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MID reform the journey continues as European Parliament points to pragmatic solution

28 February 2019

In November DWF commented on the draft report on the Motor Insurance Directive (2009/103/EC "MID") of the Internal Market Consumer Protection Committee (IMCO) produced by Rapporteur Dita Charanzová. This month the proposals have been voted on and approved by the full Parliament. Amy Jeffs reviews recent developments.


The REFIT review of MID addresses a number of areas including:

  • Impact of insurer insolvency
  • Transferability of claims history information
  • Minimum levels of cover
  • Insurance checks
  • Scope of the Directive

Of those areas, the scope of the Directive has been the one to provoke the most discussion. On that, the draft report was met in the UK with a largely favourable response amongst insurers and other interest organisations. Whilst the proposals would result in amendments to the compulsory regimes across the member states, the draft report was widely regarded as providing a more practical solution to the codification of the decision in Vnuk proposed by the European Commission in May 2018.

We reported on the draft report in our update Motoring on - the bumpy road to MID reform. In summary:

  • A compulsory regime is applied to vehicles "in traffic" meaning vehicles "in circulation" on a public or private road.
  • Vehicles used exclusively in "closed areas" are excluded from the regime.
  • Small, new types of vehicles (such as e-bikes and Segways) are excluded from cover.
  • A specific exclusion is applied to motor sports.
  • There is an option for member states to exclude cover for vehicles not "in traffic" and where there would not be a reasonable expectation of cover.  An exclusion may be applied to a machine or "tool of trade" function of a vehicle.

Parliament and beyond

Following discussion of the draft report within the Committee, a Final Report came before the full European Parliament on 13 February 2019, in a vote on whether to adopt the IMCO amendments.  The IMCO proposals were wholeheartedly approved (562 in favour, 36 against and 19 abstaining).

The File now goes back to IMCO for inter-institutional negotiations known as the trilogue. We have previously reported on the time constraints to progress, with European Parliamentary elections in May 2019.   The overwhelming support of MEPs for the proposals may well go some way to smooth and expedite those negotiations.

The European Union has highlighted that the application of the proposed rules to self-drive cars would need to be reviewed after implementation of the new laws.  It appears to us likely that the application of rules and exclusions will be ongoing as technologies develop

Further reading

IMCO Press Release on 13 February 2019: Parliament closes legal loopholes to protect victims of road accidents

Text adopted by Parliament on 13 February 2019: Texts adopted - Wednesday, 13 February 2019 - Insurance of motor vehicles


For further information, please contact Amy Jeffs, Director, Commercial Insurance on 0151 907 3303 or at amy.jeffs@dwf.law