The costs of insurance benefits from compulsory third party liability coverage are growing and may not be sustainable in the long run with continuing stagnation of insurance premium. The information was provided by the Czech Insurers Association (ČAP) and Czech Insurers Office (ČKP).
The association register an increase in costs by ca. CZK 1.3bn p.a. to CZK 12.9bn, while average compulsory third party liability premium dropped to CZK 2,764. Long-term liabilities for health damages increased by CZK 1.8bn p.a. due to the new Civic Code.
Negative balance of compulsory third party liability may be attributed primarily to the riskiest segment of trucks, trailers and other vehicles weighing 3.5t+ tons.
