The Committee on Internal Market and Consumer Protection today adopted the report on 'Certain Issues Related to Motor Insurance' by Nickolay Mladenov MEP despite the abstention of the European Socialists. The Bulgarian Rapporteur got wide support for his suggestions: no need for European harmonising of national penalties in Members States and for complusary cover of legal expenses in motor insurance.

Referring to the implementation of the 4th Motor Insurance Directive, examined by the Commission, the Rapporteur is convinced that consumers should not be obliged to subscribe to compulsary legal expenses insurance, but that this option should remain volontary. "We have to offer consumers more information to make an informed choice about the options that the market provides. Rendering legal expenses motor insurance obligatory is not only likely to raise premiums, but bring more unjustified claims and a delay in their resolution", argued the EP Rapporteur.

Furthermore, MEPs decided that there is no need for the harmonisation of national penalty provisions. Mladenov said: "Considering the different traditions in Member States and the principle of subsidiary, we should leave the guarantee of maximum consumer protection to national regulatory bodies. However, given the fact that more and more citizens travel in the EU, particularly following enlargement and the Schengen zone, I call on the European Commission to continue monitoring the situation and provide assistance to national authorities when needed."

The report pays particular attention to the situation in new Member States: "EU legislation protects victims of car accidents, but we need more focused measures about raising consumer awareness. In new Member States, the level of consumer awareness needs to be strengthened not only by the Commission and Member States, but also by national regulatory authorities and the industry."