§ Mr. Chapmanasked the Secretary of State for Transport if he will report progress on negotiations on the proposed European Community directive on motor insurance.
§ Mrs. ChalkerI am pleased to say that the directive was adopted on 30 December 1983. As I explained to the House in the debate on 31 January 1983, its main purpose is to improve guarantees of compensation for victims of motor accidents by providing for a minimum level of protection for third parties which Member States will be free to exceed if they so desire.
The most significant effect for this country is that we shall have to extend our compulsory insurance law to cover liability for property damage as well as for personal injury and to provide guarantees in cases of damage where the driver responsible was uninsured. The directive will also benefit Britons involved in motor accidents elsewhere in the Community.
I shall be seeking the views of insurers and of representative bodies on its implementation.