Motor Vehicles Insurance

Motor Vehicle Safety

In Cyprus motor third party insurance is mandatory by law and provides the necessary cover for the liability of the insured and the authorized drivers who are holders of a appropriate driver's license to pay compensation for the death or physical injury of any person or material damage to property.

Against Third Party (By Law)

This Law shall be referred to as the Motor Vehicles (Third Party Liability Insurance) Laws of 2000 to 2010.

Driving license means a motor vehicle driving license issued under the provisions of the Motor Vehicles and Traffic Law.

Motor vehicle means any self-propelled vehicle intended to move to the ground by mechanical force or electric power, not running on tracks and including a trailer connected to or not with the main motor vehicle, but does not include wheelchairs and lawnmowers.

It should be noted here that the legislation also provides for the liability of the licensee always driving the motor vehicle beyond the road (road means any street, road, square, path, open space and any space to which the public has access).

The minimum coverage limits set by legislation are as follows:

Personal injury or death, including costs and interest, of a total amount over thirty million (€ 30,000,000) per incident, regardless of the number of claims arising from or in connection with this incident.

 Also, damage to property, including expenses and interest, totaling more than € 1 million (€ 1,000,000) per incident, regardless of the number of claims arising from or in connection with this incident.

It should be emphasized here that the driver during the driving time (during the time he has control over the motor vehicle) is not considered a third person and hence is not compensated by the insurance policy against a third party if and when he is responsible for the accident.

In addition to the statutory coverage, the policyholders have the additional option of other more comprehensive insurance policies, which are described generally below.

Against Third Fire & Theft
It includes legal cover against third party and extra coverage in the event of a fire (including malicious) or theft of the insured vehicle.

It includes legal coverage against Third party, in addition the Fire & Theft but also coverage of the vehicle's current value in the event of damage to the insured vehicle.

Comprehensive coverage with extra coverage and limits

It includes comprehensive coverage with increased coverage limits as well as coverage of natural hazards.