Bid to extend scope of car insurance law

Date: 09/12/1999

By Renée Cordes

MEPS are urging the European Commission to extend the scope of planned new EU legislation on car insurance to allow motorists to claim for accidents which occur outside the Union's borders.

The demand, which is set to win the support of the full Parliament at its plenary session next week, is aimed at bolstering proposals which already set out to expand motorists' legal rights.

The Commission's proposals, drawn up two years ago at the Parliament's request, would make insurers liable for damages resulting from accidents occurring in any EU member state.

The plan, drafted by former Internal Market Commissioner Mario Monti, is aimed at harmonising widely differing insurance regulations across the Union and making it easier for EU drivers who are involved in road accidents while in another member state to recover the costs.

However, the Parliament argues that the proposal should be widened to force insurance companies to cover accidents in non-EU countries as well, as long as the vehicle concerned is registered in a Union member state.

German Socialist MEP Willi Rothley, the Parliament's rapporteur on the issue, argues this is both a logical extension of the proposal and is supported by the insurance industry, although there are concerns about how it would affect smaller companies.

"We are not against it," said Emmanuel Reinert, a spokesman for EU insurers' federation CEA. "Setting up offices all over Europe to expand coverage will not be a problem or major expense for larger insurance companies. However, the costs may be difficult and complicated to bear for smaller ones."

European consumer lobby group BEUC supports the move. "Insurers should cover accidents no matter where they happen," said spokeswoman Joanna Dober.

MEPs are urging the European Commission to extend the scope of planned new EU legislation on car insurance to allow motorists to claim for accidents which occur outside the Union's borders.