In the event of a no-deal Brexit, will claimants still have a direct right of action against motor insurers?

This question relates to the European Communities (Rights Against Insurers) Regulations 2002 (EC(RAI) Regs 2002), SI 2002/3061 legislation introduced in 2003 to give effect to Article 3 of Directive 2000/26/EC, the Fourth Motor Insurance Directive, which confers on residents of the Member States of the EU the right to bring an action directly against the motor insurer of the person responsible for the accident. Given the specific provision conferring rights on residents of Member States, the question is directed at the effect of the UK’s possible departure without an agreement on the future relationship between the UK and Europe.

Since this is a statutory instrument enacted in order to implement the Motor Insurance Directive, it will remain on the statute book after departure. However, there are obvious difficulties following such a departure for any claimant seeking to rely on the right. It is worth reinforcing that the regulations are directed solely at accidents occurring within the UK. For the most part, there has been no great advantage for claimants resident within the UK in suing the insurer directly pursuant to the regulations; if the claimant proceeds against the responsible driver, contractual insurers will meet the claim pursuant to their contractual obligations to their insured. Under EC(RAI) Regs