Strasbourg, 18/05/2000 (Agence Europe) - The European Parliament, approving with no amendments the common proposal drawn up with the Council, has definitively adopted the directive on motor accidents occurring outside the victim's country of origin.
Parliament had invited the Commission to propose a directive along these lines in October 1995: the Commission did so in 1997, Parliament expressed its opinion in 1998 and the Council adopted its common position in May 1999. This is an economically important issue since it covers some 500,000 cases a year. Parliament's goal was essentially to give victims easier access to the insurer obliged to settle the accident claim. Parliament's proposals (notably the introduction into national legislation of a right of direct action) were elaborated upon by the Commission, which added the obligation for Member States to create compensation bodies that will intervene in cases where no representative charged with settling the claim has been designated. The item that provoked difficulties with the Council for a time was Parliament's demand for extension of the scope of the directive to accidents taking place in third countries. After three conciliation meetings and two three-way dialogues, this problem was solved with a compromise extending the scope of the directive to third countries that are members of the "green card" system (which covers some 90% of accidents).
European Commission welcomes significant progress for "Citizen's Europe"
- Some 500,000 drivers a year are concerned
The European Commission welcomed the definitive adoption of the directive, which will have to be transposed into the national legislation of all Member States within 24 months following publication in the Official Journal (which will occur shortly), and which concerns around 500,000 European drivers a year. The spokesman noted that, with this directive, the European Parliament had used for the first time its new power to invite the Commission to come forward with a proposal.
Singe Market Commissioner Frits Bolkestein commented: "These new rules will make it easier to get speedy compensation for the half a million or so drivers every year unlucky enough to be the victim of a road accident while driving outside their country of residence. Until now, problems arising from language, the need to prove claims and deciding which law applies have all too often prevented or delayed compensation to which motorists are entitled. This is a very practical step which will directly help and reassure people driving abroad".
A statement by the Spokesman's Service points out that, in comparison to the current situation, the new directive introduces the following innovations:
- accident victims can now go directly to the insurer of the liable party. Every insurer will nominate a claims representative in every EU Member State. An accident victim will be able to deal with a representative of the liable insurer in his or her own Member State and language;
- Member States must make sure they impose sanctions to accelerate compensation. Liable insurers who take more than three months to make a reasoned reply to a compensation request may be fined;
- An information body will be established in all Member States to deal with the business of motor vehicle insurers in general. In future, accident victims will be able to find out who insures the liable party automatically and quickly;
- A compensation body will be established in each Member State and charged with settling visitors' claims in cases where there is no claims representative or where the insurer is too slow in dealing with the file. This body will have an automatic right of redress against its counterpart in the country where the defaulting insurer operates, which in turn has the right to demand reimbursement from that insurer. This should ensure that accident victims are reimbursed more quickly.
The compensation body will not be expensive to set up because it builds on the existing reimbursement mechanism of the green card system. This is an agreement of national insurers based on mutual recognition of foreign motor insurance.