Draft law/ EU entry brings changes to mandatory vehicle insurance and price increases

2026-05-12 07:23:00, Aktualitet CNA

Draft law/ EU entry brings changes to mandatory vehicle insurance and price

The Financial Supervisory Authority (AMF) has prepared a new draft law on compulsory insurance in the transport sector, which will fully approximate Albanian legislation with that of the European Union (EU).

The new law will bring very important changes, but most of them will only come into force after full EU membership.

The draft law provides for a substantial increase in the liability limit or the limit value that companies must pay for insurance events and injured persons.

The minimum liability limit to be covered by the insurance contract cannot be lower than 6.45 million euros (or equivalent value in Lek), for each accident, regardless of the number of injured parties or 1.3 million euros (or equivalent value in Lek), for each injured person.

This will mark a very large increase compared to the limits set by the current law.

According to the law in force, the current liability limit is 150 million lek for buses and trucks, 200 million lek for vehicles transporting hazardous materials, and 55 million lek for all other vehicles, respectively. Meanwhile, the liability limit for each person injured in an insurance event is 22 million lek.

Although the final limits provided for in the new law will only enter into force after EU accession, it is expected that, starting from 2027, increases above the current levels of liability limits will apply anyway, in order to make the approximation with the European Union levels more gradual. The intermediate liability limits are expected to be determined at the end of the consultation process of the draft law.

The draft law also stipulates that the contract of insurance of the liability of the user of a motor vehicle for damages caused to third parties by the use of this vehicle must cover, on the basis of a single premium and throughout the term of the contract, the entire territory of the European Union, including any period during which the vehicle is in other Member States and guarantee, on the basis of a single premium, in each Member State, the coverage required by its legislation or the coverage required by the legislation of the Member State where the vehicle is normally based, when this coverage is higher.

The increase in liability limits and the expansion of the coverage area in case of damage will understandably bring a strong increase in the compulsory vehicle insurance premium, because it will also cover liabilities for damages that may be caused outside the territory of the Republic of Albania. The TPL insurance policy will also perform the functions that the Green Card contract performs today. This change will also enter into force at the moment of full membership in the EU.

The draft law stipulates that insurance companies may use electronic systems to conclude insurance contracts with consumers, in accordance with the requirements of the relevant legislation.

The conclusion of an insurance contract by electronic means will be considered equally valid as a written contract, if the consumer has confirmed the meaning of all the information and has accepted the insurance contract. This change is expected to enter into force immediately after the adoption of the law and will not be conditional on Albania's accession to the European Union. /Monitor