UK MOTORISTS may need a Green Card if they plan to drive in the European Union (EU) following a no-deal Brexit.
And the current European Health Insurance Card (EHIC) could soon be a thing of the past for UK citizens, according to a top North Wales broker.
Niel Jones, Managing Director of Credent Commercial Insurance in Colwyn Bay, has warned businesses and consumers to be prepared for changes that could come into play after March 29.
One of the most drastic being the requirement of a Green Card for people wishing to drive their own vehicle in the EU, a move which would also hit commercial operators and haulage firms.
“The Green Card would be proof of insurance, so anyone who does drive their own vehicle in the EU without one if there is a no-deal Brexit would be breaking EU regulation,” said Mr Jones.
“This also applies to logistics companies as at present there is no formal agreement in place between the relevant European authorities allowing them to travel without one after March 29.”
He added: “These are the details people need to know and are not being made aware of, which is why we are giving our clients and customers prior warning and making them aware of legislative changes.”
Those journeying abroad have been assured by the Association of British Insurers (ABI) that the medical side of travel insurance will continue to apply, even in the event the EHIC system that allows people some free healthcare is not replaced, though costs may increase.
And the insurance industry itself is braced for the legislative and administrative strain it will be placed under should a no-deal Brexit be the outcome on March 29.
While the UK sector is in a strong position and among the top five largest in the world, the balance may shift should the Government fail to secure a positive deal in Brussels.
As a result, some of the larger insurance firms are already opening new sites in Europe to try and make the transition as smooth as possible, and to retain vital EU employees.
“There are so many scenarios to consider, even if you just look at insurance and the wider impact for businesses,” said Mr Jones.
“This is largely an administrative issue but there could be real repercussions and the freedom of service we currently have would be gone.
“That is why many insurance firms are already readying themselves for a possible downturn in the economy.
“To make things clear I would encourage businesses in particular to contact their insurance broker or insurer in anticipation of what lies ahead, so they are fully aware and prepared for what could be the situation from later this month onwards.”
Huw Evans, Director General of the ABI, reinforced those points, and added: “We want all insurance customers to know the facts about what a no-deal Brexit means for them.
“It remains the case that insurers do not want a no-deal Brexit; it would be bad for the economy and bad for our customers.
“We continue to hope these arrangements are never needed and urge the Government, UK Parliament and EU27 to agree an orderly way forward.”