Forum Brief: EU Motor Directive

The European Commission has published its proposed EU Motor Directive.

The Directive aims to modernise a number of EU rules on motor insurance, such as updating the minimum amounts of compensation that all EU motorists must have and updating the EU regime in areas where there are perceived barriers to a competitive single market.

Forum Response: Association of British Insurers

Jo Dagustun, motor manager at the ABI, told ePolitix.com: "Many of the proposals will be good news for UK motorists. We are pleased to see the commission's determination to resolve the difficulties experienced by motorists trying to insure a car bought in Europe for their journey back to the UK.

"We also welcome the commission's intention of making it easier for people to arrange motor insurance while temporarily living in another EU State. It is also good to see measures aimed at encouraging motorists to shop around for their motor insurance.

"Motorists in the UK already benefit from some of the proposals. The UK motor insurance market is highly competitive, and current minimum compensation levels for third party injury and property damage are already in excess of the directive's proposals.

"Likewise, pedestrians and cyclists who are victims of road traffic accidents in the UK are unlikely to be affected by the new proposals, because they are already entitled to compensation. We believe the impact of these proposals on UK motor premiums will be small, but we will be keeping these proposals under close review as they go through the EU legislative process".