New regulation of motor vehicle liability insurance for small vehicles: Exclusive demands from Justice Minister Buschmann (FDP) are met with resistance.

New regulation of motor vehicle liability insurance for small vehicles: Exclusive demands from Justice Minister Buschmann (FDP) are met with resistance.

According to a report by www.br.de, Federal Justice Minister Marco Buschmann (FDP) is planning to make small vehicles such as sit-on lawnmowers or forklifts compulsory to be insured in the future in order to implement an EU requirement that generally requires liability insurance for motor vehicles. However, the new regulation of motor vehicle liability insurance is controversial and has initially failed in the Federal Council.

The insurance industry, represented by the General Association of the German Insurance Industry (GDV), rejects the new regulation and prefers to retain the old regulation, under which small work machines were covered by normal liability insurance. The introduction of separate motor vehicle liability insurance for small devices has been criticized because it is feared that millions of these devices will not be able to be registered by the deadline. There would also be drastic penalties for uninsured small vehicles.

Regardless of the outcome of the bill, this discussion has a potential impact on consumers and businesses. If the new regulation comes into force, companies and private individuals would face additional costs and bureaucratic effort for registering and insuring their small vehicles. In addition, a high coverage amount of almost nine million euros for each insured small vehicle could lead to increased insurance costs.

Overall, there is resistance to this new regulation, both from states in the Federal Council and from the insurance industry. It remains to be seen what the law will ultimately look like and what impact it will have on the market, consumers and the industry.