Sweeping changes to EU motor insurance laws have been proposed by a committee of the European Parliament, with the aim of improving the legal protection of accident victims.

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A report drawn up by the EP's legal affairs committee has called on EU national governments to compel insurers to provide either an offer or a refusal of compensation within three months of receiving a claim and sets an EU-wide minimum of two million euros as the sum insured.

The report also says that insurers should provide cover for up to 30 days for anyone who wants to buy a vehicle registered in another member state and drive it home.

Other changes demanded by the MEPs include setting the period for compulsory re-registration of a vehicle purchased in another member state at three months - at present this ranges from one day in Ireland to one year in Germany, Italy and the Netherlands.

The committee also says that insurance companies should extend cover for any policyholder living temporarily in another country for up to 12 months. At present most insurers withdraw this cover.

The committee has no direct legislative power - its report is a formal call for the European Commission to table the proposals.

Brussels officials said the report would be "keenly examined."


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