New insurance obligations for forklift trucks, pallet trucks and agricultural machinery: what is required by Law 5/2025
Compulsory insurance 2025. Since the Law 5/2025 (reform of the LRCSCVM), it expands on what is considered to be motor vehicle and when there is a “fact of circulation”. In practice, many forklift trucks (mechanical forklifts) and some agricultural/industrial machinery now require compulsory liability insurance., even if operate on private premises. In addition, there is a transitional period of 6 months to adapt.
What exactly has changed with Law 5/2025?
Extended definition of “motor vehicle”vehicles exceeding 25 km/h, or more than 25 kg and maximum speed above 14 km/h are included. This catches a lot of self-propelled warehouse and agricultural machinery.
“Circulation fact”.”The use of a vehicle on a public road, even if it is not on a public road, regardless of the terrain and whether it is stationary or in motion. In other words, use in warehouses, estates, industrial estates or enclosed areas may give rise to liability covered by compulsory insurance.
The prior requirement is removed (of the 2008 Regulation) to have administrative authorisation to drive in order for the insurance obligation to apply. .
Who is affected? Case studies by type of equipment
Forklift trucks (mechanical bulls)
Normally >25 kg and >14 km/h, so they fall under the definition and must have compulsory CR insurance. Applies, even if they work only inside the warehouse or yard.
Electric pallet trucks
Many powered pallet trucks weigh >25 kg, but their maximum speed is usually below 14 km/h.
If they do not reach >14 km/h, they would not be included as a “motor vehicle” by Law 5/2025; in that case, the company's General Liability would have to assume possible damages to third parties (it is advisable to review limits and exclusions).
If they exceed 14 km/h and >25 kg, then they would be motor vehicles and would require compulsory insurance (technical-legal criterion by weight/speed thresholds).
Agricultural machinery (tractors, self-propelled trailers, combine harvesters, ATVs, etc.)
If the equipment meets the thresholds of the definition (speed/weight), compulsory insurance is required, even if it only travels on farms or internal roads. In many cases there was already an obligation if they were on public roads; now the compulsory cover is extended to include the concept of fact of circulation out of it.
Deadlines, penalties and transitional period for compulsory insurance 2025
Adaptation period: vehicles becoming “motor vehicles”.” have 6 months from the day following publication in the BOE (published on 24/07/2025).. As a guideline, the period would end around 25/01/2026. During this period there are no penalties for lack of insurance, but they count as uninsured and the Consortium could repeat against the causer if there is fault or malice.
After the period: the sanctioning regime of art. 3 LRCSCVM applies to circulate.
Quick FAQs
Does my electric pallet truck need compulsory insurance?
Depends on weight and maximum speed. If >25 kg and >14 km/h (or >25 km/h) → yes. If at 6-8 km/h, it would not be motor vehicle and it would be sufficient to strengthen the General CR (check exclusions).
What if my forklift only operates inside the warehouse?
The obligation also applies off the public highway for the concept of fact of circulation.
When does the grace period end?
6 months from the day after publication in the BOE (approx. 25/01/2026).
If you manage warehouses, logistics or agricultural operations, it is in your best interest to audit your machinery and take out/adjust policies before the deadline. PIB Group Iberia will help you to do so. Click here so that we can contact you. You can also visit us at any of our OUR OFFICES in Spain or Portugal and we will be delighted to help you and provide you with the best personalised advice.
