§ Mr. Michael McNair-Wilsonasked the Secretary of State for the Environment how motor insurance policies will be affected by the European Economic Community directive on motor vehicle insurance; what effect there will be on premiums payable by the British motorists; and whether he will make a statement.
§ Mr. PeytonDiscussion with the motor insurance market has established that the future statutory requirement that all motor insurance policies issued in the United Kingdom must also contain the minimum cover required by the law in each of the other member States will be met by suitable extension of policies, with effect from 1st January, 1974. Some insurers—a minority, I understand—will include a provision that indemnity to the policy holder will depend upon prior notification of travel in other EEC countries.
I am assured that the need for statutory EEC cover to be included in policies will not affect premiums for vehicle owners who do not travel abroad. Any additional premium will become payable only when such travel is actually undertaken. This is, in effect, what happens now under the present "green card" system.
So far as commercial vehicles are concerned, it is likely that a policy requirement for prior notification will be the rule rather than the exception.