A vote in the European Parliament yesterday will make it easier to get adequate motor insurance for temporary stays in other EU member states or when buying a car abroad and driving it home to the UK.

If the Council of Ministers agrees to all the amendments to the EU's 5th Motor Insurance Directive, the directive could be signed within weeks and would come into force in 2007.

included in the amendments to the bill was a clause which provides for injured parties to 'bring legal proceedings against the civil liability insurance provider in the Member State in which they are domiciled'.

Another seeks to improve access to the basic data necessary for the settlement of claims, with the possibility that this could be available centrally in an electronic register.

Fundamental to the directive are the minimum amounts set down for compulsory personal injury cover. These are Ç1m per victim or Ç5m per claim, whatever the number of victims.

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