The 4th Directive as regards Motor Insurance (2000/26/EC) was adopted on the 16th of May 2000. Its aim is to help residents of Member States of the European Union when they are victims of a road accident in the territory of another Member State.

To this effect, it is provided that:

• All insurance undertakings that cover civil liability following on from the use of motor vehicles, appoint A CLAIMS REPRESENTATIVE in all Member States to which the victims referred to in this Directive can revert to in order to receive compensation for damages;
• The insurance undertakings or their claims representative are obliged to present the victim with an OFFER OF COMPENSATION within three months of the demand or a REASONED REPLY when the presentation of the offer is not possible.
• Each Member State establishes or authorises a COMPENSATION BODY which is responsible for compensating the victim in the four following situations: no claims representative appointed – no presentation of a reasoned reply within three months – non identification of the vehicle responsible for the accident – non identification of the insurance undertaking of this vehicle;
• Each Member State establishes or authorises a COMPENSATION BODY responsible for informing the victims of the claims representative appointed by the insurance undertaking which provides cover for the vehicle responsible for the accident of which they were the victims.

The Directive provides that the compensation bodies come to an agreement among themselves as regards their tasks, obligations and the means of reimbursement.

This agreement was reached on the 29th of April 2002. The provisions of the directive have been applicable since the 20th of January 2003.

The 4th Directive aims among other things at helping the visiting victims by allowing them to bring their claims in their own language to entities established in their own county of residence.

The appointment of a Claims Representative does not preclude the victims or their insurers to start proceedings directly against the liable party (or to its insurer).