§ Mr. Shersby
To ask the Chancellor of the Duchy of Lancaster what information he has concerning the extension of comprehensive and third party motor insurance to other European Community countries in the light of the forthcoming completion of the Channel tunnel and the single European market.
§ Mr. Peter Bottomley
Motor insurance policies issued in one member state already provide the cover required by law in each of the others. From 31 December 1988, policies throughout the Community will cover liability for damage to property as well as bodily injury. This is required by directive 84/5/EC. We introduced regulations last December to comply with the directive. The Community's effort has been directed to the harmonisation of compulsory requirements to protect the interests of accident victims. Our view is that it is for individual drivers to decide what cover they require in addition to compulsory insurance.