Green Card and Brexit update to Members (Dominic Clayden, CEO)
28 January 2020
Dear Colleagues,
Much water has passed under the bridge since I last wrote to provide an update on Brexit. Following its departure from the EU on 31 January 2020 the UK will enter a transition period which is due to end on 31 December. During that time the UK will continue to be subject to EU law and little will change, but thereafter (absent any extension of the transition period) the 4th Motor Insurance Directive will cease to apply. Although both sides are committed to negotiating a trade agreement, the possibility of the UK finally leaving with no deal on 31 December cannot be ruled out.
Green Cards
The Commission is likely to come under renewed pressure (from the UK government and the Council of Bureaux - CoB) to confirm the UK’s continued participation in the Green Card Free Area. Whether they agree to do so may depend on progress in the trade agreement negotiations, and we shall keep that under close review. Towards the end of the year, if there is no confirmation from the Commission, UK motor insurers will have to prepare to start issuing green cards again.
One small positive development is that the government has confirmed it will enact legislation to permit “black and white” green cards – that is, green cards printed on white paper – which will be permitted by the CoB from July. Insurers will have the option of sending out green cards by email (as a PDF attachment), which policyholders can print on ordinary paper. It will be important to stress to policyholders that they must carry the green card as a hard-copy document; we hope that the CoB will eventually permit green cards to be carried and shown on smartphones, but that is some way off.
Reciprocity on Cross Border Claims
The Guarantee Funds of France, Poland and Romania have still not agreed to sign bilateral agreements to ensure the continuation of compensation, on a reciprocal basis, of visitors who become victims of accidents involving uninsured or untraced drivers. Unless they can be persuaded to sign, there may be no route to compensation for UK residents who visit those countries after the transition period and become victims of such accidents. We will continue our efforts to persuade them to sign, with support from the UK government.
Updates for Members and Stakeholders
In 2019 we held three update meetings in London and three in Gibraltar. Having received positive feedback on the value of these meetings as an opportunity to exchange thoughts on the potential implications of Brexit for MIB’s members and other stakeholders, we plan to hold further meetings in the Spring and – subject to confirmation – in the Autumn. We will be in touch with everyone concerned as soon as we have a firm date for the Spring meetings.
Regards,
Dominic Clayden
Chief Executive