COMMISSION OF THE EUROPEAN COMMUNITIES 
C0MC89) 625 final -SYN 165 
Brussels, 6 December 1989 
Amended Proposal for a Third 
COUNCIL DIRECTIVE 
on the approximation of the laws of the Member States 
relating to Insurance against civil liability 
In respect of the use of motor vehicles 
(presented by the Commission pursuant to Article 149 (3) 
of the EEC Treaty) 
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EXPLANATORY MEMORANDUM 
1. On 23 December 1988 the Commission presented to the Council a 
proposal for a third Council Directive on the approximation of the 
laws of the Member States relating to insurance against civil 
liability in respect of the use of motor vehicles^). 
This proposal, which Is one of the measures envisaged In the 1985 
White Paper on the completion of the Internal market, seeks to 
complete the system created by the first two third party motor 
Insurance directives of 1972^2^ and 1983(3). 
These enabled green card checks to be abolished and began the 
process of reducing the dI spar it les.between tpe levels and content 
of compulsory third party motor Insurance In the Member States. 
2. The Economic and Social Committee delivered Its opinion on 26 April 
1989W. The European Parliament has completed Its first reading, 
delivering its opinion on 25th October 1989 on the basis of the 
report prepared by its Legal Affairs Committee^5). Acting on the 
basis of the third paragraph of Article 149 of the Treaty, and 
taking account of the two opinions, the Commission hereby presents 
an amended version of its proposal for a Directive. 
3. Two out of the three amendments recommended by Parliament have been 
Incorporated, in spirit if not to the letter. Some of the 
observations formulated by the Economic and Social Committee have 
also been taken Into account. A number of additional amendments to 
improve and clarify the preamble are also proposed, in particular 
to bring out more clearly the relevance of this measure to the 
internal market programme. 
(1) C0M(88)644 final - SYN 165, OJ No. C 16, 20-1-1989, p. 12. 
(2) Directive 72/166/EEC; OJ No. L 103, 2-5-1972, p. 2. 
(3) Directive 84/5/EEC; OJ No. L 8, 11-1-1984, p. 17. 
(4) OJ No. C 159, 26-6-1989. 
(5) Doc. PE 134.232 fin. 
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The Commission has not followed Parliament's proposed amendment 
No. 2 dealing with the situation where the victim Is unable to find 
out the name of the insurer of the party liable In an accident. No 
evidence has been submitted to the Commission by the member States 
to show that this problem is particularly serious or widespread. 
Comments on the Individual Amendments Proposed 
5. in Article 1 the reference to Article 1 (1) of Directive 84/5/EEC 
is now considered superfluous and has been deleted. 
6. The proposed amendment to Article 2, second indent, is put forward 
In response to the spirit of Amendment No. 1 in Parliament's 
opinion. It seeks to ensure that»a motorist using his vehicle 
outside his home State will never have less than his home State 
insurance cover. 
7. Article 4 Is amended in accordance with the spirit of Amendment 
No. 3 In Parliament's opinion, namely the desire to find a more 
flexible solution to the problem raised by a dispute between a 
liability Insurer and the guarantee fund. 
8. A new paragraph 2 Is added to Article 5 to allow four Member States 
transitional periods under Article 8c of the Treaty for the 
application of certain provisions of the directive. 
Amended proposal for a third 
COUNCIL DIRECTIVE 
on the approximation of the laws of the member states relating to 
nsurance against civil liability In respect of the use of motor vehicles 
Initial Proposal Amended Proposal 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 100a 
thereof, 
Having regard to the proposal from the Commission, 
In cooperation with the European Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas, by Directive 72/166/EEC (*), as last amended 
by Directive 84/5/EEC (*), the Council adopted 
provisions on the approximation of the laws of the 
Member Sûtes relating to insurance against civil liability 
in respect of the use of motor vehicles and to the 
enforcement of the obligation to insure against such 
liability; 
Whereas Article 3 of Directive 72/166/EEC required 
each Member State to take ail appropriate measures to 
ensure that civil liability in respect of the use of vehicles 
normally based in its territory is covered by insurance; 
whereas the extent of. the liability covered and the terms 
and conditions of the insurance cover were to be 
determined on the basis of those measures; 
Whereas Directive 84/5/EEC reduced considerably the 
disparities between the level and content of compulsory 
civil liability insurance in the Member States; 
Whereas, however, significant disparities still exist in the 
coverage of such insurance; Unchanged 
d) 
(2) OJ No. L 103, 2.5.1972, p. 2. 
0J No. L 8', 11.1.1984, p. 17. 
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Whereas the elimination of such disparities, by ensuring 
that motor vehicle accident victims receive comparable 
treatment irrespective of where in the Community an 
accident occurs, will further facilitate the establishment 
and the operation of the internal market; Whereas motor vehicle accident victims 
should be guaranteed comparable treatment 
Irrespective of where In the Community an 
accident occurs; 
Whereas, in particular, there are gaps in the compulsory 
insurance coverage of vehicle passengers in certain 
Member Sûtes; whereas, to protect this particularly 
vulnerable category of potential victims, such gaps 
should be filled; Unchanged 
Whereas it is necessary to remove uncertainty concerning 
the application of the first indent of Article 3 (2) of 
Directive 72/166/EEC; whereas all compulsory motor 
insurance policies must cover the entire territory of the 
Community and provide under a single premium at least 
the cover required by law in all the Member States; Wherea*s uncertainty concerning the 
application of the first Indent of 
Article 3 (2) of Directive 72/166/EEC 
should be removed; whereas all compulsory 
motor insurance policies must cover the 
entire territory of the Community; 
Whereas, moreover, In the Interests of 
the Insured, every Insurance policy 
should provide In each Member State under 
a single prem Imum the cover required by 
law In that State or the cover required 
by law in the Member State In which the 
vehicle is normally based where the 
latter cover Is greater; 
Whereas Article I (4) of Directive 84/5/EEC requires 
each Member State to set up or authorize a body to 
compensate the victims of accidents caused by uninsured 
or unidentified vehicles; whereas, however, the said 
provision is without prejudice to the right of the Member 
Sûtes to regard compensation by the body as subsidiary 
or non-subsidiary; Unchanged 
Whereas, however, in the case of an accident caused by 
an uninsured vehicle the victim is required in certain 
Member States to esublish that the party responsible is 
unable or unwilling to pay compensation before he can 
claim on the body; whereas the body is better placed 
than the victim to take action against the party 
responsible; whereas, therefore, the body should not be 
able to invoke its subsidiarily in this case but should 
compensate the victim in the first insunce; Whereas, however, !n the case of an 
accident caused by an uninsured vehicle 
the victim is required In certain Member 
States to prove that the party 
responsible is unable or unwilling to pay 
compensation before he can claim on the 
body; whereas the body Is better placed 
than the victim to take action against 
the party responsible; whereas, 
therefore, the body should not be able to 
require, that the victim, in order to be 
compensated, should establish that the 
party responsible is unable or unwilling 
to pay; 
Whereas, in the event of a dispute between the body 
referred to above and a civil liability insurer as to which 
of them should compensate the victim of an accident, 
Member States, to avoid delay in the payment of 
compensation to the victim, should designate either the 
body or the insurer as responsible for paying compen­
sation in the first instance pending resolution of the 
dispute, Whereas, In the event of a dispute 
between the body referred to above and a 
clviI "IiabiIity-insurer as to which of 
them should compensate the victim of an 
accident, Member States, to avoid delay 
In the payment of compensation to the 
victim, should ensure that either the 
body or the insurer is designated as 
responsible for paying compensation in 
the first instance pending resolution of 
the dispute; 
Whereas the previous two Directives on 
civil liability in respect of automobiles 
should, in view of all these 
considerations be supplemented In a 
uniform manner; 
Whereas such an addition, which would 
lead to greater protection for the 
insured and for the victims of accidents, 
would facilitate still further the 
crossing of internal Community frontiers 
and hence the establishment and 
functioning of the internal market; 
whereas a high level of consumer 
protection should accordingly be taken as 
a basis; 
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Whereas, under the terms of Article 3c of 
the Treaty, account should be taken of 
the effort which must be made by certain 
economies which show differences In 
development; whereas certain Member 
States should, therefore, be granted 
transitional arrangements so that certain 
provisions of this Directive may be 
implemented progressively, 
HAS ADOPTED THIS DIRECTIVE: 
7 
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Article 1 
Without prejudice to the second subparagraph of Article 
2 (1) of Directive 84/5/EEC, the insurance referred to 
in Article 3 (1) of Directive 72/166/EEC and in Article I 
(1) of Directive 84/5/EEC shall cover liability for 
personal injuries to all passengers, other than the driver, 
arising out of the use of a vehicle. Article 1 
Without prejudice to the second subparagraph of Article 
2 (1) of Directive 84/5/EEC, the insurance referred to 
in Article 3 (1) of Directive 72/166/EEC 
.. shall cover liability for 
personal injuries to all passengers, other than the driver, 
arising out of the use of a vehicle. 
For the purposes of this Directive the meaning of the 
term 'vehicle' is as defined in Article 1 of Directive 
72/166/EEC For the purposes of this Directive the meaning of the 
term 'vehicle' is as defined in Article 1 of Directive 
72/166/EEC. 
Article 2 
Member States shall take the necessary steps to ensure 
that all policies of compulsory insurance covering civil 
iiability in respect of the use of vehicles: 
— cover, on the basis of a single premium, the entire 
territory of the Community; and 
— provide, on the basis of the same single premium, in 
addition to the cover required by law in the Member 
State in which the vehicle is normally based, at least 
the cover required by law in each of the other 
Member Stites. Article 2 
Member States sffall take the necessary 
steps to ensure that all policies of 
compulsory insurance covering civil 
liability in respect of the use of 
vehicles: 
- cover, on the basis of a single 
premium, the entire territory of the 
Community; and 
- provide, on the basis of the same 
single premium, and in each Member 
State, the cover required by that 
State's law or the cover' required by 
the law in the Member State in which 
the vehicle Is normally based where 
that latter cover Is greater. 
Article 3 
The following sentence shall be added to the first 
subparagraph of Article 1 (4) of Council Directive 
84/5/EEC: 
'However, Member Sûtes may not allow the body to 
make the payment of compensation conditional on 
the victim's esubtishing in any way that the person 
responsible is unable or unwilling to pay*. Unchanged 
1 
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Article 4 
For the case where there is a dispute between the body 
referred to in Article 1 (4) of Directive 84/5/EEC and 
the civil liability insurer as to which must compensate the 
victim, Member Sûtes shall designate one of these 
parties as responsible for compensating the victim 
without delay in the first insunce. If it is ultimately 
decided that the other party should have paid all or part 
of the compensation it shall reimburse accordingly the 
party which has paid. Article 4 
In the event of a dispute between the 
body referred to In Article 1(4) of 
Council Directive 84/5/EEC and the civil 
liability insurer as to which must 
compensate the victim, the Member States 
shall take the appropriate measures to 
ensure that one of these parties is 
designated as being, required In the 
first instance to compensate the victim 
without delay. 
If It is ultimately decided that the 
other party should have paid all or part 
of the compensation, that other party 
sha11 reimburse accordingly the party 
which has paid. 
Article 5 
Member States shall adopt the provisions necessary to 
comply with this Directive not later than 31 December 
1992. They shall forthwith inform the Commission 
thereof. Article 5 
1. Member States shall take the measures 
necessary to comply with this Directive 
not later than 31 December 1992. They 
shall forthwith inform the Commission 
thereof. 
2. By way of exception from paragraph 1: 
- the Hellenic Republic, the Kingdom of 
Spain and the Portuguese Republic have 
until 31 December 1995 to comply with 
the provisions of Articles 1 and 2, 
second Indent, of this Directive; 
- Ireland shall have until 31 December 
1998 to comply with the provisions of 
Article 1 as regards the pillion 
passengers of motorcycles and until 
31 December 1995 to comply with the 
provisions of Article 1 as regards 
other vehicles and to comply with 
Article 2, second Indent. 
Article 6 
This Directive is addressed to the Member Sûtes. Unchanged 

ISSN 0254-1475 
COM (89) 625 final 
DOCUMENTS 
EN 18 07 
Catalogue number : CB-CO-89-584-EN-C 
ISBN 92-77-55779-6 
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