Despite efforts by the EU to simplify the interpretation of
national laws, the UK insurance industry is being exposed to
significant risk from complex cases involving motorists of
differing nationalities, according to insurance law specialist
Browne Jacobson.
Although the 4th and 5th Motor Directives have been introduced
to simplify cross border insurance disputes, in practice these
measures fail to take account of the complexities of cross border
litigation. With numbers of such claims set to rise significantly
over the next decade, insurers should ensure they are properly
prepared.
Simon Robinson, head of Browne Jacobson’s Motor Insurance Group,
said:
“Although there have been few cases brought to court so far,
we anticipate that UK courts will begin to see many more cases
involving claims from foreign nationals who have been involved in
road accidents both in the UK and abroad.
“The increasingly international nature of the world is
forcing the insurance industry and the courts to make legal sense
of scenarios such as a German driver of a Spanish registered truck,
colliding with a French tourist in the middle of Oxford. Despite
the efforts of the authorities to bring clarity to this area, it is
still easy to see how a simple response to the question of where
the injured party should sue is not easy.”
Browne Jacobson is urging the insurance industry to take the
issue of ‘injury tourism’ seriously, as there is anecdotal evidence
that injured parties may opt to sue in countries where they can
maximise their damages pay-outs.
“This is a new and complex area of the law that the UK
insurance industry needs to start thinking about,” warns Robinson.
“Without the knowledge and ability to defend itself against
potentially spurious cases of ‘forum shopping’, the insurance
sector could find itself being seen as a ‘soft touch’ in Europe and
facing a hike in the number of motor claims form across the
EU.”
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