MEPs back 5th Motor Insurance Directive

Publication date: 12 January 2005

The European Parliament adopted today in second reading a compromise package on insurance against civil liability in respect of the use of motor vehicles. The 5th Motor Insurance Directive (COM(2002) 244 - 2002/0124 (COD)) will make it easier to insure, buy and sell a car and to optain valid cover outside the country of residence. It will also improve the protection of pedestrians and cyclists who will be covered in case of an accident by the mandatory insurance of the vehicle involved.

motor_insurance_com2002_244.pdf (140 KB)

The new directive goes further than previous regulations. Notably, it makes provisions for short-term insurance. The directive will allow insurance cover for a temporary stay in another Member State other than the country where the vehicle is insured (periods of study, work, second home residences). Indeed, where a vehicle is dispatched from one Member State to another, the Member State where the risk is situated will be considered to be the Member State of destination immediately upon acceptance of delivery by the purchaser for a period of thirty days, even though the vehicle has not formally been registered in the Member State of destination.

The law sets a new minimum amount for personal injury of €1m per victim and/or a minimum amount of €5m per accident. Material damages will be covered with the amount of  €1m per accident. The new rules are due to come into for force after a transitional period of five years. Minimum amounts will be revised automatically every five years according to the European Index of Consumer Prices.

Related News Items:
- Council Common Position on 5th Motor Insurance Directive (26 April 2004)
- Council agrees on 5th Motor Insurance Directive (27 November 2003)

Further information:
- Communication from the Commission to the European Parliament concerning the common position of the Council (COM(2004) 351 final)
com2004_351.pdf (132 KB)