Insurance

The important bit is the last paragraph on motor insurance expected to pay out in no fault accidents with cyclists and pedestrians.

It looks as if has gone away for now.

Report on the proposal for a directive of the European Parliament and of the Council amending Council Directives (Various) of the European Parliament and of the Council on insurance against civil liability in respect of the use of motor vehicles

European Parliament adopted by 525 votes in favour, 9 against and 16 abstentions a draft legislative resolution on a directive amending the rules on civil liability insurance for drivers of motor vehicles, Parliament is seeking to increase the level of insurance cover required. The draft legislation being proposed by the European Commission is designed to amend the existing directives on motor insurance which are 20 years old.

The Commission is proposing a minimum cover of ?1 million per victim in the case of personal injury and ?500,000 per claim in the case of damage to property.

Parliament increases these figures to ?5 million and ?2 million respectively but in both cases these amounts would be per accident. MEPs argue that ?1 million per victim in the case of personal injury is not enough if people have been very seriously injured.

At the same time, to multiply this by a number of victims could jeopardise the finances of insurance companies.

According to the rapporteur, there are in practice very few accidents where several people are sufficiently seriously injured for there to be any question of a claim of several million euros on grounds of personal injury.

MEPs also added that Member States may request from the Commission a transition period of up to five years. MEPs also state that five years after the expiry of the five-year transition period, that the amounts should be revised upwards on the basis of a proposal from the Commission in the light of the experience gained in applying the said amounts.

In addition, MEPs want to add the cost of legal proceedings to the level of insurance cover.

This would include the various costs incurred by an accident victim, the cost of legal and technical experts, out-of-court legal consultations, legal representation and court costs.

However, the House deletes the Commission's proposal to require motor insurance to cover personal injuries suffered by pedestrians and cyclists in an accident involving a road vehicle. MEPs believe this sensitive matter should be dealt with by separate legislation.

Trevor.B