In January 2003 the EU Fourth Motor Insurance Directive was implemented, laying down “special provisions applicable to injured parties entitled to compensation in respect of any loss or injury resulting from accidents occurring in a Member State other than the Member State of residence of the injured party which are caused by the use of vehicles insured and normally based in a Member State.”
The Fourth Directive and other Motor Insurance Directives now form part of the Codified Directive 2009/103/EC.
The Fourth Directive required the setting up of an Information Centre (in the UK this is the UK Information Centre at MIB) and a Compensation Body (also MIB).
The Information Centre is responsible for keeping a register of motor vehicles normally based in the country. In the UK, the register used is the MID – allowing the Information Centre to quickly identify the insurer of a UK vehicle by its registration number.
The Information Centre is responsible for maintaining a list of all Claims Representatives in each EU country for each UK Insurer. The Information Centre facilitates cross-border claims by taking enquiries from UK victims about EU vehicles, and enquiries from EU victims about UK vehicles, communicating with all the corresponding Information Centres in the EU/EEA.
EU Motor Insurance Directives
The Fourth Directive was introduced to make it easier for those injured in accidents whilst visiting another EU state to receive compensation by:
– Requiring there to be an Information Centre who can identify the insurer of the other party from the registration plate;
– Allowing the injured party a direct right of action against the insurer;
– Requiring the insurer to nominate a representative in the injured party’s own country who has sufficient powers to settle the claim;
– Ensuring that there is a compensation body to pay the claim in the event that the insurer cannot be identified or is manifestly dilatory in settling a claim.
The Fifth Directive came into force on 11 June 2005 and was implemented in the UK on 11 July 2007. It covers:
– Compensation for victims where vehicles have false or no registration plates
– Compensation for victims where the vehicle was not required to be conventionally insured
– Increased minimum legal cover for third party personal injury and property damage insurance
– Claims to be allowed for property damage in cases of unidentified vehicles causing significant personal injury
– Removal of the “excess” for property damage caused by uninsured vehicles
– Liability towards pedestrians and cyclists
– Insurance for stays abroad
– Insurance for imported vehicles
– Right to ask for a statement of claims experience
– Direct right of action against insurers for domestic victims
– Role of information centres
The Codified Directive came into force on 27 October 2009, relating to insurance against civil liability in respect of the use of motor vehicles, and the enforcement of the obligation to insure against such liability – and effectively combines and replaces all previous Motor Directives.
The measures introduced by the Directives complement the arrangements of the Green Card system which ensures the ready settlement of claims in the injured party’s own country where the other party comes from a different country.
So if I am in an accident, what help can I get?
If in an accident
For seven years after the accident, you have the right to request from either
– The information centre in your home state, or
– From the information centre where the other party’s vehicle is based, or
– From the information centre of the state in which the accident occurred the following information:
– The name and address of the insurer
– The number of the insurance policy
– The name and address of the insurer’s claims representative in your home state
– The name and address of the registered keeper (in special cases)
In the UK, for UK vehicles, this information is supplied by the UK Information Centre at MIB, and some of the information is obtained from the Motor Insurance Database (MID),
How long will it take for an insurer to pay a claim?
This depends on the complexity of the individual claim. However, the insurer of the party that caused the accident or their claims representative is required to make a reasoned response or offer within 3 months of the claim being presented. This will be regulated, for UK insurers, by the FSA. Moreover, interest will be payable on any settlement unnecessarily delayed beyond 3 months.
What about the privacy of my information on MID?
The directive requires data protection to take precedence over the implementation of the directive. MIB has regular meetings with the Information Commissioner to ensure that the Data Protection Act is complied with fully. MIB will not disclose the personal details of policyholders or registered keepers where the insurer has been identified and is dealing with the claim. Should a vehicle not appear on the MID, MIB will consider whether an enquirer needs the personal details of the registered keeper in order to pursue a claim for compensation.
Source : The MIB
