The FIA welcomes this opportunity to give feedback on the European Commission’s proposal to revise the MID. Below is our input based on our preliminary analysis of the issues concerning mobility and motor sports:
- Insolvency of an insurer: The FIA welcomes the revision of the MID establishing that Member States must set up compensation bodies or schemes, so victims can be compensated in their Member State of residence, irrespective of where the accident took place.
- Limitation periods and efficiency in the processing of claims: The proposal does not stipulate a time period during which an insurer should compensate victims. This is important so as to avoid long time periods before compensation is granted. The FIA strongly argues for the implementation of a 3-month deadline for the insurers to admit claims and a 2-month deadline after that to settle. Additionally, the proposal did not address the issues of divergence in limitation periods, which may place obstacles for citizens to get redress in cross-border accidents. The FIA therefore proposes to add a general minimum limitation period of 4 years, which would start from the date of the injury, or the date of the victims’ acknowledgement of the injury.
- Claims history statements: The proposal addresses the issue of portability of claims limited to five years. However, FIA favours an obligatory mutual recognition of at least seven years with no damages to fully ensure that insurers will treat claims history statements issued by an insurer in a different Member State equally to those issued domestically.
- Enforcement against uninsured driving and personal data: The targeted revision of the MID added a new concern about the handling of personal data from drivers, which will be used by authorities to increase the control for uninsured driving. Although Article 4 of the proposal mentions the checks on insurance must be conducted in full compliance with Regulation 2016/679, there needs to be further clarity. Here, the Proposal needs to be clearer on determining how personal data will be handled by authorities or any third parties, in order to ensure that safeguards are in place against the misuse of personal data.
- Reimbursement of legal fees, access to documents – The proposal does not tackle the issues faced by victims when seeking compensation against an insurer in court. The injured parties, if successful, should have the right to be reimbursed for the costs of any lawyer, judicial expert or expert if their involvement is required, and if the costs are reasonable. Additionally, such reasonability of the costs should be assessed considering (a) the actual services rendered; (b) any actual disbursements by the lawyer or expert; (c) the likely time spent (d) complexity; (e) any potential risk to the lawyer’s liability; and (f) rules and standards.
- Codification of the scope: The unique characteristics of motor sport have not been taken into account. The impact assessment failed to make a proper analysis of the economic impact of the proposed modifications. This proposal could lead to motor sport events becoming unaffordable, although there are currently systems in place, which allow them to be covered at reasonable prices. Setting insurances prices is the sole responsibility of the insurance companies and the enhancement of the scope will lead to an exponential increase of premium insurance policies. This in turn, would have a high social impact, affecting the grassroots practice level of thousands of motor sport fans and the organisation of motor sport events across the EU. In addition, the proposal fails to tackle practical issues, specific to motor sport, such as the implementation of the driver-to-driver liability insurance during sport competitions.
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