These Regulations amend the Financial Services and Markets Act 2000 (c. 8) (the Act) and the Financial Services and Markets Act 2000 (Law Applicable to Contracts of Insurance) Regulations 2001 (SI 2001/2635) (the 2001 Regulations) to change the meaning of ‘EEA State in which a risk is situated’ in certain circumstances in the context of vehicle insurance.
These Regulations implement Article 4a(1) of Council Directive 1990/232/EEC of 14 May 1990 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles (the Third Motor Insurance Directive) which was inserted into the Directive by Article 4(4) of Directive 2005/14/EC of 11 May 2005 of the European Parliament and of the Council (the Fifth Motor Insurance Directive).
Regulations 2 and 3 amend the Act and 2001 Regulations respectively so that they provide for circumstances in which, for the purposes of insurance business transfer schemes and contracts of insurance, a reference to the EEA State in which a risk is situated is a reference to the EEA State destination, and not registration, of the vehicle.
As these Regulations implement, in part, the Third Motor Insurance Directive, as amended by the Fifth Motor Insurance Directive, the Transposition Note setting out how the Government transposed into UK law the main elements of the Fifth Motor Insurance Directive has been amended to reflect this further element of transposition.
A full regulatory impact assessment of the effect that this instrument will have on the costs of business is annexed to the Explanatory Memorandum which is available alongside this Order on the OPSI website.
View Explanatory Memorandum - The Financial Services and Markets Act 2000 (Motor Insurance) Regulations 2007 No. 2403, (PDF 124KB), 20 August 2007