LITAKSA UAB V BTA INSURANCE CO SE

[2015] EUECJ C-556/13, Court of Justice of the European Union, 26 March 2015

Insurance (motor) - Insurer charging supplementary premium for use of vehicles elsewhere in EU - Obligation to provide EU coverage for a single premium - Third Motor Insurance Directive 90/232/EEC, article 2 - Consolidated Motor Insurance Directive 2009/103/EC, article 14

Article 2 of the Third Motor Insurance Directive, Council Directive 90/232/EEC, consolidated in article 14 of the Consolidated Motor Insurance Directive 2009, European Parliament and Council Directive 2009/103/EC, provides that a compulsory policy must provide, on the basis of a single premium, during the whole term of the contract and for the entire territory of the EU, the cover required by the law of the member state where the vehicle is used or the member state where the vehicle is normally based when that cover is higher. The policy in the present case was taken out by the assured in Lithuania with a local insurer, and it provided that the assured was permitted to use the vehicle outside Lithuania only on obtaining permission and paying an additional premium. The assured incurred liability in accidents in the UK and Germany, without having sought permission. The insurers paid the victims' claims and sought to recover one-half of its payment from the assured under the terms of the policy. The CJEU ruled, on questions referred to it by the Lithuanian Supreme Court, that the Directives required EU-wide coverage for a single premium.