The EU is taking Ireland to Europe's highest court for failing to compensate uninsured drivers involved in road accidents.
Internal market commissioner Charlie McCreevy is expected to get political backing from his 24 colleagues at the European Commission today formally to begin the legal action at the European Court of Justice (ECJ).
The commission is objecting to Irish rules that exclude payment of compensation from the Irish Insurance Bureau to drivers in accidents where all vehicles involved are uninsured. This means that if a driver of an uninsured vehicle is involved in an accident with another uninsured car but is blameless, that driver will receive no cash.
The commission argues this is contrary to EU law, which requires state compensation bodies to cover victims of accidents caused by unidentified, uninsured vehicles.
The case was brought to the attention of the EU executive by a complaint from a Dundalk solicitor representing a man left as a paraplegic after a collision in which both drivers were uninsured. Traynor Mallon & Co solicitors, who lodged the complaint with the EU, argued that a motorcyclist who was severely injured in a crash should be awarded compensation from the State as he was blameless in the accident.
In Ireland, insured motorists who are involved in collisions with uninsured drivers can claim compensation from the Motor Insurers Bureau of Ireland (MIBI). It operates a fund generated by a levy from all motor insurance firms. However, uninsured drivers, regardless of culpability, cannot claim.
John Casey, chief executive of MIBI, said yesterday it had tried to reason with the commission.
"Why should drivers who don't pay a premium and break the law be able to access compensation? It makes no sense and sends out a very bad message to the 100,000 or so people that drive uninsured in Ireland," he added.
The commission disagrees and last October sent a reasoned opinion to the Government formally requesting it to modify its legislation.
In April 2006, the commission sent a supplementary opinion, adding its concerns relating to rules that exclude compensation to passengers travelling in vehicles they know to be uninsured. The commission argues that the Irish rules run contrary to a directive that states that compensation regimes must also include victims of accidents by unidentified or uninsured vehicles.