Personal Injury
The injured party in a road traffic accident may bring an action directly against the insurer of the person responsible before the courts in the place where the injured party is domiciled, the European Court of Justice (ECJ) has ruled.
In FBTO Schadeverzekeringen , it was held that under EU law the right is subject only to the conditions that the insurer must be domiciled in a member state and that such a direct action must be permitted under national law.
Bond Pearce solicitor Nicholas Bevan says the ruling provides something of a breakthrough, even though there will be cases where the direct right of action does not apply, such as where the insured has compromised his indemnity through non-disclosure or misrepresentation.
Bevan says: “The ruling does not extend to tort law claims against the foreign national.”
“However, it seems that for the majority of cases where claimants are domiciled in England and injured either here or abroad by someone domiciled and insured abroad but within the European Economic Area or a contracting country, it will be possible to issue proceedings against the foreign insurer here with far greater facility, with concomitant cost savings and greater speed,” he adds.
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