Brussels, 27/03/2015 (Agence Europe) - Compulsory motor car insurance premiums should not differ depending on whether the car insured is driven in one member state or several, the Court of Justice of the EU rules in a judgment (case C-556/13) delivered on Thursday 26 March.
EU law is very clear on this point: when a compulsory insurance policy is taken out for a motor car, the insurer provides cover valid for the entire territory of the EU, in return for a single premium. Can, however, this premium be varied depending on where the insured vehicle is driven within the EU, as a Lithuanian insurance company does, demanding a supplement if a vehicle will be driven outside Lithuania for a period of more than 28 days, to fully compensate the victims of any accidents that might happen?
The short answer to that question is “no”, the Court said. It ruled that, in light of the directive on insurance against civil liability in respect of the use of motor vehicles (2005/14/EC), payment of the single premium places a duty on the insurer to bear the risk of compensating the victims of any possible accident, no matter in which member state the insured vehicle is being used or where the accident takes place. (Jan Kordys)