As of June 1, vehicle owners in Greece will be required to insure their automobiles against natural disasters such as forest fires, earthquakes, and floods. Entrepreneurs with businesses exceeding €500,000 in annual turnover will also be obligated to secure insurance coverage against these calamities.
The new insurance mandate for vehicles will be based on their current market value, including those that are immobilized. For businesses, the insurance must cover various aspects including buildings, equipment, raw materials, and merchandise. Commercial vehicles, production means, and stored products will also fall under the mandatory insurance requirement.
Businesses already insured against natural disasters are considered compliant with the new regulations. However, those failing to obtain insurance will face significant penalties. A fine of €10,000 will be imposed if insurance is not secured by the deadline, increasing to €20,000 if the business remains uninsured 30 days later. Moreover, uninsured businesses will be ineligible for state aid or housing assistance should they suffer damages from natural disasters.
This legislative move aims to enhance preparedness and resilience among vehicle owners and businesses against the backdrop of increasing natural disasters. By making insurance coverage mandatory, the Greek government seeks to mitigate the economic impact of such events on individuals and businesses.
