European Commission proposes insurance changes to protect motorists
Plans would see vehicle policyholders treated equally across the European Union as well as a crackdown on uninsured drivers
Drivers are set for greater insurance protection under proposals from the European Commission.
If introduced, the rules will standardise insurance across the EU, setting minimum levels of cover as well as creating a set format for insurance histories. This would see those with an insurance claims history in an EU country being treated equally by other member states.
Minimum levels of cover would also be harmonised, with each country also having to define which motor vehicles require insurance. Previously, the EC drew criticism from the British Insurance Brokers’ Association (Biba) over proposals to extend the Motor Insurance Directive to include vehicles such as ride-on lawnmowers and mobility scooters.
The new plans build on this, aiming to clarify what constitutes ‘normal’ use of a motor vehicle and setting out a procedure for accidents that happen on private land or in agricultural settings.
Crucially, protection would be offered to people in the event of an insurance company going bust, although the UK insurance industry already offers this.
Finally, EU states would be given greater power to combat uninsured drivers. The use of automatic number plate recognition systems would be allowed – a practice currently forbidden, as it’s seen as a barrier to free movement. Checks on a foreign driver’s insurance would be allowed provided they didn’t require stopping the vehicle.
Biba welcomed some of the proposals, particularly those for minimum levels of cover and the ability to crack down on uninsured drivers, but was less thrilled by the harmonisation of claims histories. It said: “Biba believes that any prescriptive requirement for uniformity will create an administrative burden, significant IT system changes and add cost into a system which already works well in the UK.”
The group also expressed fresh concern over the lack of clarity relating to the Motor Insurance Directive. Executive director Graeme Trudgill said: “We intend to continue to express our concerns that these proposals may increase bureaucracy, cost and uncertainty for personal and commercial policyholders, resulting in potentially significant unintended consequences in areas such as motorsports and for vehicles not previously requiring motor insurance.”
