Art. 74 par. 3 lit. a of the Swiss Road Traffic Act (SVG) and art. 44 of the Swiss Road Traffic Insurance Ordinance (VVV) provide the legal bases of the Swiss Frontier Insurance. Details of the insurance are set out within the frontier insurance regulations issued by the Executive Committee of the Swiss National Bureau of Insurance (NBI) by virtue of statutory delegation (art. 3 par. 1 bst. c. of the statutes of the NBI).
Vehicles entering Switzerland or the Principality of Liechtenstein without sufficient motor third party liability coverage (art. 44 VVV) must conclude a frontier insurance. This includes vehicles registered in countries that did not sign the multilateral agreement (the so-called registration plates convention) or vehicles not being able to present a valid Green Card upon entry into Switzerland or the Principality of Liechtenstein. The same applies to foreign motor bikes.
The frontier insurance covers liability damages of the vehicle owner and the persons he/she is responsible for or, in other words, the third party liability of those persons responsible in accordance with the law in the country of accident for at least one or six months. A frontier insurance policy is renewable within the limits of Swiss customs regulations. The territorial coverage includes Switzerland, the Principality of Liechtenstein and 30 EEA countries. The contractual cover corresponds to the minimum amounts of cover in the country visited.
Zurich Insurance Company supplies a frontier insurance with coverage in EEA countries and Switzerland at its own risk and on behalf of the NBI since 1.1.1997. Zurich reports annually on business activities and submits any premium adjustments, changes in tariff headings or in the general terms and conditions as proposals to the Executive Committee of the NBI, who forwards the proposals to the Swiss Financial Market Supervisory Authority FINMA for approval. Zurich is in charge of the claims settlement in Switzerland and in the Principality of Liechtenstein.