Brussels, 21/02/2008 (Agence Europe) - On Thursday 21 February, the European Court of Justice ruled that the Irish law which denies compensation to any passenger in an uninsured vehicle in the event of an accident does not comply with European legislation. To comply with Community law, Irish law must provide for exceptions for passengers who are injured without their having been at fault in any way (case C-211/07).
A 2004 agreement between the Irish Transport Ministry and the Motor Insurers' Bureau of Ireland (MIBI) sets out conditions for compensation by the MIBI of victims of road accidents caused by uninsured vehicles. It was the restrictions on MIBI responsibility which raised the concern of the European Commission. This was true, in particular, of clause 5.2 which says that the MIBI is not required to compensate anyone who had freely got into or onto the vehicle and who “knew or ought to have known” that it was not insured. Clause 5.3 exempts the MIBI of any obligation to compensate passengers in any uninsured vehicle, even in the event of an accident caused by another vehicle.
The Commission having referred Ireland to the Court of Justice, the Court ruled that these limits placed on requirements were not compatible with Council motor vehicle insurance directive 84/5/EEC of 1983. This directive provides for the creation of a body (such as the MIBI) to compensate victims of accidents caused by uninsured persons. Ireland based its argument on Article 1 (4) of the directive, which exceptionally allows compensation not to be paid to “persons who voluntarily entered the vehicle which caused the damage or injury when the body can prove that they knew it was uninsured”. According to the Court this does not justify not compensating a person who “ought to have known” that the vehicle was not insured. In addition, the argument that excludes passengers in uninsured vehicles not responsible for causing the accident from compensation cannot be sustained under the directive. Ireland will now have to amend the agreement at issue: according to the Irish Permanent Representation in Brussels, a new agreement between the ministry and the MIBI, taking account of the ruling, is being prepared. (C.D.)