Compulsory insurance is defined as insurance which is imposed by law on a person or group of persons in order to maintain in force insurance cover against their specified legal liability or property.
The persons defined by this law are obliged to take out this insurance.
According to the law, the following Compulsory Insurances apply in Cyprus:
Motor Vehicle Insurance Plans
It was first implemented in 1954. Then in 1992, it was extended to cover the legal liability of the driver of a Motor Vehicle, on the road, for causing death and/or bodily injury to third persons as well as material damage to the property of third parties.
The minimum limits in this insurance as provided by law are:
- Bodily injury or death of any person €33.540,000
- Damage to third party property €1.120,000
- Hospitalization per person €35,00
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Employer Legal Liability Insurance
It entered into force on 1/11/1997. Under this compulsory insurance, employers are required to maintain in force insurance coverage against their legal liability for injury, death or occupational disease of their employees. It is important to mention the fact that the above should unfold during the performance of their duties.
The minimum limits in this insurance as provided by law are:
- For each incident €160,000
- For each incident or series of incidents from the same root cause €3,415,000
- For the insurance period €5.125,000
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Insurance of commonly owned premises
The Management Committee of each building in excess of 5 units shall maintain insurance, in its name, against fire, lightning and earthquake. The amount of insurance shall be determined by the Management Committee in accordance with the replacement value of the building.
Professional Liability of Real Estate Agents
Every active Real Estate Agent is obliged to maintain in force insurance coverage against his/her Professional liability towards third parties. That is, it covers the legal liability of the Insured for payment of damages in respect of claims made against him for breach of professional duty arising from the negligence, error or omission of the Insured.
Με βάση τη νομοθεσία το ελάχιστο όριο ευθύνης ανέρχεται στις €85,342.
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Professional liability insurance for insurance brokers
Like Real Estate Agents, Insurance Brokers are required to maintain in force insurance coverage against their Professional Liability.
The Insurance Limits, as defined in the Law on Insurance Operations and Other Related Matters, are:
- For each incident €1.000,000
- For each Insurance period € 1.500,000
Hospital Care Insurance for Foreign Employees
Under this compulsory insurance, every non-Community Foreign Employee must keep this insurance in force. The presentation of this is a prerequisite for the issuance or renewal of the entry and residence permit and employment in the country.
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Professional Liability Insurance for Lawyers
Based on the amendment of the Lawyers Act, the Bar Association has decided that no licence to practice will be issued or renewed unless insurance against liability for professional negligence, error or omission is provided.
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Read more about insurance:
When was insurance invented? | Why is insurance important? | How do insurance claims work? | How do insurance agents assess the risks?