L 149/14 Official Journal of the European Union 11.6.2005 DIRECTIVE 2005/14/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 11 May 2005 amending Council Directives 72/166/EEC, 84/5/EEC, 88/357/EEC and 90/232/EEC and Directive 2000/26/EC of the European Parliament and of the Council relating to insurance against civil liability in respect of the use of motor vehicles (Text with EEA relevance) THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EURO- PEAN UNION, Having regard to the Treaty establishing the European Commu- nity, and in particular the first and third sentences of Article 47(2), Article 55 and Article 95(1) thereof, Having regard to the proposal from the Commission (1), Having regard to the opinion of the European Economic and Social Committee (2), Acting in accordance with the procedure laid down in Article 251 of the Treaty (%), Whereas: (1) Insurance against civil liability in respect of the use of motor vehicles (motor insurance) is of special importance for European citizens, whether they are policyholders or victims of an accident. It is also a major concern for insur- ance undertakings as it constitutes an important part of non-life insurance business in the Community. Motor insurance also has an impact on the free movement of per- sons and vehicles. It should therefore be a key objective of Community action in the field of financial services to rein- force and consolidate the single insurance market in motor insurance. (1) OJ C 227 E, 24.9.2002, p. 387. (2) OJ C 95, 23.4.2003, p. 45. (®) Opinion of the European Parliament of 22 October 2003 (O] C 82 E, 1.4.2004, p. 297), Council Common Position of 26 April 2004 (not yet published in the Official Journal) and Position of the European Par- liament of 12 January 2005 (not yet published in the Official Journal). Council Decision of 18 April 2005. (2)  Very significant advances in this direction have already been achieved by Council Directive 72/166/EEC of 24 April 1972 on the approximation of the laws of Mem- ber States relating to insurance against civil liability in respect of the use of motor vehicles, and to the enforce- ment of the obligation to insure against such liability (4), by second Council Directive 84/5/EEC of 30 December 1983 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles (°), by third Council Directive 90/232/EEC of 14 May 1990 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles (%) and by Directive 2000/26/EC of the European Parliament and of the Council of 16 May 2000 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles (fourth motor insurance Directive) (7). (3)  The Community system of motor insurance needs to be updated and improved. This need has been confirmed by the consultation conducted with the industry, consumers and victims’ associations. (@)  In order to exclude any possible misinterpretation of the provisions of Directive 72/166/EEC and to make it easier to obtain insurance cover for vehicles bearing temporary plates, the definition of the territory in which the vehicle is normally based should refer to the territory of the State of which the vehicle bears a registration plate, irrespective of whether such a plate is permanent or temporary. (5)  In accordance with Directive 72/166/EEC, vehicles bear- ing false or illegal plates are considered to be normally based in the territory of the Member State that issued the original plates. This rule often means that national insur- ers’ bureaux are obliged to deal with the economic conse- quences of accidents which do not have any connection () OJ L 103, 2.5.1972, p. 1. Directive as last amended by Directive 84/5[EEC (O] L 8, 11.1.1984, p. 17). (°) OJ L 8, 11.1.1984, p. 17. Directive as last amended by Directive 90/232/EEC (O] L 129, 19.5.1990, p. 33). (¥ OJL129,19.5.1990, p. 33. () OJ L 181, 20.7.2000, p. 65.