Increase of minimum sum insured

The Motor Vehicles (Compulsory Insurance) Regulations 2007 (SI 2007 No 1426) have partially implemented the EU’s Fifth Motor Insurance Directive, European Parliament and Council Directive 2005/14/EC. The effect of the 2007 Regulations, which come into force on 11 June 2007, is to raise the minimum sum insured in respect of property damage. The requirement before the Regulations was, under s145 of the Road Traffic Act 1988, £0.25m for all property damage arising out of one accident. That figure is now £1m. Similarly, the obligation of an insurer to satisfy a judgment for property damage, under s151 of the 1988 Act, is raised to £1m.