WRITTEN QUESTION E-2314/99 by Bartho Pronk (PPE-DE) to the Commission. Motor-car insurance in foreign countries.
Date: 1999-12-13
Institutions: European Parliament, Provisional data
Subjects: application of EU law, free movement of persons, motor vehicle insurance

C 280 E/28

Official Journal of the European Communities

EN

3.10.2000

are around one twentieth of the rate for passenger cars. Similarly employee fatalities for rail freight can be
estimated at around one twentieth of the road freight rate. These statistics show that by any assessment rail
is considerably safer than road transport and therefore measures that succeed in encouraging the transfer
to rail of traffic that currently travels by road could lead to a reduction overall in injuries and fatalities.

It is therefore of considerable concern to the Commission that the market share of rail has dropped to
around 40 % of its 1970 level. In 1997, rail(cid:146)s share of all intra-Community surface transport (including
short sea shipping) was 8,6 % and its share of land transport was, as quoted, 14,4 %.

Improving the competitiveness of rail and ensuring that the rail industry is able to deliver services that
current and potential customers require would offer an important step to encourage traffic that can use rail
to do so. The railway infrastructure package, on which the Council reached a political agreement on
10th December 1999, would when implemented provide an important step in creating the conditions to
enable this. The text also foresees that safety standards should be laid down by bodies that are independent
of a railway undertaking as a safeguard to ensure confidence in the safety procedures.

The Commission is conscious of the need to ensure at Community level that appropriate safety standards
are assured. Considerable work has been undertaken by the Commission in two areas towards this end.
Firstly the Commission(cid:146)s recent proposal for a directive (1) on the interoperability of conventional rail
foresees the establishment of technical standards and the certification of equipment by notified bodies and
would oblige Member States to regularly control the operation and use of the certified railway equipment.
Secondly the Commission has been carrying out a study into safety regulations and standards for European
railways. The final report available shortly will enable an assessment of what further action is needed at
Community level.

(1) COM(99) 617 final.

(2000/C 280 E/027)

WRITTEN QUESTION E-2314/99

by Bartho Pronk (PPE-DE) to the Commission

(13 December 1999)

Subject: Motor-car insurance in foreign countries

In a number of EU Member States, including the Netherlands, motor car insurance policies restrict the
option of remaining in a foreign country, typically for any period of more than three months, in some
cases of as little as eight weeks. The reason is that a vehicle insured in those countries may remain in a
foreign country for only a limited continuous period. This situation can amount to a restriction on the
right of residence in another country (cid:129) the more so in that it generally is not possible to get insurance in
the country of temporary residence because the vehicle is not registered in that country.

1.

Is the Commission aware of this situation?

If so, does the Commission take the view that these arrangements restrict the free movement of

2.
employees and the free movement of persons?

3. Which countries are in this situation and which are not?

4. What action will the Commission take on this matter?

Answer given by Mr Bolkestein on behalf of the Commission

(13 January 2000)

The Commission is aware of the commercial practice mentioned by the Honourable Member but it does
not have accurate information about the specific insurance undertakings involved in the different Member
States.

3.10.2000

EN

Official Journal of the European Communities

C 280 E/29

As provided in the Third Motor Insurance Directive 90/232/EEC of 14 May 1990 on the approximation of
the laws of the Member States relating to insurance against civil liability in respect of the use of motor
vehicles (1) Article 2: (cid:145)all compulsory insurance policies against civil liability arising from the use of vehicles
must cover, on the basis of a single premium,
Insurance
undertakings are not therefore allowed to exclude any Community territory from their coverage. However,
legislation, a number of
according to the principle of
insurance undertakings agree in their policies that the contract shall expire after the insured person has
stayed for a certain period of time in another Member State. They consider that a change of residence of
the insured may require a re-evaluation of the risk involved. It is clear that in this context the insurance
undertaking should reimburse the policyholders the excess of premium paid as a consequence of the
anticipated termination of the contract.

freedom of contracts established in national

the entire territory of

the Community(cid:146).

The termination of the insurance contract when the insured person changes his or her residence to
another Member State seems justified since the car must be registered in the new Member State of
residence and the risk is considered to be located in the country of registration according to the insurance
directives. The insurance coverage should not present special problems in this case. The insurance may be
covered by the same insurance undertaking or another one authorised to operate on free provision of
services from their home Member State or by any undertaking established in the new Member State of
residence.

The fiscal legislation, which establishes the obligation to register cars in the Member State of residence,
provides for constraining deadlines for registration in order to ensure the payment of motor taxes. It is
desirable that insurance contracts take account of such deadlines. However it is not reasonable to expect
the insurance policies to become a permanent safeguard permitting policyholders indefinitely to delay the
registration of their cars beyond the established deadlines.

A different situation is when the insured has not really changed his or her residence to another Member
State but is only abroad on a temporary basis for professional or private reasons. In this case the
anticipated termination of the insurance contract may be troublesome for the insured who may have
difficulties to find an alternative insurance contract for a temporary stay abroad. The insurance policies
should not leave European citizens uncovered in such situations.

The Commission, which is setting up a working group on the modernisation of the motor insurance
directives with the participation of the Member States, will
look at the situation mentioned by the
Honourable Member and will consider any possible action.

(1) OJ L 129, 19.5.1990.

(2000/C 280 E/028)

WRITTEN QUESTION E-2339/99

by Alexandros Alavanos (GUE/NGL) to the Commission

(13 December 1999)

Subject: The Greek Shipping Register

Having been assessed by the relevant European Union committee, the Greek Shipping Register was
recognised as the organisation responsible for ship inspection and survey for a three-year period in Greece
alone, since it fulfilled the solely qualitative criteria of Directive 94/57/EC (1) on common rules and
standards for ship inspection and survey organisations.

Can the Commission indicate the results of the assessment of the Greek Shipping Register? Does it
consider the results of the quality assessment to be satisfactory? In what way does it fall short of the
quantitative criteria? Is it aware of any complaints against the Greek Shipping Register? What are its
general observations?

(1) OJ L 319, 12.12.1994, p. 20.