OK
The EC 3rd Insurance Directive Art2 (don't forget that this applies to all EU residents using an EU registered vehicle in any EU country plus Switzerland and a couple of other counties) states that every vehicle in an EU country must be insured against use in any EU country. This provision was implemented in the UK by Section 143 (3) (b) of the 1988 Road Traffic Act. Cover is to the minimum level of the country of use NOT the UK. So if for example in Belgium a pedestrian is injured by a motor vehicle then the pedestrian is compensted even if the accident is the pedestrian's fault; not the position in the UK. But UK Insurance has to cover that liability.
There are 2 subsequent EU Directives; the 4th and the 5th. The 4th has been implemented by the Motor Vehicles (Compulsory Insurance) (information centre and compensation body) Regulations 2003 and the 5th is largely irrelevant. The 4th allows victims to sue insurers direct.
I can't post all the links but if you Google any of the above then you should find the necessary info.
Bottom line is that under the Road Traffic Act your insurer has to cover the risk but if you're in breach of any term in the policy (which you may be by incuring a foreign liability-read your policy) your insurer can come after you.
Hope that helps
Q
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