Fourth motor insurance directive

New legislation comes into force on 19 January to implement the Fourth Motor Insurance Directive. This new system is to benefit UK residents visiting the European Economic Area (EEA). In 2000 over 14 million UK residents visited the EEA of whom 6,000 pursued claims for motor accidents.

The Directive requires the UK, and other States in the EEA, to implement provisions making it easier for residents of the UK and other states in the EEA to pursue an insurance claim if they have a motor accident in an EEA State other than their state of residence.

To achieve this the UK has approved an information centre which will establish a means of access to information about the insurers of all motor vehicles normally based in the UK. The Motor Insurers’ Information Centre is appointed as the UK information centre.

Where it is not possible to establish the insurer of a vehicle, arrangements have been made for accident victims to claim in certain circumstances from a compensation body, for loss or injury. The Motor Insurers’ Bureau is appointed as the compensation body.

The UK has also made provisions requiring relevant insurers to appoint a claims representative in each EEA state other than the UK. These representatives will be responsible for handling and settling claims arising from accidents covered by the Directive. They will collect all the necessary information relating to a claim; and take appropriate action to settle the claim, including paying compensation.

The Directive creates a direct right of action against the insurer of the person responsible where a claimant is involved in a motor accident in an EEA state other than their state of residence. This will give a claimant the option of taking action against the insurer rather than the driver allegedly responsible for the accident.

The Government has decided also to provide in certain circumstances for UK residents involved in motor accidents in the UK to have a direct right to issue proceedings in the courts against the insurer of the person responsible. This will ensure that UK residents have the same right to issue proceedings against the insurer as residents of other EEA states when they are injured in motor accidents in the UK.

The Directive will be implemented through legislation from the Department for Transport, Lord Chancellor’s Department and HM Treasury, and rules and guidance from the Financial Services Authority.

Notes to editors

Background

1. The Fourth Motor Insurance Directive came into force in the Community on 20 July 2000 (and throughout the EEA on 1 September 2001). Member States were required to have implementing provisions in force by no later than 20 January 2003.

2. The Directive applies throughout the European Economic Area, which comprises the fifteen Member States of the European Community plus Norway, Iceland and Liechtenstein.

3. Government consulted on the implementation of the Directive. Consultation ran for three months and closed on 17 July 2002.

4. Government’s post-consultation report can be found at this site.

5. UK residents who have had a motor accident elsewhere in the EEA can now contact the Motor Insurers’ Information Centre (tel: 08702 416732, E-mail: MIIC

6. For further information on the MIIC.
7. For information on the Motor Insurers’ Bureau .

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Legislation

8. UK legislation implementing the Fourth Motor Insurance Directive can be found at:

Department for Transport

Road Traffic: The Motor Vehicles (Compulsory Insurance) (Information Centre and Compensation Body) Regulations 2003

Lord Chancellor’s Department

European Communities (Rights against Insurers) Regulations 2002

HM Treasury

The Financial Services and Markets Act 2000 (Fourth Motor Insurance Directive) Regulations 2002

The Financial Services and Markets Act 2000 (Variation of Threshold Conditions) Order 2002

Financial Services Authority

The Fourth Motor Insurance Directive Instrument 2002 is available below in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website.

For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.

PDF file of Fourth Motor Insurance Directive Instrument 2002

Enquiries

9. Media enquiries about the information centre and compensation body should be directed to the Department for Transport press office, tel: 0207 944 3066

10. Media enquiries about the direct right of action in the courts should be directed to the Lord Chancellors Department press office, tel: 0207 210 8721.