Retains Warsaw Convention and Hague Protocol systems but abolishes financial limits for passenger death/injury and obliges air carriers to make advance payments to alleviate economic need. It follows the IATA Agreements and seeks to harmonise the obligations of community air carriers regarding liability for accidents to passengers given that the Warsaw Convention applies only to international flights. All defences are waived for the first 100,000 SDRs of each claim but the defence under Article 21 (proof that all necessary measures to avoid the damage had been taken) of the Warsaw Convention and Hague Protocol of contributory negligence by the passenger is retained. The Regulation lays down minimum insurance requirements.

A risk is deemed to be located in an EU or EEA state if it is: (a) a building (and contents if insured under the same policy) situated in the Member State; (b) a motor vehicle, ship, yacht or aircraft registered in the Member State; (c) a travel policy not exceeding four months taken out in a Member State. For any other insured risk (including a life) it is an individual: (a) if the policyholder is habitually resident in the member state; (b) a business or organisation if the establishment to which the contract relates is situated in a Member State.

Standard form available throughout Europe in various languages. Its purpose is to get an agreed statement of facts when people are involved in road accidents to assist with the processing of any subsequent insurance claims.
***
A form issued by Motor insurers in many European countries to their policyholders for use if an accident occurs. It is for completion and signature by the parties concerned on the spot so that the basic facts about the accident can be established at the outset.

Any person who is a resident of an EU Member State, or Norway, Iceland or Liechtenstein, who is involved in a UK road traffic accident involving a UK registered motor vehicle or trailer may now sue the vehicle’s insurer. The Insurer ‘shall be directly liable to the entitled party to the extent that he is liable to the insured person. This adds to any right he may have against the driver. ECRAIR gives effect to the 4th Motor Insurance Directive to harmonise the laws relating to civil liability in the use of motor vehicles. ECRAIR goes further than the Directive by giving the right of direct action to all UK residents involved in domestic road accidents.

An expanded single insurance market by combining the EC with the European Free Trade Area subject only to the exclusion of Switzerland. EFTA take part on the basis of all three generations of Insurance Directives. Switzerland takes part only in connection with the first two generations. This gives Switzerland access to the EC’s non-life market with EC insurers gaining reciprocal access to the Swiss non-life market.
***
The member states of the European Union plus Norway, Iceland and Liechtenstein.

Formed in 1960 and consisting of Iceland, Norway, Switzerland and (from 1991) Liechtenstein. There are no import duties between members. Former members, Britain, Denmark, Portugal, Finland, and Sweden, left to join the EC. The EC and EFTA set up a combined free trade area in 1972. A further pact created the European Economic Area in 1994.