The European Court of Justice has found that Irish insurance legislation is incompatible with European Union law.
The ruling came in a case taken by Elaine Farrell, who was travelling in the load space of an uninsured van when it crashed in 1996.
She sought compensation from the Motor Insurers Bureau of Ireland (MIBI), which provides compensation for victims of accidents involving uninsured vehicles.
But the body argued that Irish legislation excluded her from compensation, as the part of the van in which she was travelling was not designed to carry passengers.
The ECJ ruled that an EU directive required all passengers to be covered by motor insurance.
The European Commission welcomed the ruling, and said it hoped Irish law would be amended as soon as possible.
The court said the issue of insurance cover was separate from the amount of compensation to be paid, which was a matter for national law.
