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Page 7
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THE GOVERNMENT has called for the views of industry on EEC proposals to extend compulsory motor insurance to cover liability for property damage.
Junior Transport Minister Michael Spicer, issuing a consultation paper, said that the EEC directive had to be implemented by the end of 1988, but he wanted improved domestic arrangements in place well before then.
He wanted to ensure that accident victims could generally expect to be compensated for damage to their property caused by negligent drivers, even if the driver was uninsured.
Mr Spicer said the directive specified minimum levels of protection, but there is scope for requiring additional cover to protect third parties in domestic legislation.
The Department of Transport wants more responses to the consultation paper by the end of the year.