Implementing the EC’s Fifth Motor Insurance Directive

No area of insurance law has been more greatly affected by EU legislation than motor insurance. Since 1972 there has been a series of five Motor Insurance Directives, aimed at producing harmonised rules and procedures for the protection of the victims of negligent drivers. The Directives have progressively expanded the scope of compulsory liability cover. The Fifth Motor Insurance Directive (2005/14/EC) perfects the process by filling in various gaps left by the earlier provisions, most importantly by allowing the victim to bring a direct action against the driver’s insurers without first having to establish and quantify the driver’s own liability. That measure was anticipated by the UK some three years ago and is now in place in this jurisdiction. However, other aspects of the Directive will require legislative change in the UK, and one of these is addressed in a recent Treasury consultation process, which closes on 24 May 2007. This concerns insurance cover for imported vehicles.