site.btaParliament Adopts Amendments at First Reading to Insurance Code Concerning Civil Liability Insurance

On Thursday, Parliament adopted at first reading amendments to the Insurance Code submitted by the Council of Ministers. The amendments were supported by 106 MPs, five were against, and 34 abstained.

Some of the proposed amendments are related to civil liability insurance. A harmonized mechanism is being introduced at European Union level to guarantee the claims of injured parties in the event of the insolvency of an insurer under compulsory motor insurance. 

The minimum insurance amounts are being updated. The minimum insurance amount for compulsory motor third-party liability insurance for non-material and material damage resulting from bodily injury or death is the equivalent of EUR 6,450,000 for each event, regardless of the number of injured persons, and for damage to property (belongings) – the equivalent of EUR 1,300,000 for each event, regardless of the number of injured persons.

A new definition of "vehicle" is proposed and exceptions to the insurance obligation are provided for.

The changes stipulate that insurance claim certificates should be issued centrally by the Guarantee Fund on the basis of insurance claim data contained in the electronic register maintained by it. In this regard, changes to the current national regulation of the bonus-malus system are proposed - adjustment of the insurance premium for compulsory civil liability insurance depending on the claims made. A change in the mechanism for financing the Guarantee Fund's funds is also proposed.