CZECH REPUBLIC Law and Practice Contributed by: Eva Nováková, Michaela Šmotková, Martin Sztefek and Kateřina Chizzola Bardonová, JŠK, advokátní kancelář, s.r.o.
Insurance benefits may be claimed from the insurer at any time within the limitation period. The limitation period is three years and ten years for life insurance. This limitation period (subjective) normally begins to run when the subject becomes aware of certain aspects of the legal relationship (for example, in the case of a claim for damages, knowledge of at least the approximate amount of the damage and, at the same time, knowledge of the person responsible for causing the damage). The subjective limitation period is also limited by the objective limitation period, which, regardless of the knowledge of the entitled party, expires no later than ten years after the occurrence of the damaging event. A specific characteristic of insur- ance is that the limitation period begins one year after the insured event. However, the limitation of the claim for insurance benefits consisting of liability insurance shall occur at the latest upon the limitation of the right to compensation for damage or injury covered by the insurance. The case may be initiated even after the limitation period has expired, but it will be dismissed after an objection of limitation has been raised. The person entitled to claim insurance benefits (ie, typically the insured person and, in the case of life insurance, the beneficiary, but in the above-mentioned cases also the injured party) may bring an action for insurance benefits at the earliest once they have been notified that the investigation has been concluded and that the claim has been refused, reduced, or, in the case of indemnity insurance, assessed at a lower amount than they consider justified. The investiga- tion must be completed within a reasonable period of time, which is considered to be three months, and, if necessary, within a further reasonable period following the removal of the reasons preventing its completion within that timeframe. If the person claiming the insur- ance premium considers the length of the investiga- tion of the insured event to be too long, they may also sue the insurer for insurance benefits. 9.2 Insurance Disputes Over Jurisdiction and Choice of Law The applicable law and jurisdiction in the Czech Republic are governed primarily by European regula- tions. In the area of international jurisdiction, this is EU Regulation 1215/2012 (Brussels I bis Regulation), and in the case of applicable law, EC Regulation 593/2008
(Rome I Regulation). Czech legislation, which applies in situations where European regulations do not apply (for example, in the case of reinsurance), is contained in Act No 91/2012 Coll. (Act on Private Law). The choice of law is generally possible in insurance law, although it is limited in consumer contracts (by Article 6 of the Rome I Regulation and by Section 86 of the Act on Private Law). The choice of law is also limited in general when the parties cannot choose any law but must choose the law connected to the insur- ance contract in the manner stated in Section 6 (2) of the Rome I Regulation. The Czech Republic is also party to certain interna- tional conventions. Most important in this respect is the Hague Convention on the Law Applicable to Traffic Accidents. 9.3 Litigation Process The litigation process begins when the person entitled to claim insurance benefits disagrees with the findings of the assessment of the claim and decides to take the case to court (unless they choose one of the ADR methods described in 9.7 Alternative Dispute Reso- lution ). The first step for such a person is to send a pre-litigation notice to the insurer. If the pre-litigation notice is not delivered to the insurer at least seven days before the action is brought and there are no valid reasons for not sending it, the plaintiff cannot recover litigation costs from the insurer, even if they are fully successful in the case (however, there are exceptions to this rule). Once the lawsuit has been filed and the court fee has been paid, the court will deliver the documents to the insurer as the defendant and at the same time give it the opportunity to respond within a specified period. Failure to meet this period will result in an automatic loss by default judgment. The subsequent court proceedings serve to examine all evidence and hear the arguments of both parties of the dispute. All claims must be supported by evidence by the time the proceedings are concentrated (usually by the end of the first hearing). Expert opinions and expert statements often play a key role, as without
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