Changes to the Compulsory Insurance minimum limit for Third Party Property Damage

The EU Motor Insurance Directive requires that the minimum amount of cover in respect of damage to Third Party property be automatically adjusted in line with inflation every five years.The EU Commission has notified that the minimum limit has been increased.

Since 1 January 2017, the minimum limit has been increased to €1,220,000

In line with this change, the UK government has passed legislation to increase the limit under the Road Traffic Act to £1,200,000 (currently £1,000,000) from 31 December 2016.

What impact will the change bring?

We expect that the impact of the increase will be minimal due to our Motor products typically providing higher limits than the compulsory minimum. However, there’ll be instances where lower limits are provided such as where a vehicle is transporting hazardous goods or used in hazardous locations. Where this is the case, our Claims teams are ready to handle claims on the increased limit.

Our customer documentation will be updated to reflect the increased limit during 2017.


For further information, please speak to your usual underwriting contact or your usual Aviva account manager.

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