Limit of coverage in the motor liability insurance


Motor liability insurance provides the protection for persons sustaining damages as well as motor vehicle owners. Due to its characteristics and problems that insureds may have in the course of claim indemnification, the motor liability insurance is compulsory.
The motor liability insurance is equally significant both domestically and internationally which affects various types of connecting, affiliating and harmonizing. Harmonization and standardization of certain elements of the motor third party liability insurance is provided for trough the European Union and Council of Bureaux with the membership of almost all European countries and the amount of minimum limits of coverage is one of the most important.
The minimum limit of coverage for the motor liability insurance is one of the lowest in the European countries for a long period of time. In order to prevent the negative impact and to provide the quality protection of a very large number of insurance product users in line with the European standards, which have been fulfilled by almost all member states of the green card system it is proposed to amend the Law of compuslory motor liability, in order to implement as soon as possible the limits prescribed in 2009. The second phase following the detailed comparative analysis would be to prescribe the unlimited coverage, excluding the act of terrorism. The bonus-malus system should be amended due to the number of inconsistencies, leading then to fairer price for motor liability insurance policies depending on one’s own contribution to risk occurrence.