Statement on the EU Regulation on the circular design of vehicles and the management of end-of-life vehicles

"The EU Regulation on End-of-Life Vehicles is intended to strengthen the circular economy in the automotive sector. We support this objective. Vehicles should be used for as long as possible, repaired where feasible, and their materials reused. At the same time, the regulation must not make the claims handling process after accidents unnecessarily more complex. Insurers settle claims; they are not actors in vehicle recycling and disposal. Additional inspection or documentation requirements for insurers would therefore be the wrong approach.

Instead, clear and legally certain criteria are needed to determine when a vehicle qualifies as an end-of-life vehicle. Only then can the claims process remain reliable and practical for policyholders, repair shops, loss adjusters, and insurers."