Motor vehicle insurance

The draft Fifth Motor Insurance Directive

The regime for compulsory motor vehicle insurance in the UK has in the last 20 years been revolutionised by EC Directives. The scheme as it stood in 1972 required the user of a vehicle to carry compulsory liability insurance in respect of death or personal injury inflicted on third parties. However, as a result of the first four EC Directives, the scope of compulsory cover has been extended to property damage, to accidents occurring in public places other than roads, and to accidents caused by any person driving the assured’s vehicle whether or not the assured had consented (including thieves). There has also been a gradual erosion of border controls, so that a person insured to drive in any one EEA State is automatically covered by his policy for the entire territory of the EEA. The publication of the draft fifth Directive on 24 September 2002, in OJ 2002 C227/387, indicates yet more change for the benefit of the victims of negligent drivers. The focus on motor vehicle insurance is justified by the European Commission on the ground that it forms an important prop to the wider principle of the right of persons to move, live and work without restriction inside the EEA.