Until now, the trauma of a car accident has been compounded by lack of appropriate insurance legislation if it occurs within other European member-states.

Often, when the victim returns to his or her country of residence problems with claims for personal injury arise. When adopted, the new Fourth Motor Insurance Directive will ensure that every authorised motor insurer in the EU has a claims representative in each member-state.

According the Irish Insurance Federation newsletter, Insurance Update, this means that an Irish resident injured in a motor accident in Spain will be able to deal with an English-speaking Irish representative of a Spanish insurer when he or she returns home and wishes to pursue a claim.

The directive also requires each member-state to create an information centre housing a database of all licensed vehicles including ownership and insurance information. Therefore, drivers involved in a hit and run may track the vehicle's insurer through the registration number.

The changes will not occur overnight. Although the European Parliament and Council of Ministers completed the conciliation procedure and agreed a joint text for the directive on March 9th, the two institutions must formally ratify the text. Once approved, member-states have two years to incorporate it into national legislation. By the end of 2002, the situation for consumers should improve dramatically.