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ARTICLE · 05 JUNE 2018

REFIT For Purpose? European Commission Proposes Changes To Motor Insurance Directive

Clyde & Co
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The European Commission (EC) has published its response to its REFIT consultation on the Motor Insurance Directive (MID) which commenced last year.

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Clyde & Co LLP
Clyde & Co LLP
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The European Commission (EC) has published its response to its REFIT consultation on the Motor Insurance Directive (MID) which commenced last year.

The consultation focused on five issues with the current MID, with the objectives of simplification and cost reduction:

  1. Scope of compulsory motor insurance (following Vnuk)
  2. Insurance checks
  3. Minimum obligatory amounts of cover
  4. Insolvency of motor insurers
  5. Claims history statements

Whilst the last 4 are relatively uncontroversial, the first is certainly more contentious and could be challenging to implement.

Scope of compulsory motor insurance

Currently, the MID requires "insurance against civil liability in respect of the use of motor vehicles."  However, the definition of the use of a motor vehicle is not provided within the MID.

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