Portugal's Insurance and Pension Funds Supervisory Authority publishes draft amendments to compulsory motor liability insurance policy terms to reflect Motor Insurance Directive transposition

Portugal's Insurance and Pension Funds Supervisory Authority (ASF) published a draft regulatory standard to amend the uniform general conditions of the compulsory motor third-party liability insurance policy, updating the 2008 standard wording to reflect changes to the legal regime introduced by Decree-Law No. 26/2025 transposing Directive (EU) 2021/2118. The proposed revisions primarily clarify the scope of cover and update references and requirements for the “claims history statement”, alongside a set of related contractual and disclosure clarifications. Key proposed changes include a revised definition of when a vehicle is “in circulation”, covering use consistent with its usual transport function regardless of vehicle characteristics, terrain, and whether parked or moving. The policy would explicitly cover compensation owed by perpetrators of theft, robbery or unauthorised use of vehicles and compensation arising from deliberately caused road accidents. The draft also updates rules on international coverage, with the relevant countries to be specified in the policy’s particular conditions and with the applicable civil law and compulsory insurance limits set out for accidents abroad, including a mechanism to apply Portuguese compulsory motor insurance law where it provides higher coverage in territories where the European Economic Area agreement applies. Other amendments address contract term and cancellation notice periods, termination for just cause (including a prohibition on insurer termination after a claim), pro rata premium refunds on early cessation subject to exceptions, and an obligation to notify the insured of policy cessation where the policyholder differs. Proof-of-insurance documents would be recognised as issuable in paper or electronically, and the claims history statement would be required within 15 days of request, covering the last five years, with provisions for incorporating equivalent information issued in other Member States and for using the European Union model. The draft notes that it has already undergone public consultation and that comments were considered in line with a consultation report. Entry into force is left to be specified in the final text.