Dáil Éireann Debate, Tuesday - 2 April 2019
31. Deputy Pearse Doherty asked the Minister for Transport, Tourism and Sport if drivers crossing the Border will require green cards for the purposes of insurance after Brexit; and if he will make a statement on the matter. [9849/19]
View answerLet me explain first what the Green Card system is. Green Cards were introduced before the Treaty of Rome, as a way of facilitating travel within Europe. Before the creation of the Green Card system, persons travelling with mechanically propelled vehicles between countries had to make separate insurance arrangements and carry separate documentation for each country they entered. The Green Card is a document which functions as proof of insurance, to be produced as such when required. It is not an insurance policy.
48 countries, including all EU Member States, are party of the Green Card system. However, under the terms of the EU Motor Insurance Directive, Green Cards are not required for travel within the EU. When the UK leaves the EU it will ceases to be a Member State and will therefore cease to be covered by the Directive.
What follows depends on the circumstances in which the UK leaves the EU. In the case of a departure based on the Withdrawal Agreement negotiated between the EU and the UK, there would be a transition period to December 2020, during which Green Cards would not be required. The intention is for this period to be used to negotiate a lasting arrangement between the EU and the UK, which would also avoid the need for Green Cards. Were such a final agreement not to be in place at the end of the transition period, the Backstop element of the Withdrawal Agreement would take effect. Once again, this should mean no need for Green Cards.
In the event of the UK departing from Europe with no deal in place, the default position would be that Green Cards would be required for EU-registered vehicles entering the UK and for UK-registered vehicles entering the EU. The body responsible for Green Cards in Ireland is the Motor Insurers Bureau of Ireland (MIBI). In order to prepare for the contingency of a possible no deal Brexit, the MIBI rightly took measures, in conjunction with insurance companies and brokers, to be ready to issue Green Cards if necessary. I understand that planning began last Autumn. During March 2019, given the lack of certainty on the future of the Brexit process, the issuing of Green Cards to motorists began.
It is possible under the Directive for the EU Commission to waive the requirement for Green Cards from any particular Third Country. In order for this to happen, it is a requirement that the national Motor Insurers Bureaux of all the Member States unanimously request it. I gather that all of the Bureaux have indeed made this request in respect of the UK, to take account of the possibility of a no deal outcome. The Commission has not responded to date, and we continue to request a decision.
If in spite of all efforts to the contrary a no deal Brexit should occur, and pending any decision by the Commission on a waiver of Green Cards, the default position will be that Green Cards will be required.
As I have said, the Green Card is used as proof of insurance and is not an insurance policy. The essential question for Irish motorists will then be whether their insurance policies cover driving in the UK. I understand that the vast majority of Irish motor insurance policies already include cover for travel in the UK and will continue to do so even in a no-deal Brexit. However, they will need to carry the Green Card as proof of insurance if no other agreement is reached in the meantime.
It is possible that some policies may not cover driving in the UK in the event of a no-deal Brexit. I would therefor advise drivers who may be travelling to or through Northern Ireland or Great Britain to check their motor insurance policies and, if in doubt, check with their insurers that such travel would be covered.
The position taken by authorities in Northern Ireland and Britain in relation to Green Cards for vehicles entering their jurisdiction from the EU in the event of a no deal Brexit is a matter for those authorities.
