MEPs agree further motor insurance protections in EU

Changes to motor insurance rules to provide better protection for road accident victims, and tackle uninsured driving in the EU, have been approved by MEPs on the Internal Market Committee of the European Parliament.

The proposals aim to close loopholes and improve the current Motor Insurance Directive in five areas: compensating victims of accidents where an insurer goes bankrupt; minimum amounts of cover; member states’ checks on vehicle insurance; how claims history statements are used by a new insurance company; and the scope of the directive.

They aim to protect victims of accidents in EU member states other than that of their residence, and domestic victims of an accident caused by a driver from another EU country.

Victims of accidents caused by a vehicle insured with an insolvent company may currently be left without compensation or suffer payment delays. The new rules require national compensation bodies to meet costs arising from claims where the liable party’s motor insurer is insolvent. Victims will be entitled to compensation in a maximum period of six months.

In order to ensure the same minimum level of protection for victims, the proposal harmonises obligatory minimum amounts of cover across the EU, without prejudice to any higher guarantees which member states may prescribe:

• for personal injuries: €6,070,000 per accident, irrespective of the number of victims, or €1,220,000 per victim;
• for damages to property: €1,220,000 per claim, irrespective of the number of victims.

Cross-border insurance checks on vehicles will be allowed in order to tackle uninsured driving. Regarding claims history, the proposal seeks to ensure that insurance firms handle claims in a non-discriminatory manner, irrespective of nationality or previous EU country of residence of a citizen.

E-bikes, segways and electric scooters are excluded from the scope of the directive, since they are “smaller and are therefore less likely to cause significant damage to persons or property”. It will be up to member states to decide at national level how to protect parties potentially injured by these vehicles.

Vehicles intended exclusively for motorsports are also excluded, as they are generally covered by other forms of liability insurance and are not subject to compulsory motor insurance when they are solely used for a competition.

The proposal as adopted is due to be voted on by the full Parliament during the 11-14 February plenary session. The text would then still need to be agreed with the Council before becoming law.