The President of the Republic, Marcelo Rebelo de Sousa, promulgated the diploma that concludes the transposition of the European Directive on Compulsory Motor Liability Insurance. The Decree-Law, approved by the Council of Ministers on 16 January, aims to reinforce the protection of victims of road accidents, introducing a mechanism that ensures compensation in case of insolvency of the responsible insurer.
What changes with this diploma?
According to Presidency of the Republicthe diploma completes the transposition of the European directive and introduces the following changes:
–Reinforcement of the protection of road accident victimsensuring that they receive compensation even if the responsible insurer is insolvent;
-Brangência for vehicles with trailersclarifying the responsibility in cases of accidents involving this type of vehicles;
-Facilitation of insurer changeensuring equal and non -discriminatory treatment of claims of claims by insurance companies.
European Commission Pressure on Portugal
According to European CommissionPortugal was among the six countries that had not yet fully transposed the European Union Directive on Auto Insurance.
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In November 2023, Brussels gave two months so that the country completed this transposition, otherwise the case advances to the Court of Justice of the European Union.
The European Directive has as its main purpose Staff the protection of victims of road accidents in all Member Statesensuring that European citizens benefit from an identical level of legal certainty, regardless of the country where the claim occurs.
Impact on the insurance industry
The insurance sector carefully follows the changes, since the introduction of mechanisms Protection in case of insolvency It may have an impact on companies’ cost structure.
However, according to experts in the sector cited by the Business Journalreinforcing regulation can increase consumer confidence and reduce any market failures.
A Portuguese Association of Insurers () has already commented on the diploma, noting that the introduced changes represent “an important step for the harmonization of the insurance sector with European standards“Ensuring greater security for all interveners.
Next Steps
With the enactment of the diploma, the government must now regulate its application, ensuring that insurers fulfill the new rules within the established deadlines.
The entry into force of these changes may represent Automobile insurance contractswhich is why consumers must be aware of any communications of their insurers.
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