Compulsory Liability Insurance from a European Perspective

In their study ‘Compulsory Liability Insurance from a European Perspective’ the Institute for European Tort Law (ETL) and the European Centre of Tort and Insurance Law (ECTIL) survey the general framework and legal conditions for liability insurance in Europe.

Statutory obligations to take out liability insurance are, in practice, the most important means to ensure compensability of damage arising from dangerous activities. However, in contrast to the significant practical impact, academic research on the topic has not been extensive so far. With this project the Institute for European Tort Law (ETL) and the European Centre of Tort and Insurance Law (ECTIL), therefore, undertake a comprehensive survey of compulsory liability insurance from nine national perspectives (Austria, Belgium, the Czech Republic, Finland, Germany, Hungary, Italy, Switzerland, and the United Kingdom) and take constitutional and European law (four freedoms, European Convention on Human Rights) as well as the Principles of European Insurance Contract Law (PEICL) into account. The study also includes an extensive economic analysis of compulsory liability insurance and discusses aspects of insurability. A Comparative Report, Conclusions and an Annex containing a compilation of rules on compulsory liability insurance in the nine national legal systems complete the study.

It considers in particular:

• the aims of provisions stating an obligation to take out liability insurance
• the mandatory content of insurance cover
• the protection mechanisms linked to compulsory liability insurance
• the control mechanisms and the sanctions imposed
• structural deficiencies of existing compulsory liability insurance systems