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.
Regrettably, this is not a comprehensive update on the whiplash and small claims reforms that are due to be implemented in just over a year. The title is, however, the heading used by Justice Minister Lord Keen in a recent letter about these reforms to the Justice Select Committee.
Our newsflash about the decision today sets out its procedural context and the difficulties that would be associated with allowing a claimant to issue proceedings against an untraced driver.
Another view of the judgment is that it by and large entirely validates the mechanisms of the MIB’s untraced agreement, which are found to be consistent with the relevant European Directive.