Fine Gael MEP Brian Hayes has accused the Minister for Transport of "sleeping at the wheel" in relation to third party motor insurance.
Mr Hayes has called on Minister Shane Ross to work with European colleagues to bring certainty to Irish motorists.
He is seeking to change EU law due to what he calls "legal limbo" where people using vehicles on private sites, such as farmers, construction workers and motor sport enthusiasts, require third party insurance.
Mr Hayes accused the Department of Transport of presiding over a situation where the Irish legal position runs contrary to the EU position.
The reason for this is because of a judgment by the European Court of Justice in 2014.
In 2007, a Slovenian Damijan Vnuk was knocked off a ladder by a reversing tractor and demanded that he be paid compensation. His lawyers argued that the EU’s 2009 Motor Insurance Directive meant the tractor driver should pay.
The driver and his insurance company disagreed saying his policy only covered accidents on public roads and not on private land.
The disagreement went to the European Court of Justice, which in 2014 sided with the Slovenian farmer and ruled that insurance policies should cover all possible third party accidents in all places and at all times.
The judgment meant that national laws needed to be changed to ensure all vehicles be insured for third party losses, including as an example track racing cars, ride-on lawn mowers and segways.
However, Mr Hayes said Ireland had done nothing about the issue and was contravening existing ECJ judgments.
See my speech to the @Europarl_EN yesterday about an ECJ ruling which changes motor insurance law. It means that third party insurance could now be required for all vehicles in private places, a type of insurance that is not on offer and would be very costly #Vnuk #Insurance pic.twitter.com/XSf9aLcitU
— Brian Hayes MEP (@brianhayesMEP) January 16, 2018
Speaking at the European Parliament in Strasbourg, Mr. Hayes said: "We either change Irish domestic law, change our road traffic act and the interpretation of the motor insurance directive to provide for that, or we change EU law.
"I’m looking to change EU law in this area so there is clarity for Irish motorists, because if we don’t have this clarity, you’re going to get the insurance industry hiking up premiums for people and you’re going to get people without any understanding of the legal position."
Mr Hayes has written to Minister Ross and his department, both of which he said are aware of his "genuine concern" on the issue.
