Motor vehicle insurance: scope of cover

The Consolidated Motor Insurance Directive, European Parliament and Council Directive 2009/103/EC, requires insurance to be taken out in respect of death, personal injury and property damage arising out of motor vehicle accidents. The Directive allows member states to restrict cover for death or personal injury to €1 million per victim and €5 million per claim, although the UK has never imposed any financial cap in death or personal injury cases.

In Drozdovs v Baltikums AAS [2013] EUECJ C-277/12 the Court of Justice of the European Union has clarified exactly what death or personal injury means in this context, and has concluded that “non-material” damage suffered by close relatives falls within the compulsory insurance requirement. The case was decided under the pre-2009 Directives, where the minimum sum to be insured was €350,000.