Brussels, 13/01/2005 (Agence Europe) - Taking a stance on the report by Spanish Socialist Manuel Medina Ortega on the fifth "car insurance" directive which should make car insurance contracts more appropriate for the growing mobility of their holders, the European Parliament brought the second reading to a close. It accepts minimum damages in the case of accident as defined in the Council's common position (see EUROPE of 29 November 2003), as well as the compensation paid out to pedestrians and cyclists that are victims of accidents, whenever the civil code of Member States allows this. The Commission will report on the impact of accident-related legal costs on the cost of insurance policies. The Parliament, Council and Commission have expressed their satisfaction at being able to achieve good results on dossiers that directly concern the lives of European Union citizens.
The fifth "car insurance" directive establishes new minimum amount for damages in the event of accident, to be implemented over a transitional five-year period. For bodily harm, the European Parliament states that a minimum coverage of one million euros per victim (compared to 350,000 at the present time) or five million euros per accident irrespective of the number of victims, is a reasonable and adequate amount. For material damage, the minimum threshold is one million euros per accident. These minimum payments meet the satisfaction of Mediterranean and Central European Member States, whose legislation stipulates low amounts in damages compared to the unlimited coverage for damages that Finland and Sweden have set in place.
The European Parliament has agreed to re-introduce compensation for pedestrians and cyclists that are victims of road accidents, that had been ruled out in first reading to the satisfaction of the Committee on Insurance (see EUROPE of 25 October 2003) although it was one of the main aims of the Commission's proposal. In Member States where the civil code allows, pedestrians and cyclists will be covered by the insurance of the vehicle involved, whatever the driver's liability.
The future "car insurance" directive reviews four directives (72/166/EEC, 84/5/EEC, 90/232/EEC and 2000/26/EC) currently in force. Given the growing mobility of European citizens, it establishes new provisions that will allow short duration contracts to be drawn up. These temporary insurance policies will make it easier to stay in another Member State for a short period of time in order to study, work or live in a secondary residence. Citizens wishing to buy a new vehicle or a secondhand vehicle abroad may also benefit from a short term insurance, which will cover the vehicle until it is registered in the Member State of destination for a period of 30 days following the acquisition. Also, drivers may change insurance companies more easily by bringing competition into play in order to receive a better service at a better price. The attestation relating to details of damages for claiming compensation, necessary for such an operation, will henceforth be easier to obtain. Finally, the Member States should do whatever they can to promote access to data (e.g.: police reports) necessary for submitting damages claims in the time required. Such data should be accessible in electronic version from a central directory in each Member State.
Further to the vote in second reading, Rapporteur Manuel Medina Ortega and Nicolas Schmit, welcomed at a press conference on behalf of the Luxembourg Presidency the adoption of the Parliament's recommendation as a good sign for cooperation between the Parliament and Council under Luxembourg Presidency and as a positive event in the lives of citizens. The EP agreed to withdraw a number of amendments that the governments could not accept, especially as far as trailers are concerned, the amount of damages and legal assistance. In a press release, Charlie McCreevy, Commissioner for the Internal Market, said he was "very pleased with progress made" and felt that "this is a good idea for European vehicle manufacturers and insurance companies". The Commission is of the opinion that "it would be to the advantage of consumers to have more possibility to obtain insurance coverage for the cost of legal proceedings (…) resulting from road accidents in the European Union". It will examine the "current availability of voluntary insurance contracts for the cost of legal proceedings as well as the impact of such coverage on the cost of premiums (…) and will report as soon as possible to the European Parliament and to Council". British Conservative member Malcolm Harbour, spokesman for the EPP-ED Group on the Internal Market, warmly welcomed the European Parliament's vote which "concludes an agreement" on the fifth car insurance directive. "The amendments of Parliament (…) represent a major and necessary step towards achieving the Internal Market", he added in a press release.