8.2 Chapter 2: historical background - five lines of development

Following a prelude before the Second World War, the Green Card system took shape between 1949 and 1953. This system protects the victim of an accident caused by a foreign, visiting motor vehicle. Starting in 1953 with 19 participating countries, it has, over the years, developed into a system that covers 45 countries, including all Member States of the European Economic Area (EEA), most of the rest of Europe and a number of countries to the south of the Mediterranean and in the Near and Middle East.

The second line along which the protection of victims of international traffic developed is that of the EU. The involvement of the EU should be seen in the context of the interval market of the EU in which the free movement of persons, goods, services and capital is ensured. The risks to which motorists and accident victims are exposed constitute an obstacle to this free movement.

The first intervention of the EU in this area was the 1st Directive of 1972. This Directive is built on the structures of the green card system and was inspired by examples that had existed in northern Europe since the 1930s and in Western and Central Europe since the 1950s and 1960s. It introduced compulsory insurance with coverage throughout the Community and made an end to green card checks at the borders. Under this Directive, the Bureaux ensured the settling of not only those claims caused by insured motor vehicles (normally based in the territory of the Member States), but also of claims resulting from accidents caused by uninsured vehicles.

The third line is that of the protection of a resident of a Member State who in a country other than the country of his residence (or, under certain circumstances, in another country covered by the green card system) becomes the victim of an accident for which a motor vehicle not normally based in the member state of the victims residence is liable. The protection of the visiting victim, introduced by the 4^th Directive, is organised in a new structure of claims representatives, compensation bodies and information centres, set up in addition to the green card system.

The fourth line along which the protection developed - and which also improved the position of road victims other than those of international traffic accidents - is that of EU involvement in the content of the coverage under the policy, the introduction in all Member States of guarantee funds and of rules of procedure in connection with claims settlement. An important part of these improvements also benefits the insured liable person, because improved cover under the insurance policy reduces the risk that the insured must bear (part of) the damages himself.

In 2009, the five directives in the field of compulsory MTPL insurance, adopted since 1972, were codified in a single new directive, without changing the substance of the legislation. The previous directives, which formed the basis for the codification, were repealed in the process.