Directive 2009/103/EC on motor insurance, as amended by Directive (EU) 2021/2118, sets up a mechanism to compensate victims of road traffic accidents in case of insolvency of the responsible insurer.

Under the directive, member states have to appoint compensation bodies that will deal with claims stemming from these accidents. For cross-border cases, the directive envisages that these compensation bodies conclude an agreement on the settlement arrangements among themselves by the end of 2023.

Ireland is one of 16 member states — alongside Belgium, Bulgaria, Czechia, Denmark, Greece, Spain, Cyprus, Latvia, Luxembourg, Malta, Austria, Poland, Portugal, Romania and Slovenia — which have failed to notify the Commission of the complete transposition of these articles by the deadline of 22 June 2023.

The Commission has sent letters of formal notice to the 16 member states, which now have two months to reply and complete their transposition, otherwise the Commission may decide to continue the infringement proceedings by issuing a reasoned opinion.