insurance and claims
What will happen post-Brexit?
Cross-border insurance and claims – What will happen post-Brexit?
There are 3 Brexit outcomes:
- A Brexit deal between the EU and the UK Government is agreed and there is no change to current rules and regulations for the foreseeable future, or;
- The UK Government proposes, and the EU agrees, to an extension of time to enable further negotiation / reality checks, or;
- There is a “no deal” Brexit and all current EU rules and regulations between the EU and the UK cease to operate on 29/03/2019. This is a wide and chaotic scenario that we are all attempting to understand the consequences of and it must be assumed that neither the EU nor the UK Government are well prepared for.
Van Ameyde is available to provide pragmatic help including safeguards for you and your organisation concerning all classes cross-border claims in the event of a “no deal” Brexit
Specifically, in the motor insurance and claims space, the following information may be useful to you:
- Green Card (Internal Regulations) Claims – The current arrangements will continue to operate as the Green Card system is not governed by any single entity like the EU. The Green Card system is underpinned with bi-lateral Agreements between the Motor Insurers’ Bureaux of participating countries. This means that, in respect of vehicles being driven into and out of the UK:
- Insurers will (presumably on a request by request basis, be required to provide Green Cards to their policyholders in order to meet the legal criteria for border checks on insurance (please bear in mind that Van Ameyde can provide advice around Green Cards and statutory obligations and that trade bodies i.e. like Motor Insurers’ Bureaux are available to assist you);
- Vehicle drivers may be asked to show valid driving licenses and / or vehicle registration documents at EU / UK border posts.
- EU 4th Motor Directive Claims – The Directive will cease to operate between the EU / EEA States and the UK with effect from 23:00 hours on 29/03/2019 and:
- It seems reasonable to expect that existing (open) claims will be run-off under the terms of the Directive but there is no guarantee, or legal precedent for, that. You, or Van Ameyde, may be notified by our respective Bureaux or regulators of changes, however, it is more likely that jurisdictional and enforcement arguments will be left to the Courts;
- There can be no new accidents and / or claims registered with effect from 23:00 on 29/03/2019 and all cross-border claims handling issues will revert to either the Green Card system or the jurisdictional rules of each State; this means that claimants may be left to initiate and litigate claims in the States in which accidents occur subject to the enforcement of damages laws of individual States.
Van Ameyde will continue to track the Brexit situation closely.
Please feel free to ask Van Ameyde any questions around contingencies for a “no deal” Brexit and Van Ameyde will attempt to unravel any confusion and support you.