The conclusion of a motor vehicle liability insurance contract is compulsory when the vehicle concerned is registered in a Member State even if it is not roadworthy, the Court of Justice of the European Union ruled on Thursday 29 April (Case C-383/19).
A Polish territorial community is challenging a fine imposed by the Polish Insurance Guarantee Fund for failing to insure a Polish-registered vehicle at the time of ownership in February 2018, following a confiscation order and subsequent notification of the order in April 2018. As the vehicle was in poor condition, the community decided to scrap it. As a result of this step, the vehicle was deregistered in June 2018.
In its judgment, the Court rules that the conclusion of an insurance contract against civil liability in respect of the use of a motor vehicle is compulsory where the vehicle is registered in a Member State and has not been withdrawn from circulation in accordance with the applicable national rules. The fact that the vehicle is on private property, is not roadworthy due to its technical condition and is intended for scrap does not affect the legal obligation.
The judge recalls, among other things, that the notion of ‘vehicle’ is independent of the use made of the vehicle and of the owner’s intention to use it effectively or not.
Furthermore, the insurance obligation is not linked to the use of the vehicle as a means of transport or to whether the vehicle concerned has caused damage. It also ensures the protection of victims of traffic accidents through the intervention of the compensation body for property damage or personal injury.
See the judgment: https://bit.ly/331dqmu (Original version in French by Mathieu Bion)