Page 64 - BIPAR Annual Report 2020_EN

Motor Insurance

Directive (MID)

The Commission’s proposal to amend the Motor Insurance Directive (MID) relat- Background • Add the wording “in traffic” in the definition of the term “use of vehicle”.
ing to “insurance against civil liability in respect of the use of motor vehicles, and • Clarify that the use of a vehicle in a closed area, where no access is possible by the general public, should not be considered
the enforcement of the obligation to ensure against such liability” is still under to be use of a vehicle in traffic.
examination by the EU co-legislators. The European Parliament adopted its offi- The first EU Directive on motor • Specify that, when compulsory motor insurance is required, the insurance will cover injured parties in the case of accidents
cial position report in February 2019 and the Council of the EU adopted its official insurance was adopted in 1972, occurring:
position in December 2019. The European Parliament, the Council and the Com- • (a) when the vehicle is in traffic and not being used in accordance with its primary function; and
mission have started negotiations with a view to exploring the possibility of an with the objectives of protecting • (b) outside the use of the vehicle in traffic.
agreement for the adoption of the Directive (trilogue stage). victims of motor vehicle accidents • Exclude from the scope motor vehicles and vehicles not subject to EU type approval (e.g. e-bikes, segways, electric scooters).
and facilitating the free movement • Introduce the use of a price comparison tool.
The aim of the MID review is to adapt the scope of the Directive in line with recent of motor vehicles between Member
ECJ case law, to ensure compensation is paid to victims of accidents in cases of In its position, the Council proposes, amongst others, to:
insolvency of an insurance undertaking, to harmonise minimum obligatory States. Subsequently, five motor • Not include the wording “in traffic” in the definition of “use of vehicle”.
amounts of insurance cover, to regulate insurance checks of vehicles by Member insurance Directives progressively • Introduce a definition of “vehicle”. Vehicles that are heavier than 25 kg or move faster than 25 km/h are included.
States and to facilitate the use of policyholders’ claims history statements by a strengthened the protection of • Exclude from the scope motor vehicles and light electric vehicles.
new insurance undertaking. • Require no civil liability insurance cover for vehicles used exclusively on areas with restricted access.
EU citizens. In 2009 those were
• No reference is made to price comparison tools.
BIPAR key priorities regarding this file are the following: consolidated into one EU Motor
• Motor third party liability insurance should be required at European level for Insurance Directive (2009/103/
vehicles being used only in traffic. EC). BIPAR has met and contacted MEPS on this issue.
• A compulsory requirement for price comparison tools should not be intro- BIPAR’s major concern with the Commission proposal is the proposed extension of the scope of the Directive which comes as a
duced in the motor insurance Directive. result of the Commission’s attempt to clarify the concept “use of a vehicle”. The definition of this concept draws on the recent CJEU
In its report, the EU Parliament proposes, amongst others, to: In May 2018, further to a public rulings that extend the requirements for compulsory motor insurance to any vehicle or mobile device, however and wherever it

consultation, the European is used. This could create many unintended consequences and unnecessary administrative burdens. While BIPAR recognises that
victims of accidents that take place on private land also deserve appropriate redress, we believe that MID is not the appropriate
Commission published a proposal
legal instrument to achieve this. The defining factor for the MID’s scope should be accident caused by motor vehicles in the context
to amend the current EU Motor of traffic.
Insurance Directive to better
BIPAR is also concerned about the introduction of price comparison tools in this Directive. BIPAR is of the view that compari-
protect victims of motor vehicle
son tool providers are regulated by the IDD and they should comply with its requirements when undertaking distribution
accidents and improve the rights
activities. Introducing in the MID one type of insurance distributors (comparison tools) could trigger some competition issues
of insurance policyholders. and create an unlevel playing field in the intermediation sector. Comparison tools also place overemphasis on price and fail
The Commission proposes to to provide full information of the coverage (policy terms, exclusions, level of services, etc.).

incorporate into the Directive
recent case-law of the Court
of Justice of the EU, clarifying
that accidents caused during

the normal use of a vehicle for
the purpose of transportation,
including its use on private
properties, are covered by

insurance against civil liability
(scope of application).

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