Insurance Update: Extension To Compulsory Motor Insurance

Irish law obliges drivers to have motor insurance to cover accidents occurring in a public place.  However as a result of yesterday's ruling by the European Court of Justice ("ECJ"), compulsory motor insurance has to cover any accident caused in the course of the use of a vehicle that is consistent with the normal function of that vehicle.  In other words, the location of the accident is irrelevant.   

The story starts in August 2007 when a Slovenian National Mr. Vnuk was knocked from a ladder by a reversing tractor and trailer in a farm yard.  He sought compensation from the motor insurers of the tractor which was declined on the basis that the accident occurred in a private place and so was not covered by the policy.   After an appeal, the Slovenian Supreme Court referred a question to the ECJ for a preliminary ruling.