On December 5th, 2024, Law 5162/2024 was published, introducing significant amendments to Law 5116/2024 concerning mandatory insurance against natural disasters.
The amendments are two-fold: On the one hand the scope of mandatory insurance against natural disasters is extended to include smaller-scale businesses, while, on the other hand, mandatory private insurance against natural disasters is introduced for the first time for private-use vehicles.
More particularly, with respect to businesses:
- Private insurance covering the risks of forest fire, floods and earthquakes will be mandatory for businesses with gross revenue exceeding the amount of €500,000 annually (down from the previous threshold of €2,000,000);
- The insurance policy shall cover damages to building facilities as well as other assets of the business, including equipment, raw materials, goods, trucks and commercial vehicles, production machinery, and stored products. The policy shall cover at least 70% of the total value of assets;
- A fine shall be imposed on businesses that do not comply with the insurance requirements. If the obligation is not met, an administrative fine of €10,000 shall be imposed on the business; in the event of non-payment within thirty (30) days the fine will be doubled; and
- Businesses falling within the scope of the law will be excluded from any government aid concerning damages to assets listed above caused by forest fire, floods and earthquakes.
With respect to vehicle insurance against natural disasters:
- Mandatory insurance for natural disasters (forest fires and floods) is established for vehicles based on the vehicle's market value. The insurance must remain in effect continuously from the issuance of the license and license plates, regardless of the vehicle's actual use or operation;
- This obligation is subject to the following exceptions:
- in case the vehicle is owned by the state or entities of the public sector; or
- any exceptions to be specified through the issuance of a joint decision of the Ministers of National Economy and Finance, Development and Climate Crisis and Civil Protection (which will also provide the particular extent of coverage conditions).
The above amendment shall take effect on June 1st, 2025.
The full text of the Law can be found here: https://search.et.gr/el/fek/?fekId=774436
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
