The most recent paper from the EU Council sets out its agreed negotiating position ahead of the legislative trilogue process (the other interlocutors being the Commission and the Parliament) aimed at amending the Motor Insurance Directive and scheduled for the first half of 2020. The question of the scope of the Directive is key.
Two decisions of the Court of Appeal in recent weeks have referred to approximately six million claims having been started in the low value RTA protocol since its introduction. That number is roughly equivalent to one in ten of the population of England & Wales. Both recent decisions – Aldred v Cham and Lai Ho v Adelekun – examine detailed points of the associated fixed costs regime and are said to affect significant numbers of cases.
Today’s decision of the Court of Justice of the EU holds that fire damage due caused by a car catching fire more than 24 hours after it had been parked in a garage was “use of a vehicle” and therefore within the scope of compulsory insurance set down in the relevant directive. As a result, the motor insurer would be required to meet the fire damage claim of around €45,000.