Council Directive 72/166/EEC of 24 April 1972 on the approximation of the laws of Member States 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

COUNCIL DIRECTIVE of 24 April 1972 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 to the enforcement of the obligation to insure against such liability (72/166/EEC)
THE COUNCIL OF THE EUROPEAN COMMUNITIES
,
Having regard to the Treaty establishing the European Economic Community, and in particular Article 100 thereof;
Having regard to the proposal from the Commission;
Having regard to the Opinion of the European Parliament;
Having regard to the Opinion of the Economic and Social Committee;
Whereas the objective of the Treaty is to create a common market which is basically similar to a domestic market, and whereas one of the essential conditions for achieving this is to bring about the free movement of goods and persons;
Whereas the only purpose of frontier controls of compulsory insurance cover against civil liability in respect of the use of motor vehicles is to safeguard the interests of persons who may be the victims of accidents caused by such vehicles ; whereas the existence of such frontier controls results from disparities between national requirements in this field;
Whereas these disparities are such as may impede the free movement of motor vehicles and persons within the Community ; whereas, consequently, they have a direct effect on the establishment and functioning of the common market;
Whereas the Commission Recommendation of 21 June 1968 on control by customs of travellers crossing intra-Community frontiers calls upon Member States to carry out controls on travellers and their motor vehicles only under exceptional circumstances and to remove the physical barriers at customs posts;
Whereas it is desirable that the inhabitants of the Member States should become more fully aware of the reality of the common market and that to this end measures should be taken further to liberalize the rules regarding the movement of persons and motor vehicles travelling between Member States ; whereas the need for such measures has been repeatedly emphasized by members of the European Parliament;
Whereas such relaxation of the rules relating to the movement of travellers constitutes another step towards the mutual opening of their markets by Member States and the creation of conditions similar to those of a domestic market;
Whereas the abolition of checks on green cards for vehicles normally based in a Member State entering the territory of another Member State can be effected by means of an agreement between the six national insurers' bureaux, whereby each national bureau would guarantee compensation in accordance with the provisions of national law in respect of any loss or injury giving entitlement to compensation caused in its territory by one of those vehicles, whether or not insured.
Whereas such a guarantee agreement presupposes that all Community motor vehicles travelling in Community territory are covered by insurance ; whereas the national law of each Member State should, therefore, provide for the compulsory insurance of vehicles against civil liability, the insurance to be valid throughout Community territory ; whereas such national law may nevertheless provide for exemptions for certain persons and for certain types of vehicles;
Whereas the system provided for in this Directive could be extended to vehicles normally based in the territory of any third country in respect of which the national bureaux of the six Member States have concluded a similar agreement;