As you will be aware, Bulgaria and Romania became members of the European Union with effect from 01 January 2007.

However, the Motor Insurer Bureau (MIB), on behalf of the UK market and after consultation with Members, has not yet signed the Multilateral Agreement, Section III of the Internal Regulations, which would allow free travel of Bulgarian and Romanian motorists within the European Union and UK motorists to Bulgaria and Romania.

The situation is under review and it may be that the Agreement will be signed.

However, in the meantime, we want to alert you that there may be a conflict between policy wordings and the present situation.

Many policy wordings may refer to cover being provided by the insurer within the European Union without the need for a Green Card.

Although UK insurers will have to provide at least the minimum third party cover as required by Law in Bulgaria and Romania, in practice a Green Card is still necessary for policyholders travelling to these countries.

It may be that this is relatively short-term situation, in that we may receive the backing of the UK market to sign the Multilateral Agreement. However, BIBA's understanding is that free passage of vehicles cannot take place until this has been ratified by the European Commission, which may take some months.