The main innovation of the 4th EU Motor Insurance Directive (2000/26/EC) is the introduction of the Protection of Visitors (PoV) scheme that helps residents of EEA Member States when they are victims of a road traffic accident in the territory of another Member State.
The PoV can be considered as the “mirror image” of the Green Card system.
To this effect, the 4th EU MID provides that:
- All insurance undertakings that cover Motor Third Party Liability Insurance, appoint a Claims Representative in all Member States to which the victims referred to in this Directive can revert in order to receive compensation for damages;
The appointment of a Claims Representative does not preclude the victims or their insurers to start proceedings directly against the liable party (or to its insurer).
- The insurance undertakings or their claims representative are obliged to present the victim with an Offer of Compensation within three months of the demand or a Reasoned Reply when the presentation of the offer is not possible.
- Each Member State establishes or authorises a Compensation Body which is responsible for compensating the victim in 4 situations (no claims representative appointed – no presentation of a reasoned reply within three months – non identification of the vehicle responsible for the accident – non identification of the insurance undertaking of this vehicle);
- Each Member State establishes or authorises an Information Centre responsible for informing the victims of the claims representative appointed by the insurance undertaking which provides cover for the vehicle responsible for the accident.
The 4th EU Motor Insurance Directive aims among others at helping the visiting victims by allowing them to bring their claims in their own language to entities established in their own country of residence.
The 4th EU Directive applies to the whole European Economic Area