Dutch unlimited cover not common

I was interested to read your story and comment on unlimited cover on third party motor physical damage motor claims (August PB, p3 and p15).

In the Netherlands, liability is not limited for material damage or bodily injuries. However, in court the judge is free to decide that a limitation of the liability is reasonable. The judge's limitation may not be for a lower amount than the amount for which the liability insurance gives cover.

For third party motor liability, the minimum amount must cover EUR908 (£626) for material damage and bodily injuries.

Most Dutch insurers offer this kind of insurance and unlimited coverage is rare. Most insurers use the required coverage or double it if they want to offer more. But premiums are reasonable. For example: I pay EUR200 a year for third party liability insurance on my Ford Escort.

Of course, sometimes there is an accident that exceeds the insured amount and in that case all private victims may make their claim first. Only if there is money left can the social security funds or government try to regain their losses.

If the amount is too small the government may step in. However, the guiding principle is that you have to live with your own bad luck. After all, this is not restricted to motor liability.

In the Netherlands there has been two major non-motor liability accidents with many bodily injuries in the past couple of years - Enschede (the explosion of a firework factory in the middle of a city) and Volendam (a big fire in a pub celebrating New Year).

Dik van Velzen

NIBE-SVV

Amsterdam.