Georgia may adopt a system of compulsory civil liability insurance for car owners. Such a provision is provided for in the Government's short-term plan of legislative actions for the autumn session of the year 2026, which the Government has submitted to Parliament.

As mentioned in the plan, solving the problem of large costs incurred in road traffic accidents can only be systematized through a proper study. Years of research and best practices followed in many countries have shown that the most rational approach is to introduce compulsory third party motor vehicle liability insurance.

This decision was dictated by the high number of traffic accidents on the roads in Georgia, which has become quite a common phenomenon recently. The insurance specified in the plan provides the accident victim with a guaranteed and legal right to compensation, regardless of the fact that the accident was caused by an insured vehicle, or there is no such person insured, or this person has not been identified.

"In order to implement this effective social security system each owner of the vehicle is to be bound to have an insurance contract with the insurer and to pay some premium amount. This system aims at achievement the widest possible scale of the market together with the correspondent increase, which can be achieved only at the highest degree possible participation of all road users."

The Georgian government acknowledges that Georgia fulfills its obligations in the process of approaching national legislation with the European.

"On the ground of the Association Agreement between Georgia, on the one part and the European Union, the European Atomic Energy Community, and its Member States, on the other part, Georgia commits its legislation to approximate with EU legislation and to adopt regulations to the EU directive on civil liability insurance for road vehicle use and on compliance therewith" The document reads.

Written by

Lakshya