Market Report: Europe - CEA welcomes motor liability vote.

(From Reinsurance)

On 12 January, the European Parliament voted in favour of the draft fifth motor liability directive. This outcome was supported by the member states the same day and is now pending its formal adoption by the European Union (EU) Council.

The Comite Europeen des Assurances (CEA) has welcomed the directive, which will make it easier to take out insurance cover and improve the compensation of road accident victims both at national level and in cross-border situations.

In order to facilitate competition and the ability to change insurer without unnecessary bureaucracy, policyholders will be given a claims history certificate to present to their new insurer. The CEA has said that it is now preparing a standard certificate. Moreover, the directive facilitates taking out insurance cover in cases of a temporary stay or the purchase of a car in another member state.

A central body will be set up in each member state to facilitate the availability to victims and their insurers of the basic data necessary for the settlement of claims, such as police reports.

The directive also raises the minimum levels of cover, which dated back to 1983. This will increase consumer protection overall in the EU.

According to the CEA, two important matters have been put aside, namely the inclusion of the cost of legal expenses in the definition of a claim and the specific insurance problems of trailers. The European Commission will prepare a report on these matters in the near future. The CEA has welcomed the fact that the EU institutions are willing to give these issues further consideration prior to an eventual decision and is willing to participate actively in the Commission's work.