Legislative Decree 184/2023 has introduced significant changes to the Private Insurance Code and the Highway Code, implementing Directive 2021/2118 of the European Parliament concerning Auto Liability Insurance (RC Auto).
Additionally, it has simplified the recognition of risk certificates between insurers from different Member States, ensuring equal treatment for insured individuals of different nationalities.
The main changes introduced by this provision include mandatory insurance, policy suspension, and insurance for light electric vehicles (e-bikes, scooters, electric microcars, etc.). However, the decree covers more than just these aspects:
- The definition of "vehicle" and "use of the vehicle" for insurance purposes has been rewritten.
- It specifies who is responsible for insurance coverage during vehicle transfers between Member States in case of car sales.
- Consap has been recognized as the official Italian Compensation Body.
- The obligation for civil liability insurance has been extended to vehicles, redefined based on their use as a means of transportation at the time of accidents.
- The insurance requirement has been extended to include non-operational vehicles.
- The decree specifies the conditions for exemptions from the insurance obligation.
- New rules on suspending the insurance obligation have been introduced.
- Insurance coverage for light electric vehicles has been mandated.
Definition of Vehicle and Use of the Vehicle
The term "vehicle" refers to mechanically powered means of transportation, considering parameters such as maximum speed and net weight.
Thus, "vehicles" are defined as "motor vehicles and any automobile operated exclusively by mechanical force that circulates on land but not on rails, with a maximum design speed exceeding 25 km/h or, alternatively, with a maximum net weight exceeding 25 kg and a maximum design speed exceeding 14 km/h."
The concept of a vehicle also includes a trailer "intended to be used with a vehicle, regardless of whether it is attached to it or not."
Regarding the concept of "use of a vehicle," it has been clarified that motor vehicles are generally intended to serve as means of transportation, regardless of their characteristics. "Use" refers to any use consistent with their function as transportation means, regardless of the terrain on which they are used and whether they are stationary or moving.
Wheelchairs intended solely for use by persons with physical disabilities, defined instead as "medical aids," even if motorized, do not fall under the definition of a vehicle.
Children's cars fall under the definition of a vehicle only if they meet the weight or speed requirements generally applicable to all vehicles. The notion of a vehicle is also extended to electric vehicles, including scooters.
Insurance Coverage During Vehicle Transfer Between Member States
When a vehicle is shipped from one Member State to another, the person responsible for liability coverage may choose between two options to identify the Member State where the risk is located: either based on the Member State of registration or the Member State of destination. This must occur from the date of acceptance of delivery by the buyer for a period of thirty days, even if the vehicle has not yet been formally registered in the destination Member State.
Consap as the Official EU Compensation Body
Consap, the Concessionary Public Insurance Services, has officially become the Italian Compensation Body in case of accidents occurring in other Member States.
It specifically handles compensating residents in Italy who have suffered damages due to accidents in other European Union Member States. Entitled parties can request compensation from Consap in specific situations, such as when the insurance company is in liquidation or undergoing equivalent procedures after the accident, regardless of insolvency status or subsequent measures.
The request to Consap must be made within two months of the accident, and Consap will have the same period to respond.
Extension of Civil Liability Insurance Obligation to Vehicles as Means of Transport
The insurance obligation is extended to all means capable of being used as transportation, according to the definition of "vehicle" and "use of the vehicle." This means that trailers intended for use with vehicles must be insured, regardless of whether they are attached. Vehicles with a different habitual function, such as forklifts or pallet trucks, are excluded.
Extension of Insurance Obligation to Non-Operational Vehicles
Decree 184 mandates insurance coverage for vehicles parked in private areas accessible to the public, even if they do not circulate on public roads or are only used in areas with restricted access.
Therefore, if a vehicle is parked and unused in courtyards or condominium parking lots, it must still have civil liability insurance coverage. Exceptions to the insurance obligation are provided for vehicles withdrawn from circulation, subject to administrative seizure, or incapable of movement due to the lack of wheels and an engine. In the latter case, the vehicle's condition must be such that it cannot be moved without using another means.
Suspension of the Insurance Obligation
The holder of an insurance policy may temporarily suspend coverage in certain situations by notifying the insurer in advance.
The suspension is activated through registration in the civil motorization database and can be extended upon formal communication to the insurance company.
The extension can be requested multiple times, with specific communications to be made within ten days before the suspension period's expiration. However, it cannot last more than ten months (eleven for historic vehicles) within the policy's validity year.
Insurance companies will be obliged to accept it. This option is designed for vehicles used only during certain periods of the year, allowing the contract to be interrupted for up to nine or twelve months.
Exemptions from the Insurance Obligation
The law establishes that all vehicles registered in Italy must be insured, but some exceptions are provided. Vehicles that do not need to pay for insurance include:
- Vehicles that no longer circulate because they are demolished, exported, or withdrawn;
- Vehicles that cannot circulate because they have been seized, stopped, or prohibited by authorities;
- Vehicles that are not operational due to missing essential parts such as the engine, whose status must be communicated to the insurance company even multiple times for a maximum period of ten months (eleven months for historic vehicles);
- Vehicles formally withdrawn from circulation;
- Vehicles with voluntarily suspended insurance coverage;
- Vehicles excluded from use as transportation means.
Insurance Obligation for Light Electric Vehicles
The decree has mandated the requirement to obtain insurance coverage for light electric vehicles. However, the obligation is awaiting a further inter-ministerial decree specifying how these vehicles will be identified for insurance purposes.
The possibility of equipping them with a specific license plate is under consideration. As mentioned, wheelchairs for people with physical disabilities are excluded from this requirement, as they are not considered vehicles and therefore do not need insurance.
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.
