Potential Provision of Green Cards to Policyholders Should a ‘No Deal’ Brexit Take Place

Dear Members,

Brokers Ireland has engaged on your behalf with the Motor Insurers’ Bureau of Ireland (MIBI) and Insurers, on the potential provision of Green Cards to policyholders should a ‘no deal’ Brexit take place.

At present, all motorists from the Republic of Ireland can drive their vehicles to the UK, including Northern Ireland, under the EU Motor Insurance Directive.  If a ‘no deal’ Brexit takes place, the Motor Insurance Directive will no longer apply to the UK.  In that scenario, anyone who drives their Irish registered motor vehicle in Northern Ireland, or other parts of the UK,  will be required to demonstrate to law enforcement agencies that they have valid motor insurance. This can be done through an internationally recognised insurance document called a ‘Green Card’.

It is Brokers Ireland’s hope that a Brexit deal will be reached which will avoid the need for Green Cards to be provided.  However, if a ‘no deal’ Brexit were to occur, Insurers are making the necessary preparations for the delivery of Green Cards to policyholders and Intermediaries.

Brexit is currently scheduled for 29 March 2019. Should that date be delayed, then the requirement for Green Cards will also be pushed back.

The MIBI will be distributing Green Cards and/or green card electronic forms to insurers. Insurers will be responsible for distributing Green Cards to their policyholders and Intermediaries.  Insurers are readying the Green Cards to be distributed in the coming weeks, so that clients that will receive a Green Card where required. At that time, we would advise that Brokers inform clients in case they are planning to drive their vehicle in Northern Ireland, or anywhere else in the UK, to contact them one month in advance of their expected travel date.  This will provide sufficient time for preparation of an individual Green Card associated with the vehicle and insurance policy.

The MIBI has set out two different options to assist Insurers in issuing Green Cards to their customers and to Intermediaries.  First, by providing Green Card stationery, which the MIBI has begun to provide to Insurers based on their stated level of requirements.  The second option is for Insurers to utilise an electronic Microsoft Word template, which MIBI continues to make available to Insurers upon request, to enable insurers to print their own Green Cards.  Guidance notes to aid insurers in correctly completing the Green Cards have also been issued. Each insurance provider will also need to decide how and when they are going to communicate to their policyholders and Intermediaries on this matter.

Brokers Ireland would recommend contacting Insurers to ascertain the timeline for provision and distribution of Green Cards.

For further information on Green Cards and Brexit, please find a link below to a Brexit and Green Card Q&A on the MIBI website:

https://www.mibi.ie/brexit.1760.html

Regards,

Cathie Shannon

Director of General Insurance