by the insurer (see in detail § 18 of Act No. 30/2024 Coll.):

• the costs incurred by the health insurer for medical services covered by public health insurance pursuant to the Act regulating public health insurance;
• recourse compensation under the Act governing sickness insurance; 
• the costs of intervention by a Fire Rescue Service or a volunteer fire brigade paid under the law governing Fire RescueServices;
• recourse compensation to an institution from another Member State which, in accordance with the legislation governing the social security system, provided to the injured person  a benefit under that social security system;
• salvage costs pursuant to the Civil Code, including costs incurred in dealing with the consequences of a traffic accident.

 MTPL Insurance does not cover namely (see in detail  § 22 of Act No. 30/2024 Coll.):

• damage caused to the traffic accident offender;
• damage caused to the offender’s vehicle and to objects transported by offender’s vehicle (with the exception of damage to property which the person transported by the vehicle was wearing or carrying at the time of the occurrence, to the extent that the insured is obliged to compensate for the damage);
• damage caused between the vehicles of a combination consisting of a motor vehicle and a trailer, and damage to goods carried by these vehicles, unless the damage is caused by the operation of another vehicle;
• damage caused by the handling of the load of a stationary vehicle;
• treatment costs, sickness insurance benefits and pensions benefits as a result of personal injury or death of the person who caused the accident; 
• damage caused by the operation of a vehicle in an act of terrorism or an act of war;
• injury arising from the use of a vehicle in motorsport events and activities.

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 relevant insurance undertaking, eventually its claims representative
• The Czech Insurers’ Bureau, which:
  • manages the guarantee fund;
  •  arranges frontier insurance, which is taken out by the driver of a foreign vehicle without valid insurance for the Czech Republic when entering the Czech Republic;
  • acts as an information centre;
  • operates the driver helpline 1224;
  • registers a list of claims representatives of Czech insurers abroad and foreign claims representatives in the Czech Republic. 

Where to dispute a decision taken by the insurance undertaking

• The responsible court in the Czech Republic;
• Ombudsman of the Czech Insurance Association (kancelar@ombudsmancap.cz);
• The Czech National Bank as an insurance supervisory authority - in case of complaint about a procedure of the insurance undertaking