Motor vehicle insurance

Direct actions against insurers

Implementation of the EC Motor Insurance Directives is now moving apace. The European Communities (Rights against Insurers) Regulations 2002 (SI 2002 No 3061) have, following the Treasury’s promise discussed in the January 2003 issue of Insurance Law Monthly, introduced into English law the concept of a direct action against motor insurers. A further development is European Commission Decision 2003/20/EC, published in OJ 2003 L8/35, bringing into effect, as from 20 January 2003, art 6 of the Fourth Motor Insurance Directive, European Parliament and Council Directive 2000/26/EC. Under art 6, a person injured in a Member State in which he is not resident is entitled to apply for compensation to the Motor Insurers Bureau of the Member State in which he resides.