Brussels, 28/11/2003 (Agence Europe) - On Thursday, the Competitiveness Council adopted a political agreement on the car insurance directive with a compromise on damages paid to victims, that could be accepted by Parliament in second reading.
Proposed in June 2002, the directive increases the ceilings for indemnities and facilitates insurance coverage during long term stays outside the State where the vehicle is registered. It also allows the background of the insurance holder to be transferred, which should make it easier to change insurance company.
The Council compromise fixes the minimum coverage for damages at: 1) EUR one million per victim for bodily harm. The Member States may also provide minimum coverage of EUR 5 million per accident (whatever the number of victims); 2) EUR one million per accident for material damage, with a five year transition period. The Parliament had fixed the ceilings at EUR 10 million per accident for bodily harm and EUR 5 million for material damage.
Cyclists and pedestrians that are the victims of road accidents will be entitled to compensation solely if the law of the State where the accident took place provides for this (in other words, according to the current state of the law: in France, Belgium and Sweden). The Commission hoped that these victims could be compensated systematically, but this was refused by the Council and Parliament for whom the question of compensating pedestrians and cyclists must be treated in another legislative text.
The compromise will also allow passengers to be compensated in the event of accident even when they are in a vehicle driven by a person in a state of drunkenness. This is contrary to the legislation of some Member States which limits passenger compensation in such cases, in order to combat drunk driving.