Motor Insurance Directive: Advocate General Gives Opinion On ‘Use Of Vehicles' And Parked Vehicles

Linea Directa Aseguradora v Segurcaixa (Case C-100/18f)

Advocate General Bot of the European Court of Justice recently concluded that a property fire caused by an electrical fault in a stationary vehicle parked in a private garage fell within the definition of vehicle 'use' for the purposes of the Motor Insurance Directive.

Therefore, the motor insurer of the vehicle was required to indemnify the owner for a subrogated action brought against him by the property insurer.

The decision is consistent with the recent line of ECJ judicial authority which held that "use of vehicles" covers any use of a vehicle that is consistent with the normal function of that vehicle, i.e. as a means of transport and not, for example, as a machine for carrying out work.

Background

Mr Rodes had parked his vehicle in the garage of a property. The vehicle caught fire the next night as a result of an electrical fault, causing property damage.

The property insurer, Segurcaixa pursued a recovery against Mr Rodes' motor insurance company, Linea Directa.

The Supreme Court in Spain held that 'use' would cover those vehicles which were parked in garages or parking areas (both public and private), and if a vehicle caught fire whilst travelling. However, the Court found that 'use' excluded circumstances where a vehicle caught fire when stationary.

Referral to the ECJ

The referral to the ECJ by the Supreme Court in Spain raised the following issue:

"Should [Article 3 of the Motor Insurance Directive] be interpreted as meaning that the concept of 'use of vehicles' covers a situation in which a fire originating in the electrical circuit of a vehicle parked in a private garage for over twenty-four hours caused damage to the house adjoining the garage."

Opinion of the Advocate General

The Advocate General provided the following key commentary:

"... situations in which a vehicle is stationary in a parking space, regardless of whether the engine is running at the time of the accident, can be regarded as being covered by the compulsory insurance." "...the use of a vehicle consistent with its function as a means of transport is not limited to driving, but extends to related acts, such as passengers using the doors to get out of a parked vehicle." "...only circumstances in which an accident occurs when the vehicle is or has been used for a purpose other than transport, for example as a machine for carrying out work or as a weapon, or even as living accommodation, do not fall...