1. b usiness services c onstruction & property i nsurance & indemnity l eisure m edia & technology p ublic sector r etail t ransport Sixth European Bus & Coach Forum Kortrijk, 16 th October 2009 Alistair Kinley Head of Policy, Berrymans Lace Mawer (UK) Rights of passengers, costs & benefits

2. Commission proposals – five key areas 1. Prevention of discrimination – on basis of nationality or residence, regarding prices – on basis of disability or reduced mobility, regarding booking and access 2. Provision of assistance – to the disabled and to those of reduced mobility 3. Provision of adequate information – about delays and associated rights 4. Standardised rules on liability – in the event of death or injury, or damage to luggage 5. Introduction of oversight mechanisms – complaints procedures and a national responsible body

3. Liability: in principle Standardised rules on liability in the event of death or injury, or damage to luggage Chapter II articles 6 - 9 Essentially qualified strict liability for operators – proof of fault is not necessary With some complex rules and defences – the operator took due care and attention, and the accident was ‘force majeure’ unavoidable [but this will not apply under €220k per passenger] – passenger’s contributory negligence Controversial requirement for operators to make interim payments for reasonable needs, within 15 days, and not less than €21k in case of death [but not if other travel policy exists] Strict liability does not mean sole liability, and rights of recourse will still apply

4. Liability: in practice a complex web of operators, passengers & insurers bus operator passenger motor insurer travel insurer third party motor insurer national compensation fund? social security tour operator

5. Liability: costs and benefits There are no accurate figures. Period. “Since no reliable records of the number of victims relying on the application of foreign law exist, there are only estimates ranging from 1% to 7.5% of all road traffic accident victims … a certain percentage of visiting victims will be cross border workers or commuters [who are] often protected under labour laws, special insurance schemes and/or their contract with their employer. Furthermore many visiting parties travel with tour operators and are covered by additional insurance products …” Commission consultation paper March 2009 Compensation of cross border road traffic accidents

6. Conclusions? There appears as yet to be no firm evidence base on which to cost or model the proposals The development and pricing of competitive insurance products to meet bus/coach operators’ needs - and their passengers’ claims - requires sound actuarial data – have you got it? There is a very long way to go yet on the liability chapter Note the UK Government position (as of September 2009) “The Government has significant reservations about the liability provisions … we do not believe that the evidence supplied … justifies the imposition of strict liability up to a certain level … compulsory advance payments before liability is established could be unfair to bus and coach operators …” “we are seeking the removal of the chapter or revisions to the text”

7. b usiness services c onstruction & property i nsurance & indemnity l eisure m edia & technology p ublic sector r etail t ransport Sixth European Bus & Coach Forum Kortrijk, 16 th October 2009 Alistair Kinley Head of Policy, Berrymans Lace Mawer (UK) Rights of passengers, costs & benefits