The Financial Services and Markets Act 2000 (Fourth Motor Insurance Directive) Regulations 2002

Explanatory Note

(This note is not part of the Regulations)

These Regulations ensure that effect is given to one part of Directive 2000/26/EC of the European Parliament and of the Council of 16 May 2000 on the approximation of laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles and amending Council Directives 73/239/EEC and 88/357/EEC (Fourth Motor Insurance Directive) (O. J. L 181 20/07/2000 p.65).

Regulation 2 makes clear that rules made by the Financial Services Authority under section 138 of the Financial Services and Markets Act 2000 may require authorised insurers effecting or carrying out contracts of insurance covering certain types of motor vehicle liability (or Lloyd’s managing agents who manage syndicates who do such business) to make interest payments in certain specified circumstances.

Regulation 3 amends the Financial Services and Markets Act 2000 (Rights of Action) Regulations 2001 so as to prescribe new cases in which the contravention of a rule will be actionable at the suit of a person who is not a “private person” as defined in regulation 3 of those Regulations. These new cases are contravention of a rule relating to the timely reply to certain claims for compensation and contravention of a rule requiring the payment, in specified circumstances, of interest in respect of such claims.

As these Regulations give effect, in part, to the Fourth Motor Insurance Directive a Transposition Note has been prepared setting out how the Government will transpose into UK law the main elements of this Directive. A hard copy of the Transposition Note is available from the following address: Banking and General Insurance Team, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ (Telephone number: 020 7270 1389). Copies of the Note can also be obtained from HM Treasury’s website (www.hm-treasury.gov.uk).