Frontier Insurance’s term historically derives from place where it most often used to incept and such place was the road border crossing. These days Frontier Insurance is generally concluded inland for a period of prolonged staying of foreign vehicle in the territory of the Czech Republic after the expiry of validity of preceding motor third party liability insurance valid in the Czech Republic. Rarely the vehicle can be transported inland as ware. Inland Frontier insurance must be concluded before inception of operation of such vehicle on publicly terrestrial communication.
Obligation to conclude the frontier insurance is applied to drivers of foreign vehicles, whose liability insurance in the territory of the Czech Republic is not guaranteed by the insurers’ bureau of a foreign country, or more precisely to drivers of foreign vehicles, who are not in possession of a valid green card issued by an insurance company in a foreign country.
The Czech Insurers’ Bureau is the insurer authorized for the frontier insurance in the Czech Republic and the law allows only one possibility to conclude frontier insurance contract – by paying insurance premium.
The frontier insurance applies to those loss events caused by operation of a foreign vehicle that occurred in the territory of the Czech Republic or in the territory of another European Union Member state or another European Economic Area state or in the territory of Switzerland.