Of Chrysostom Chufi

The arrival of June brings up to the insurance market as vehicles are required to insurance for natural disasters, namely floods and forest fires.

According to the Association of Insurance Companies of Greece and to inform the owners:

  • Insurance will be done on the basis of the current commercial value of the vehicle
  • The obligation to insurance for natural disasters also applies to vehicles that have been submitted and have been placed in administrative immobilization as well as they remain exposed to natural phenomena.

“Obligation” has to do with the fact that under the new law, insurance debtors will be excluded from any state aid grant for vehicles that have not been insured against natural disasters.

All new contracts from June 1 will have these three additional covers. Someone who has a contract that runs can contact their insurer and modify their contract on June 1st. Otherwise it can wait until its expiration, so new coverage will be foreseen in its renewal or new contract.

For a cover chapter 10,000 eurosit is estimated that the extra cost will be in the area of ​​8 euros with 10 euros.

From the new context are excluded Only the vehicles belonging to the public or public sector bodies. Exception to the exemption for the vehicles of Local Government Organizations which are subject to compulsory insurance.

From June 1, 2025, the framework for compulsory insurance against natural disasters and businesses has also changed. Businesses with a turnover of more than € 2 million currently has this obligation, in about 2 weeks this limit fell to 500,000 euros.

These companies are required to have an insurance policy covering damage from fires, earthquakes and floods at least 70% of the value of their assets. The coverage obligation concerns privately owned installations, equipment, raw materials, goods, means of production, business vehicles and stored products. Here the “obligation” is a real obligation as uninsured companies in addition to being excluded from state aids are at risk of 10,000 € fined.

The Association of Insurance Companies of Greece recommends businesses:

♦ Contact their insurance company or their mediator to select an appropriate insurance plan.

♦ If they already have a contract, to confirm that the coverage meet the requirements of the law.

♦ To consider whether the 70% coverage responds to the actual needs of the business to avoid the risk of undercover.