Motor insurance directive: Coreper endorses provisional agreement

Monday
18:48:20
June
28 2021

Motor insurance directive: Coreper endorses provisional agreement

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The Council’s Permanent Representatives Committee (Coreper) today gave its support to the political agreement reached between the Council and the European Parliament’s negotiators during the trilogue on 22 June 2021 on the amendment to the motor insurance directive that will strengthen the protection of injured parties in motor vehicle accidents and improve the rights of policyholders.

The provisionally agreed text amends the scope of the directive, following ECJ rulings, including new definitions of ‘vehicle’ and ‘use of vehicle’. It also provides member states with new possibilities for national derogations from the insurance obligation. The use of a vehicle in motorsport events and activities will be excluded from the directive, provided that there is alternative insurance.

Moreover, bodies will be created in each member state to ensure that, if the insurance undertaking of a vehicle responsible for an accident is insolvent, injured parties can be compensated in their member state of residence; the body in that member state will then seek reimbursement from the body in the insolvent insurer’s home member state.

Likewise, the co-legislators agreed on the establishment of an EU-harmonised claims history statement and on new rules to avoid discrimination in the treatment of policyholders on the basis of their nationality or previous member state of residence.

The revised text also includes:

  1. reinforced rules regarding checks on insurance
  2. increased harmonised minimum protection amounts for personal injury and material damage across the EU
  3. targeted amendments to the framework for dispatched vehicles and provisions on accidents involving a trailer towed by a vehicle, independent motor insurance price comparison tools, information centres and information for injured parties.

Next steps

After legal-linguistic revision, the Parliament and the Council are expected to adopt the directive in the autumn. Once it has been signed and published in the Official Journal of the EU, the text will be transposed into national law within 24 months from the date of entry into force.

Source by consiliumeuropeanunion


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