Brussels, 07/04/2006 (Agence Europe) - On 6 April, the European Commission launched a public online consultation on two issues related to motor insurance: - the effectiveness of claims representatives in settling claims, and insurance cover for legal expenses.
The Fourth Motor Insurance Directive (2000/26/EC) aims to ensure that people who have been injured or suffered damages outside their Member State of residence can receive compensation in their State of residence as quickly as possible. Under the directive, motor insurance companies must appoint claims representatives in each Member State, apart from the one in which they are authorised to conduct insurance business. Visiting victims can therefore address their claims to the claims representative of their Member State of residence rather than having to contact the insurer of the liable person in the Member State where the accident occurred. The Commission is examining the effectiveness of this mechanism. During preparation of the Fifth Motor Insurance Directive (2005/14/EC) certain issues were raised regarding the coverage of legal costs (see EUROPE 8866): offer of coverage on a voluntary basis or, on the contrary, the impact in terms of the cost of premiums of including insurance cover for the victim's legal expenses in the compulsory third-party liability motor insurance to be taken out by the party at fault. The Commission agreed to examine these questions and they are also included in the consultation.