Car insurance becomes mandatory for both flood and fire.

Specifically, in today’s post on the website of the Athens Chamber of Commerce, the following are mentioned:

“With the provisions of Law 5162/2024, it is defined as mandatory to insure cars also against natural disasters, i.e. against the risks of fire due to natural causes and flood

The relevant provisions are as follows:

Law 5162/2024 – Official Gazette Issue A 198/05.12.2024 Measures to boost income, tax incentives for innovation and business transformations and other provisions

Article 26 Insurance of vehicles against natural disasters – Addition of Article 5A and par. 2A in article 47 of n. 5116/2024

1. In n. 5116/2024 (A΄ 100) article 5A is added as follows:

“Article 5A Vehicle insurance against natural disasters

1. The owner or owner of a vehicle within the meaning of c. a) of article 1 of p.d. 237/1986 (A΄ 110), with a place of usual parking in Greece, in addition to the insurance obligations according to the above presidential decree, is obliged to cover his vehicle with insurance against the risks of forest fire and flood, based on the current market value of the vehicle. The insurance obligation exists continuously from the granting of the license and registration plates, without depending on the actual movement or operation of the vehicle.

2. The insurance obligation herein does not apply, if the vehicle is owned by the State or a public sector body, as defined in c. a) of par. 1 of article 14 of n. 4270/2014 (A’ 143), excluding the OTA sub-sector.

3. Those obliged to insure hereunder are exempted from any state aid grant for the vehicles that have not been insured in accordance with par. 1.”

4. In article 47 of n. 5116/2024, on authorizing provisions, added par. 2A, as follows:

“2A. By joint decision of the Ministers of National Economy and Finance, Development and Climate Crisis and Civil Protection, the scope and conditions of insurance may be specified, additional exceptions may be introduced, the procedure and supporting documents for the exception may be regulated and any other matter related to the application of Article 5A.”

According to the estimates of tax experts, the insurance for natural disasters will burden insurance companies with several extra euros per year.