Department for Constitutional Affairs - 4th Motor Insurance Directive

Home > Publications > Forms & Guidance > Fourth Motor Insurance Directive

Fourth Motor Insurance Directive

Transposition Note

January 2003

Directive 2000/26/EC of 16 May 2000 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles.

Article Objectives Implementation Responsibility

3 To ensure that injured parties enjoy a direct right of action in the courts against the insurance undertaking covering the responsible person against civil liability. Regulations will provide that in certain circumstances residents of the European Economic Area states (including residents of the UK) will have a right to issue proceedings in the courts against the insurer of the person responsible. The Lord Chancellor, through regulations made under section 2(2) of the European Communities Act 1972.

4(1)

4(4),(5) Motor insurers to appoint claims representatives in each other Member State.

Claims representatives to have duties to collect necessary information and take measures to negotiate settlement of claims, and powers to represent the insurance undertaking and meet claims in full. Appointing claims representatives will become a threshold condition for authorisation to carry on motor vehicle liability insurance business:
paragraph 2A of Schedule 6 to the Financial Services and Markets Act 2000 (inserted by SI 2002/....).

FSA rules requiring that insurers confer these powers on and give these duties to their claims representatives. The Treasury, in exercise of the power in paragraph 9 of Schedule 6 to the Financial Services and Markets Act (FSMA) 2000

The FSA (in relation to Lloyds) through rules made under sections 138 and 156 of FSMA.

The FSA, through rules and guidance made under sections 138, 156 and 157(1)f FSMA.

4(6) Injured parties should receive a reasoned offer of compensation or reasoned reply to the points raised in their claim from the insurer or their claims representative within three months of presenting their claim, and where this is not met, interest shall be payable on the amount of compensation offered or awarded. FSA rules. The FSA, through rules and guidance made under sections 138, 156 and 157(1) of the FSMA and regulation 2 of the Financial Services and Markets Act 2000 (Fourth Motor Insurance Directive) Regulations (SI 2000/....).

The Treasury, through exercise of their powers under sections 150(3) and 417(1) of FSMA to ensure that non-private persons may sue for contravention of the FSA rule requiring the payment of interest. (SI 2002/....).

5

5(2) To compile, or co-ordinate the compilation of and disseminate information on motor vehicles normally based in the State and their insurance policies, and entitle injured parties to obtain requisite insurance details.

To require insurers to provide information on their claims representatives to the information centres It is intended that the Motor Insurers Information Centre (MIIC) will be approved as the UK's Information Centre. Regulations will require insurers to pass the relevant information to the Information Centre and oblige the Information Centre to disseminate the information as necessary.

FSA rules The Department for Transport, through regulations made under section 2(2), European Communities Act 1972

The FSA, through rules and guidance made under sections 138, 156 and 157(1) of FSMA

6 To provide compensation to injured parties where liability has been established (without a court order) and the insurer or its claims representative has not responded to a claim within three months, or has not appointed a claims representative. It is intended that the Motor Insurers' Bureau (already the Guarantee Fund and the UK's representative under the Green Card System) will be the UK's compensation body. The Department for Transport, through regulations made under section 2(2) European Communities Act 1972.

7 To permit UK residents who are victims of accidents elsewhere in the EEA to make a direct claim to the UK Compensation Body, in cases where the other driver or their insurer is not identified. It is intended that the Motor Insurers' Bureau (already the Guarantee Fund and the UK's representatives under the Green Card System) will be the UK's compensation body. The Department for Transport, through regulations made under section 2(2) European Communities Act 1972.

12 Penalties for breach of national provisions. Existing FSA powers provide for penalties where FSA rules are breached.Failure to comply with the Regulations will be an offence. FSA

Department for Transport.

Directive 2000/26/EC of 16 May 2000 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles.
Article	Objectives	Implementation	Responsibility
3	To ensure that injured parties enjoy a direct right of action in the courts against the insurance undertaking covering the responsible person against civil liability.	Regulations will provide that in certain circumstances residents of the European Economic Area states (including residents of the UK) will have a right to issue proceedings in the courts against the insurer of the person responsible.	The Lord Chancellor, through regulations made under section 2(2) of the European Communities Act 1972.
4(1) 4(4),(5)	Motor insurers to appoint claims representatives in each other Member State. Claims representatives to have duties to collect necessary information and take measures to negotiate settlement of claims, and powers to represent the insurance undertaking and meet claims in full.	Appointing claims representatives will become a threshold condition for authorisation to carry on motor vehicle liability insurance business: paragraph 2A of Schedule 6 to the Financial Services and Markets Act 2000 (inserted by SI 2002/....). FSA rules requiring that insurers confer these powers on and give these duties to their claims representatives.	The Treasury, in exercise of the power in paragraph 9 of Schedule 6 to the Financial Services and Markets Act (FSMA) 2000 The FSA (in relation to Lloyds) through rules made under sections 138 and 156 of FSMA. The FSA, through rules and guidance made under sections 138, 156 and 157(1)f FSMA.
4(6)	Injured parties should receive a reasoned offer of compensation or reasoned reply to the points raised in their claim from the insurer or their claims representative within three months of presenting their claim, and where this is not met, interest shall be payable on the amount of compensation offered or awarded.	FSA rules.	The FSA, through rules and guidance made under sections 138, 156 and 157(1) of the FSMA and regulation 2 of the Financial Services and Markets Act 2000 (Fourth Motor Insurance Directive) Regulations (SI 2000/....). The Treasury, through exercise of their powers under sections 150(3) and 417(1) of FSMA to ensure that non-private persons may sue for contravention of the FSA rule requiring the payment of interest. (SI 2002/....).
5 5(2)	To compile, or co-ordinate the compilation of and disseminate information on motor vehicles normally based in the State and their insurance policies, and entitle injured parties to obtain requisite insurance details. To require insurers to provide information on their claims representatives to the information centres	It is intended that the Motor Insurers Information Centre (MIIC) will be approved as the UK's Information Centre. Regulations will require insurers to pass the relevant information to the Information Centre and oblige the Information Centre to disseminate the information as necessary. FSA rules	The Department for Transport, through regulations made under section 2(2), European Communities Act 1972 The FSA, through rules and guidance made under sections 138, 156 and 157(1) of FSMA
6	To provide compensation to injured parties where liability has been established (without a court order) and the insurer or its claims representative has not responded to a claim within three months, or has not appointed a claims representative.	It is intended that the Motor Insurers' Bureau (already the Guarantee Fund and the UK's representative under the Green Card System) will be the UK's compensation body.	The Department for Transport, through regulations made under section 2(2) European Communities Act 1972.
7	To permit UK residents who are victims of accidents elsewhere in the EEA to make a direct claim to the UK Compensation Body, in cases where the other driver or their insurer is not identified.	It is intended that the Motor Insurers' Bureau (already the Guarantee Fund and the UK's representatives under the Green Card System) will be the UK's compensation body.	The Department for Transport, through regulations made under section 2(2) European Communities Act 1972.
12	Penalties for breach of national provisions.	Existing FSA powers provide for penalties where FSA rules are breached.Failure to comply with the Regulations will be an offence.	FSA Department for Transport.