What happens if a vehicle's owner fails to take out obligatory motor liability insurance?

The consequences of failing to insure one's vehicle become more severe as a result of the new law:

• uninsured vehicles are not allowed on the road
• the police is able to immediately remove an insured vehicle's registration plates
• those failing to insure their vehicle may be liable to pay a penalty fee in addition to the insurance premium, which may be many times larger than the original premium.
  
  

The size of the penalty fee is affected by the period of time the vehicle has been uninsured, whether the failure to insure has been deliberate and repeated as well as whether the vehicle has been driven in traffic. The penalty fee for failing to insure is raised in the new law.

Why are the consequences of failing to insure becoming more severe?

Damage caused to an innocent party by an uninsured vehicle is paid out from a common fund, which means that other policy holders ultimately have to pay for that damage. The better vehicles are insured, the less we have to pay for damage caused by others.