Motor Third-Party Liability Insurance (Kfz-Haftpflichtversicherung)
Motor third-party liability insurance is the statutorily mandated insurance that covers bodily injury, property damage, and financial loss suffered by third parties caused by the operation of a motor vehicle.
Comparison profile
- Trigger
- Occurrence
- Insured interest
- The keeper's and driver's legal liability for bodily injury, property damage, and resulting financial loss suffered by third parties through the operation of the insured motor vehicle.
- Rating basis
- Vehicle type, engine power, and weight class, Regional/cantonal risk zone, No-claims class (bonus-malus), Driver age and experience, Annual mileage
- Typical limits
- Statutory minimum sums insured are set by law and topped up almost universally to voluntary limits of CHF/EUR 100 million or more per event for bodily injury and property damage combined.
- Typical deductibles
- Claims to the injured third party are settled without a deductible; insurers may apply an internal recourse deductible against the policyholder for gross negligence or unauthorised drivers.
- Target segments
- Private, SME, Industry, Multinational fleets
Insured events
- Bodily injury to third parties (pedestrians, cyclists, other road users)
- Property damage to third-party vehicles or property
- Pure financial loss consequential to an insured bodily injury or property damage claim
- Accidents caused abroad, settled through the Green Card system
- Passenger claims against the driver where the driver is at fault
Key exclusions
- Damage to the policyholder's own insured vehicle
- Intentional damage caused by the driver
- Use in races or speed trials covered by a dedicated motorsport policy
- Claims by the keeper against persons for whom the keeper is liable
- War, confiscation, and nuclear energy
Compulsory insurance
- CH: SVG Art. 63 (Motorfahrzeug-Haftpflichtversicherung – no vehicle may be registered before liability cover is in place)
- EU: Motor Insurance Directive 2009/103/EC sets minimum compulsory sums insured, transposed into national law by member states
Concept
Motor third-party liability insurance is a statutorily mandated compulsory insurance in almost all jurisdictions that covers claims for damages brought by third parties arising from the keeper’s and driver’s liability in connection with the operation of a motor vehicle. It therefore primarily protects the interests of injured third parties rather than the policyholder itself.
Scope of Cover and Minimum Sums Insured
The scope of cover extends to bodily injury, property damage, and resulting financial loss. To ensure a uniform minimum level of protection across Europe, EU directives set minimum sums insured, which member states transpose into national law; many insurers also offer significantly higher limits as a voluntary extension.
Green Card and International Protection
For cross-border traffic, the international Green Card system serves to provide proof of valid motor liability insurance abroad and to coordinate claims handling for accidents occurring abroad through national compensation bodies.
Comparison and delineation
Motor third-party liability insurance is the compulsory core of motor insurance and settles only claims brought by third parties; it does not indemnify the policyholder for damage to their own vehicle or for their own injuries. It is therefore regularly complemented by comprehensive motor insurance, which covers own-damage perils such as theft, fire, and collision, and by passenger accident insurance, which closes the gap left when the driver is at fault and has no liability claim of their own. Together, the three covers form the standard motor insurance package for private and commercial vehicle owners.