Motor Insurance Directive

Updated Motor Insurance Directive: Enhanced Protection for Policyholders

Introduction

The European Union (EU) has amended its Motor Insurance Directive (Directive 2009/103/EC) to strengthen consumer protection and improve the functioning of the motor insurance market. Directive EU 2021/2118, adopted on November 24, 2021, brings about significant changes to the EU motor insurance landscape.

Key Changes

Enhanced Protection for Injured Parties

The amended directive aims to ensure that victims of motor vehicle accidents receive adequate compensation. It establishes clearer rules for determining fault and liability, and it expands the coverage of victims to include injuries caused by uninsured or unidentified vehicles.

Improved Policyholder Rights

The directive introduces new rights for policyholders, including: *

The right to switch insurers without losing any bonus-malus history

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The right to clear and transparent information about premiums and coverage

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The right to a faster and fairer claims settlement process

Strengthened Enforcement and Supervision

The directive strengthens the role of competent authorities in enforcing its provisions. It introduces new tools to monitor and supervise insurance companies, ensuring compliance and protecting consumers.

Implications for Policyholders

The updated Motor Insurance Directive has several implications for policyholders:

Increased financial protection in the event of accidents

Greater transparency and clarity in insurance policies

Improved claims handling procedures

Enhanced mobility across EU countries without additional insurance

Conclusion

The amended Motor Insurance Directive is a significant step forward in protecting consumers and improving the motor insurance market in the EU. The changes introduced by Directive EU 2021/2118 provide policyholders with increased protection, improved rights, and greater peace of mind when purchasing motor insurance. As the directive is implemented across EU member states, it will have a positive impact on the lives and safety of all road users.