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Strict Amendment to the Law: Compulsory Liability Insurance for Certain Electric Scooters, Segways, and Small Tractors

Strict Amendment to the Law: Compulsory Liability Insurance for Certain Electric Scooters, Segways, and Small Tractors

Hungary
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According to a statement made by the Association of Hungarian Insurers, from 16 July 2024, the range of vehicles for which compulsory motor vehicle liability insurance must be taken out will be extended.

Based on the new provisions of the act on compulsory motor vehicle liability insurance, adopted on 30 April 2024 and published on 9 May 2024, certain micromobility devices, including certain electric scooters, will be covered by compulsory motor vehicle liability insurance. The net weight of the vehicle and its maximum design speed determine whether or not liability insurance is required for the vehicle.

The law defines a motor vehicle as any vehicle that travels on land (but not on rails) and is propelled solely by mechanical power, therefore not human or animal power. This includes all these types of vehicles regardless of their registration status (however, it excludes wheelchair vehicles intended for persons with reduced mobility, pedelec bicycles, and e-mopeds used by persons with reduced mobility). The motor vehicles defined by the law must have a maximum design speed exceeding 25 km/h or a maximum net mass exceeding 25 kg and a maximum design speed of 14 km/h. Additionally, the definition encompasses any trailer or semi-trailer intended for use with the motor vehicle, even if not currently coupled to it.

The association has published a diagram on its website for owners, keepers or users of the vehicles concerned to help them understand whether they may be subject to compulsory third-party liability insurance. It is the responsibility of each operator to check the net mass and design speed of his vehicle. As it is a completely new provision, insurers have a deadline until 8 June 2024 to set their tariffs for micromobility devices and those concerned must have a valid compulsory liability insurance policy from 16 July 2024. According to the law on compulsory motor vehicle liability insurance, the current user of a vehicle that has not been registered, i.e. that does not have a registration number, is also considered the keeper. Therefore, before using a vehicle, it is essential to check whether it is required to have or has compulsory motor insurance.

By Gabriella Galik, Founding Partner, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

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