Daniel James Colley v Motor Insurers' Bureau

Daniel James Colley v Motor Insurers' Bureau

Where national law allows an insurer to avoid liability in circumstances not permitted by Directive 2009/103/EC, the State is in breach of its Article 3 insurance obligation. The MIB, as the compensation body and an emanation of the state, is directly obliged to compensate the victim for the shortfall, ensuring no gap in protection except for the strictly defined joyrider exclusion.

Parties
Claimant/respondent: Daniel James Colley; Third Defendant/appellant: Motor Insurers’ Bureau
Jurisdiction
England and Wales
Judgment Date
22 March 2022
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Motor Vehicle Insurance, Direct Effect of EU Directives, Compensation for Road Traffic Accident Victims, Avoidance of Insurance Policies, State Liability for Failure to Implement EU Law
Insurance Law European Union Law Personal Injury Motor Vehicle Insurance Direct Effect of EU Directives Compensation for Road Traffic Accident Victims Avoidance of Insurance Policies State Liability for Failure to Implement EU Law

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Parties

Daniel James Colley

Claimant/respondent

Motor Insurers’ Bureau

Third Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Does the MIB's obligation under Articles 3, 10, and 12 of Directive 2009/103/EC extend to cases where a policy of insurance existed at the time of the incident but was subsequently avoided ab initio?
  2. 2 Is the MIB liable to compensate a victim where national law allowed the insurer to avoid liability in breach of the Directive?

Ratio Decidendi

Where national law allows an insurer to avoid liability in circumstances not permitted by Directive 2009/103/EC, the State is in breach of its Article 3 insurance obligation. The MIB, as the compensation body and an emanation of the state, is directly obliged to compensate the victim for the shortfall, ensuring no gap in protection except for the strictly defined joyrider exclusion.

Court Disposition

Appeal dismissed

Orders

  • The MIB is liable to compensate Mr Colley for his injuries in accordance with the Article 3 insurance obligation under Directive 2009/103/EC.