Obligation to pay the third-party vehicle insurance fee for a non-operated vehicle

The Constitutional Court of the Czech Republic issued an interesting decision on 31st March 2014 concerning the duty of vehicle’s owner to pay the third-party insurance fee for a non-operated vehicle (judgment of ref. No. IV. US 2221/13). 

The subject-matter of the litigation was an action for the payment of the third-party insurance fee for a non-operated vehicle pursuant to the provision of Sec. 24c para. 1 of Act No. 168/1999 Coll. (Third-party Vehicle Insurance Act) which was filed by the Czech Insurers’ Bureau against an owner of such a vehicle. This fee is to be paid if a vehicle is operated without the third-party vehicle insurance paid. 

The Czech Insurers’ Bureau claimed a payment for the fee for the period for which the vehicle was operated without the third party vehicle insurance being paid. The owner of the vehicle opposed that the vehicle had not had a valid proof of vehicle inspection in that time and due to the technical condition of the vehicle, it had not been possible to operate it. The Czech Insurers’ Bureau did not find these arguments sufficient enough to exempt the vehicle’s owner from his duty to pay the fee.

The Constitutional Court of the Czech Republic concluded that if the vehicle was not in operation, the owner of the vehicle was not under the obligation to pay the fee to the Czech Insurers’ Bureau pursuant to the provisions of Sec. 24c para. 1 of Act No. 168/1999 Coll.