Summary

The directives of the European Union significantly influence the motor insurance regulating norms, the purpose of which is to harmonize the rules of insurance against civil liability for motor vehicle accidents in the Member States.

Article 3 of Directive 2009/103/EC obliges Member States to take measures to ensure that the civil liability arising from damage caused by all vehicles normally based in its territory is covered by insurance. Based on Directive (EU) 2021/2118 and the decisions of the European Court of Justice in recent years, the only situation that excludes an insured event at the time of an accident is when the normal function of the vehicle was ‘use for purposes other than as a means of transport’. However, in the Motor Insurance Act the insurer’s performance obligation is limited mainly in three provisions – subsection 8 (1) and (2), subsection 23 (1) and § 33. At the end of 2023, the drafting procedure of the act amending the Motor Insurance Act and other related acts was initiated.

The purpose of the article is to reach a conclusion on whether some serious inconsistencies – in light of the objective of the protection of persons injured in an accident caused by a vehicle – have been removed from the Motor Insurance Act or whether they need further attention. The shortcomings of the draft are connected to an alternative compensation mechanism or guarantee if the vehicle was being used as a means of committing a terrorist offence at the time of the incident. Consideration should be given to subsection 33 (5), in which the person who caused the damage is liable for compensation for loss of earnings even in the absence of death, personal injury or damage to health. In addition, the exclusion in subsection 33 (8) should not apply where the damage is caused to the owner of the vehicle by a pedestrian, cyclist or other non-motorised road user. For the sake of legal clarity, subsection 33 (12) should also be repealed, as its purpose is incomprehensible and might provide the wrong insight.