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New legislation: Insurance - for motor vehicles

United Kingdom
31/08/1999
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The Council has adopted a common position on insurance against civil liability in respect of the use of motor vehicles. The proposed Directive concerns accidents caused by the use of a vehicle: (1) insured through an establishment in a Member State other than the State of residence of the injured party, and (2) normally based in a Member State other than the State of residence of the injured party.

Injured parties would enjoy a direct right of action against the insurance undertaking of the responsible person for civil liability. To improve the legal position of injured parties, the proposal introduces rules concerning claims representatives in the injured party’s Member State of residence. Member States will have to establish a compensation body to which the injured party may present a compensation claim, unless they have taken legal action directly against the insurance undertaking. The proposal also lays down procedural rules and reimbursement rules. (OJ C232 13.08.99)

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