Czech Republic Insurance Information

CIA link to demographic/economic data on Czech Republic

General Czech Republic Insurance Information

• Compulsory Insurance:
  
  1. Third Party Automobile Liability;
  2. Workers’ Compensation (Social Security Scheme) and Employer’s Liability;
  3. Liability for lawyers, auditors, architects, civil engineers, airlines and hunters.
• Non-Admitted Insurance:
  Prohibited.
• Policy Wordings & Rates / Tariffs Controlled:
  Wordings are determined by Insurers but must be approved by the Insurance Supervisory. There are no tariffs with the exception of the compulsory coverages.
• Policy Language:
  Czech.
• Types of Insurance Restricted to Government Institutions:
  None known.
• Policy Currency:
  Czech koruna (CZK). U.S. $ insurance is not available.
• Currency Restrictions / Exchange Controls:
  Premiums and claims are paid in Czech Korunas only. The currency is only freely exchanged for legal and natural citizens and only up to a certain limit. Owners and investors are allowed to exchange earnings from Korunas into foreign currencies.
• Policy Period:
  Annual with tacit renewal provisions for most Insurers.
• Cancellation Provisions:
  No standard in the market; however, for planning purposes consider the following:
  90 written notice prior to policy termination or end;
  Not longer than 90 days after a claim; and
  Any time with mutual agreement.
• Premium Tax, etc. paid by Insured:
  None known at this time. There are no withholding taxes deducted from insurance or reinsurance premiums paid abroad.
• Insurance Companies:
  Of the nearly 2 dozen Insurers, the Ceska Pojistovna controls the market. This is the Insurer which by law writes the automobile liability cover.
• Brokers:
  Nearly 50 brokers are now registered. Brokers can only represent locally licensed Insurers.
• Brokerage Commissions:
  
• Broker of Record Letters:
  Market practice.
• Insurance Cos.:
  There are no restrictions on foreign ownership.
• Reinsurance:
  No restrictions, although approval to place reinsurance abroad is required.
• Local Natural Hazards:
  Flood.
• Other Information:
  There are not yet any reinsurance pools for special risks. Brokers are not allowed to place, service or otherwise be involved with compulsory coverages.

Property Insurance

• Fire:
  Standard fire perils include - fire, lightning, explosion and falling aircraft. Vandalism, terrorism are available in the market for an additional premium charge.
• All Risk:
  Available (limited use and few Insurers offer).
• Coinsurance:
  100%.
• Blanket Insurance:
  Available.
• Business Interruption:
  UK Loss of Profits form used.
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems:
  Available - negotiable credit.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Local.

  General / Public Liability

• Available Wordings:
  Local.
• Comments:
  Policies are available on either an occurrence or a claims made basis.

Automobile / Motor

• Compulsory Limits:
  Unlimited.
• Comments:
  Insured and any licensed individual driving with Insured’s permission are covered under the policy. Passengers are deemed to be Third Parties.

Workers’ Compensation

• Comments:
  Workers’ Compensation and Employer’s Liability are compulsory coverages and are included under the Social Security Scheme. All employees (including legally employed foreign nationals) are covered. Extra-Territorial Benefits are not included in the Scheme. Medical Expenses and Occupational Disease benefits are included.

Marine

• Available Wordings:
  Local. Imports and exports need not be locally insured.

Crime

• Available Coverages:
  Theft and Robbery are generally not available locally due extreme losses. Fidelity is available.