Following recent amendments in Cyprus law permitting a direct action from the injured party in a road traffic accident against the third party insurer of the person responsible, the European Court of Justice in a recent decision has recognised the right of the injured party to bring an action before the courts for the place where that injured party is domiciled, provided that the insurer is domiciled in a Member State of the European Union.

In the judgment delivered FBTO Schadeverzekeringen N.V. v Jack Odenbreit (Case C-463/06), Mr Odenbreit, who is domiciled in Germany, was injured in a road traffic accident which occurred in the Netherlands. He brought an action directly against the insurance company for the person responsible, FBTO Schadeverzekeringen N.V., before a German court. The Bundesgerichtshof referred a question for a preliminary ruling to the Court of Justice on whether the Community Regulation on jurisdiction allows an injured party to bring an action directly against the insurer in the courts for the place where that injured party is domiciled. The Court has replied in the affirmative, by interpreting the regulation as giving parties injured in road traffic accidents the option of suing the insurer before the courts for the place of their own domicile. It points out that the more favourable protection afforded to those parties regarded as weak, in disputes in matters relating to insurance, by the provisions of the regulation must be extended to parties injured in road traffic accidents. Consequently, the Court has held that an injured party may bring an action directly against the insurer before the courts for the place in a Member State where that injured party is domiciled, provided that such a direct action is permitted and the insurer is domiciled in a Member State.