What effect will Brexit have on those UK residents who are involved in a road traffic accident in an EU country?

2.5 million private vehicles travel to the European Economic Area each year, along with up to 100,000 haulage vehicles.

Under the EU Motor Directives, victims can pursue a claim in their home country either via a local representative of the foreign insurer, or a special body – the ’compensation body‘. The Motor Insurers’ Bureau (MIB) is the compensation body for the UK.

This scheme may not be maintained or replicated in the event of the UK leaving the EU without a deal. Victims may be restricted to bringing their claim against the driver or insurer in the country where the accident happened. As their cases may have to be brought in a foreign language and court this is a backward step and an unwelcome change.

Whilst the UK may decide to keep national law compliant with the EU Motor Insurance Directives in this respect, the obstacle is the fact that all other member states will have to agree, as the scheme is based on reciprocal agreements and provisions in national laws. Without the EU Motor Insurance Directives, there is nothing binding the UK to the other countries and as such it will be necessary to explore ways of coming to agreements about the provision of local representatives for insurers and also assistance for victims and reimbursement arrangements.

As cases may need to be pursued abroad, foreign lawyers are likely to be required to assist in the claim to liaise with the defendants and prepare the case for trial. Injured parties may need to return to the country where the accident happened so that medical examinations and reports can be prepared, which could be costly. The recovery of legal costs may be limited or non-existent in other jurisdictions, so cases could quickly become uneconomic to pursue.

In the event of an RTA with an uninsured or untraced driver in an EU country, UK residents may not receive compensation at all if there is a ‘no deal’ Brexit. The MIB is still trying to obtain the agreement of its counterparts in other EU member states to bilateral agreements should the UK fail to reach a deal.

If you are involved in an accident before 29 March 2019, you may need to bring legal proceedings in the UK against the foreign insurer as soon as possible in order to benefit from the current EU legislation.