Compulsory insurance for slow work machines: What financial experts say about it

Compulsory insurance for slow work machines: What financial experts say about it

According to a report by “Süddeutsche.de”, the federal government is planning to introduce compulsory insurance for slow work machines and vehicles with a speed of between six and 20 kilometers per hour. Previously, these vehicles were exempt from compulsory insurance because they were generally covered by the owners' general liability insurance. The new regulation would mean that liability insurance is mandatory and that violations of this obligation will be sanctioned from the end of December 2023.

The General Association of Insurers (GDV) considers the new regulation to be unnecessary because the current solution is sufficient. The association argues that so far there have been no claims reported where general liability insurance coverage was not sufficient. The GDV also warns of increasing costs for owners of work machines and forklifts due to the planned regulation. The insured amounts would have to be raised to the level of motor vehicle insurance, which would require an adjustment of several hundred thousand contracts.

The planned regulation is due to an EU directive on motor vehicle liability insurance and compulsory insurance, which must be implemented by December 23, 2023. A main point of this directive concerns the standardization of compensation for traffic victims in the event of the insolvency of a car insurer.

It remains to be seen when the Bundestag's Legal Affairs Committee will deal with the draft law. The federal government is also considering postponing the penalties for non-insurance based on a suggestion from the Federal Council.

The new insurance requirement only applies to vehicles that are used on publicly accessible land. Vehicles that are only driven in a fenced-in home garden are exempt from the regulation.

The introduction of compulsory insurance could have various effects. On the one hand, owners of slow-moving machines and forklifts would have to pay higher insurance sums, which could lead to rising costs. On the other hand, the introduction of compulsory insurance would probably lead to an increase in insurance contracts for these vehicles, as previously uninsured vehicles would now have to be insured. This could lead to a changed market landscape for insurance in this area.

Source: According to a report by www.sueddeutsche.de