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RESEARCH PRODUCT

Motor Vehicles Not Used in Road Traffic Are Also Subject to Compulsory Insurance in Europe - CJEU Clarification in Case C-80/17

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The article analyses a recent significant case in the Court of Justice of the European Union on the extent of compulsory insurance in the field of motor insurance. The judgment delivered by the Grand Chamber of the CJEU on 04 September 2018 clarifies the obligation to conclude a motor insurance contract in a situation when a motor vehicle is no longer intended to be used in road traffic. If previously there was no doubt that motor vehicles that are used in road traffic are subject to compulsory insurance, it was unclear whether compulsory insurance in the field of motor insurance also extends to vehicles which are no longer intended to be used in road traffic. The Court formulated the ‘three criteria’ test for establishing whether a vehicle should be subject to compulsory insurance in the field of motor insurance: the vehicle is registered; the vehicle is not officially withdrawn from use; and the vehicle is capable of being driven. By applying this test in the case under discussion, the Court found that a duty to conclude a motor insurance contract also applies to vehicles that are no longer intended to be used in road traffic, irrespective of the reason for abandoning such use. The case is discussed by considering the material facts, following the Court’s reasoning and finishing with a critical assessment.