The Fifth Motor Insurance Directive has now been incorporated into the laws of all EU member states. The directive adds to the rights and regulations set out in the fourth directive and includes some important changes.

Up until now, if a UK citizen had a road accident abroad, they could make a claim in this country against the appointed representative of the third party insurer (i.e. a UK based insurer) but the claim, including quantum and costs, would be governed by the laws of the country where the accident occurred and any proceedings had to be issued against the foreign insurer abroad as the UK courts did not have jurisdiction.

The fifth directive has retained the appointed representative procedure but has made things much easier for the claimant. Recital 16a now allows proceedings to be issued in this country against the third party insurer with the English courts having jurisdiction so that the claim will be governed by the Civil Procedure Rules. This means that costs will be awarded against the third party insurer in the usual way under the CPR (but note the predictive costs regime does not apply) rather than the claimant being governed by foreign costs rules.

In addition although both liability and heads of damages must be determined in accordance with the foreign jurisdiction, once a head of damage is shown to be recoverable in the country where the accident had occurred, the new directive now allows the claimant to recover damages assessed in accordance with English law. Generally this will result in much higher levels of damages than awards made abroad.

Simon Pinner, Director of Box Legal comments: 'This is good news for claimants who have accidents abroad. They can now make a claim in the UK courts and be awarded UK assessed damages and costs. In order to assist solicitors, we are pleased to confirm that our underwriters have agreed that such claims will now also be covered under our ATE policies which means claimants no longer suffer any costs risks when making foreign RTA claims.'

Click here to download the Fifth Motor Insurance Directive in full [requires Adobe]