Car insurance validity in the EU – Cyprus
Third party motor insurance
When you move temporarily to Cyprus from another EU country (as a student, pensioner, second home owner, cross-border commuter), your existing motor insurance policy from another EU country is still valid for the period it was signed for.
You can use your existing motor insurance policy, even after moving to Cyprus (once officially registered as a resident) from another EU country, for as long as the vehicle is registered in another EU country.
The risk-assessment scheme typically used by vehicle insurers in Cyprus is based on the following criteria.
Each insurance company is free to decide according to its underwriting practices whether or not to use the bonus malus system. The same principle applies for the No Claims Discount system. Insurance rates are not regulated and insurance companies in Cyprus follow a free pricing regime. It is also worth noting that some insurance companies offer ‘No Claims Discount Protection' at an extra premium.
If you are an EU national, insurers in Cyprus are not required by law to recognise your no-claims history in another EU country and factor this into your premium.
Documents issued in another EU country relating to no-claims history can be accepted under the certain conditions. In most cases for certificates to be accepted, they must be issued and signed by the insurance companies and bear the original company official stamp (unless sent from the Insurance Company's fax number). Most Cypriot Insurance Companies will not accept certificates issued by intermediaries/brokers.
The certificates mentioned above should contain the following information:
- name of the insured person / Identity card number / company registration number
- policy number
- vehicle registration number
- period for which the person/ company was insured
- type of cover
- date of any accidents
- claims paid / outstanding
- whether the damages were Third Party damages and/or Own damages
- whether the insured is entitled to a "No Claims Discount".
How do I submit a complaint to an Insurance Company
If you have a complaint concerning the way an insurance company in Cyprus handled a matter that concerns you, we advise you to follow the following procedures, in order to speed up its investigation.
Obtain an appropriate complaint form from the local offices of your insurance company, or your insurance intermediary or from the company's web page. Alternatively, you may submit a complaint by sending an email, letter by post or fax. Make sure that your complaint is sent and addressed to the officer/unit of the insurance company that deals with complaints handling. It is also possible to submit your complaint by phone; for that you simply need to contact the officer/unit of the insurance company that is responsible for complaints handling.
We advise that whichever way you choose for submitting your complaint, you provide a precise description of it, give as many details and information as possible and do not forget to also provide your Insurance Policy Number. We also advise that if you are communicating your complaint to the insurance company orally, you take a note of the name of the officer you spoke to, as well as the date/time the conversation took place. We also remind you that at any point in time you have the right to be informed about the stage of the investigation of your complaint simply by contacting the complaints handling officer/unit.
Once you complete the procedure described above, and provided that you are not satisfied with the result, you have the option to submit your complaint to the Financial Ombudsman (tel. 00357 22 848900). You also maintain your legal right to take legal action against the company at any time.
If you do not agree with an insurance payout or any other decision taken by your insurer, you can contact the Financial Ombudsman of the Republic of Cyprus. The Financial Ombudsman provides an alternative dispute resolution service for complainants who submit a formal complaint against a financial business, including an insurance company, provided that their complaint relates to a financial dispute between the parties. You can submitting an enquiry or a formal complaint at email@example.com or firstname.lastname@example.org.