The Supreme Court has ruled that British drivers falling victim to accidents abroad due to uninsured drivers will be limited to local compensation schemes.
The result supports the position of the insurance sector. A different decision may have resulted in a substantial rise on UK premiums.
The case was initially brought forward by Tiffany Moreno, who suffered serious injuries in an accident caused by an uninsured driver in Greece.
The Motor Insurers’ Bureau accepted liability but disputed Moreno’s claim that damages should be assessed according to English law, where compensation was likely to be much higher.
The decision is consistent with established legal principles across Europe where liability and damages are generally assessed on the basis of the law of the country in which the accident occurred.