Judgment — ECLI:EU:C:2008:111
Date: 2008-02-21
Language of the case: English
Court formation: Sixth Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Approximation of laws
Concepts: Motor vehicle liability insurance
Procedure: Action for failure to fulfil obligations - successful
Origin: Ireland

Action brought on 20 April 2007 - Commission of the European Communities v Ireland (Case C-211/07) Language of the case: English Parties Applicant: Commission of the European Communities (represented by: N. Yerrell, Agent) Defendant: Ireland The applicant claims that the Court should: declare that in maintaining in force Sections 5.2 and 5.3 of the Motor Insurance Agreement of 31st May 2004 and in particular by i) excluding compensation to users of vehicles if all vehicles involved are uninsured, and ii) limiting the right to compensation in respect of persons in an uninsured vehicle which did not cause the damage or injury, the Republic of Ireland has failed to fulfil its obligations under Council Directive 84/5/EEC of 30th December 1983 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles, and in particular Article 1(4), third subparagraph thereof, and order Ireland to pay the costs. Pleas in law and main arguments Section 5.3 of the Agreement between the Minister of Transport and the Motor Insurers' Bureau of Ireland of 31st May 2004 ("the Agreement") provides for the exclusion of compensation for all drivers of uninsured vehicles, whether causing the accident or not), and thus goes beyond the permitted scope of the exclusion laid down in the third subparagraph of Article 1(4) of the directive. As regards the situation of passengers travelling in uninsured vehicles, section 5.2 of the Agreement provides for a general exclusion from compensation in all cases where the injured person "knew or ought reasonably to have known that there was not in force an approved policy of insurance". All passengers in uninsured vehicles are accordingly treated identically, regardless of whether they were travelling in the vehicle causing the damage or injury or not. This is in clear contradiction with the wording of the third subparagraph of Article 1(4) of the directive, which expressly distinguishes between these two situations and limits the exclusion of compensation in relation to those persons (including the driver) in the vehicle that caused the damage or injury. ____________