Text of the 5th Directive June 2002

http://europa.eu.int/comm/internal_market/en/finances/insur/com2002-244/com2002-244_en.pdf

Progress with the 5th Directive at Brussels

http://wwwdb.europarl.eu.int/oeil/oeil_ViewDNL.ProcedureView?lang=2&procid=6178

EU Press release June 2002

Click here to read

BBC News Story July 2002

http://news.bbc.co.uk/1/hi/business/2036974.stm

5th Directive - proposes a central UK "accident notification" body

Justification

The proposal will undoubtedly facilitate the settlement of claims, for the benefit of policyholders and victims alike, and will help insurance markets to function effectively. While the Central body will be obliged to forward the accident report to the insurer "without delay", it would be helpful, to improve the situation still further for policyholders and victims, if there was a requirement that the reports should be filed with the Central body also "without delay".

22/10/2003 - EP VOTE 1st READING

 The European Parliament adopted a resolution drafted by Willi ROTHLEY
and made several amendments to the Commission's proposals. The report
was adopted by 525 votes in favour, 9 against and 16 abstentions.
In addition:
- there are new definitions for 'vehicle' and 'trailer';
- five years after the expiry of the five-year transition period, the
minimum levels of cover shall be revised upwards on the basis of a 
proposal from the Commission in the light of the experience gained from 
applying the amounts;
- the statement relating to claims from insurers must cover all claims 
made under the contract, but insurers may limit the statement to the 
previous five years if the contractual relationship is longer;
- a reasoned offer of compensation must be made which must include the 
cost of pursuing claims in cases where liability is not contested and 
damages have been quantified;
- new provisions have been inserted relating to a central body which 
must be notified of all traffic-accident reports;
- certain provisions must apply to trailers.

Article 6a Central office

Member States shall take all appropriate measures to authorise a body to be notified without delay, at the same time as the judicial authorities, of all traffic-accident reports filed by police services.

That body shall without delay forward a copy of the document to each insurer or legal practitioner concerned by the accident. If a vehicle is not insured, it shall forward the document without delay to the Guarantee Fund or, if it is insured with a foreign insurer, to the national Office.

BBC News Story July 2002

An accident waiting to happen

(emailed from Insurance Times, 08/08/02)

So the bane of the motorist's life, the cyclist, could have the right to claim for every scratch and knock incurred when jumping a red light or leaping off a pavement. Having been personally on the end of both injury and claim as cyclist and driver, it is obvious that the EU Fifth Motor Directive is an accident waiting to happen.

Behind the handlebars, motorists are inconsiderate nutters who take pleasure in reckless driving. Behind the wheel, all cyclists are two-wheeled pariahs who disregard the Highway Code and get what they deserve. Never the twain shall meet.

Both are liable in most cases, but the RAC has a point. Compulsory insurance for all accidents must impact on premiums. The paperwork involved alone will choke the system and make things more dangerous - an extra £50 is a conservative estimate.

The European Commission's website offers handy tips to the most frequently asked questions on the motor directive. According to the EC, in some member states no insurance cover is offered and it's up to the courts to establish the driver's liability. In some other states, it says, the cyclist and pedestrian are covered in an accident "irrespective of whether the driver is at fault", but admits the civil liability imbedded in the different states' legislation does vary.

This is a reference to France, Belgium, Scandinavia, the Netherlands and Germany. The Commission wants this system introduced in the next two to three years. Having monitored these countries, the EC concludes that there has "been no significant impact on the cost of insurance".

But all these countries, like the UK, are suffering crises of liability and capacity and this legislation will act as an extension to a motorist's third party liability. Extra insurance in other words - which costs money.

If every scrape with a cyclist results in a claim, what will be the impact on motorists' no claims discounts.

With the insurance industry about to be hit from the fall-out of the after-the-event legal disputes like Callery v Gray, which has cost millions of pounds already, this legislation could cause gridlock for the whole motor insurance market.

Coming shortly - MDS 5th Directive solutions

For Insurers, a major change will be the need to provide up to 7 years claims experience in a standard interchange format for their clients - MDS will make this available to clients from its MIDAS system - more details to follow..

Contacts
	Email us at 5thd@motordatasolutions.co.uk for more information

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