Insurance in the Czech Republic

Insurance in the Czech Republic

Insurance in the Czech Republic is important for everyone, including foreigners. First, it ensures the protection of the insured as well as his or her family members. Secondly, it reduces stress ensuring difficult times. For instance, health is wealth. Therefore, if a person or rather a family member becomes sick, then everyone because stressed, and it even becomes more difficult if the rest of the family members cannot cater for his or her medical bills. Thirdly, by Czech republican taking insurance, they have assurance of enjoying financial security.

Health Insurance Czech Republic

There is both public and private health insurance in the Czech Republic. The nation is mainly based on insured individuals’ obligatory participation, and there is no possibility of participating voluntarily. The main people who are obligatory insured are Czech permanent residents and employees of the Czech Republic employers. Other individuals who are obligatorily insured are self-employed people from other European Union states and employees residing actively in Czech and covered with Czech social security legislation.

The following pays the Contributions of Health Insurance in the Czech Republic:

  • The country provides contributions for prisoners, soldiers, women on maternity leave, students, pensioners, unemployed, and individuals getting social security benefits
  • People with no taxable income, i.e. housewives, pay by themselves about 2052 CZK monthly
  • Self-employed pay 13.5% of their 50% profit.
  • The employer and the employee pay 13/5% of the employee’s gross income

About 60% of the Czech Republic population is covered with Všeobecná zdravotní pojišťovna (VZP), which is a general health insurance company. This insurance does not cover an individual visiting a private hospital. Also, it is very affordable as compared to private health insurance.

Private health insurance enables some of the citizens to overcome issues such as non-English speaking medical professionals, overworked doctors, and long wait times. The main benefits provided by health insurance include spa care, patient transport, dental care, hospital care and ambulant, diagnostic care, and preventive care.

Unemployment Insurance

Unemployed individuals in the Czech Republic get some benefits. However, one must have:

  • 12 months of work in the past 36 months
  • 6 months contributions in the past 36 months
  • Registered as a job seeker
  • Do not get an old-age pension

The period of support for the unemployed include

  • 11 months for individuals over 55
  • 8 months for individuals between 50 to 55
  • 5 months for the individuals who are under 50

The amount of unemployment benefits and retraining benefits is set as a percentage of average net monthly earnings. The benefits include:

  • 65% in the initial 2 months
  • 50% for the next 2 months
  • 45% for the remaining benefit period

Car Insurance

There are two types of car insurance in the Czech Republic, including havarijní pojištění (comprehensive insurance) and povinné ručení (compulsory insurance). Every registered vehicle in the nation should have the povinné ručení. It covers the damage to property or health caused to other individuals when operating your car.

Although according to the law, comprehensive insurance is optional. It is necessary because the compulsory only covers the third-party liability. Thus, havarijní pojištění is important as it even covers the costs of repairing the car, accident for the insured, car theft, and vandalism.

Home Insurance

As a Czech Republican, it is important to cover your house as well as its contents. Thus, home insurance protects the contents of your home. Also, it provides the opportunity of insuring the home from perils, including flood, theft, windstorm, earthquake, and overvoltage. The other damages covered include legal suits by the tenants, smoke damage, sewage backup, and snow damage.

Life Insurance

Life insurance is important as death is uncertain, and it makes the people left behind financially and emotionally depressed if they cannot have a proper send-off for their loved ones. Apart from death, it covers the insured when he or she becomes disabled and losses his source of livelihood. One may also be exempted from payment of the premium if the first two conditions are met.

Pet Insurance

Pets are part of Czech Republicans as they increase their opportunities of socializing, exercise, managing loneliness, and managing depression. Pet insurance is important as it facilitates their treatment, death, and liability caused by the insured pets. Also, the pets may be insured in case of theft, costs incurred in finding it, and costs of caring for the pet when hospitalized.

Civil liability insurance

Civil liability insurance covers two kinds of damages, including material damages and bodily injury. In the Czech Republic, the insurance covers the residents if they cause damage to another person’s animals, items, and health when engaging in common activities. The cost ranges from CZK 125, and it applies to the rest of the household members.

The insurance covers one when in the Czech Republic as well as other European nations. The children of the insured are usually covered until they reach the age of 25 years old.

Popular insurance companies in Czech Republic

  • Allianz insurance company
  • Atradius Crédito y Caución S.A. de Seguros y Reaseguros, pobočka pro Českou republiku
  • Colonnade Insurance S.A., organizační složka
  • Česká podnikatelská pojišťovna, a.s., Vienna Insurance Group
  • ERGO pojišťovna, a.s.
  • Exportní garanční a pojišťovací společnost, a.s.
  • Kooperativa pojišťovna, a.s., Vienna Insurance Group
  • NN Životní pojišťovna N.V., pobočka pro Českou republiku
  • Pojišťovna VZP, a.s.
  • UNIQA pojišťovna, a.s.
  • VIG RE zajišťovna, a.s.
  • YOUPLUS Životní pojišťovna, pobočka pro Českou republiku