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14 EJCCL 1 (2022)

handle is hein.journals/ejccl14 and id is 1 raw text is: LEADING ARTICLE

Spanish and EU Legislation on Carrier's
Liability Insurance in Land Transport'

1.   Introduction
The provision of passenger land transport services, by
rail or road, by bus or coach, or in passenger cars, under
a taxi licence or one of car rental with driver, constitutes
a dangerous activity in itself. Consequently, the individu-
als involved in its development are required to take out
compulsory insurance, so that they can be held liable for
the potential damages to passengers during transport.
However, and contrary to land transport of goods where
the carrier is required to take out 'land transport insur-
ance' (Articles 54-62 of the Insurance Contract Act
50/1980 of 8 October (henceforth ICA)), technically
speaking, there is no single passenger land transport in-
surance.' Conversely, depending on the means of trans-
port used, the insurance that the carrier, and, when appro-
priate, the owner of the vehicle, must take out is different.
In the transport carried out by taxi or rental car with
driver, the only compulsory insurance is the civil liability
insurance for the use and circulation of motor vehicles,
usually known as 'compulsory automobile insurance',
which is regulated by Royal Legislative Decree 8/2004
of 29 October, which approves the revised text of the Act
on Civil Liability and Insurance in the Circulation of
Motor Vehicles (henceforth CLICMVA), along with its
development regulation, approved by Royal Decree
1057/2008 of 12 September.
Compulsory automobile insurance is also compulsory
in transport by bus or coach, although not by rail (as per
Article 1.2.a of Royal Decree 1507/2008 of 12 September).
Moreover, bus or coach companies and railway undertak-
ings must take out compulsory passenger insurance, as
required by Act 16/1987 of 30 July on the Administrative
Organisation of Land Transport (henceforth AOLTA),
amended by Act 9/2013, of 4 July (Article 21(1)
AOLTA), and whose regulation has been carried out by
Royal Decree 1575/1989 of 22 December, which approves
the Regulation on Compulsory Passenger Insurance
(henceforth CPIR). Such bus or coach and rail companies
must have the relevant civil liability insurance, to which
the AOLTA also alludes by reference to the European
regulations that impose its subscription, that is, Regula-
tion (EU) 181/2011 of the European Parliament and of
the Council of 16 February 2011 concerning the rights

of passengers in bus and coach transport and amending
Regulation (EC) 2006/2004 [2011] OJ L 55/1 (henceforth
Regulation (EU) 181/2011 of 16 February), on the one
hand, and Regulation (EC) 1371/2007 of the European
Parliament and of the Council of 23 October 2007 on rail
passengers' rights and obligations [2007] OJ L 315/14
(henceforth Regulation (EC) 1371/2007 of 23 October),
on the other hand (Articles 21(2) and 23 in fine AOLTA).3
2.    Transport by rail
2.1. The impact of Regulation (EC) 1371/2007 of
23 October on the carrier's liability regime
Currently, passenger protection in rail transport is regu-
lated in the EU by Regulation (EC) 1371/2007 of
23 October. This will be replaced by Regulation (EU)
2021/782 of the European Parliament and of the Council
of 29 April 2021 on rail passengers' rights and obligations
[2021] OJ L 172/1 (henceforth Regulation (EU) 2021/782
of 29 April), applicable as of 7 June 2023 (Article 40),
except for its Article 6.4, which refers to the procedures
for public procurement of new rolling stock and for the
improvement of existing rolling stock that requires a new
authorization for its placing on the vehicle market, appli-
cable as of 7 June 2025 (Article 41).
Nevertheless, Regulation (EC) 1371/2007 of 23 October
does not set the amounts of the rail carrier liability cover-
age for damages caused to passengers4 and their luggage,
referring for that purpose to national laws. It is limited
to providing that railway undertakings have to be 'ad-
equately insured or to make equivalent arrangements for
cover of its liabilities under this Regulation' towards
passengers (Article 12.1), in accordance with the provi-
sions of Article 9 of the Council Directive 95/18/EC of
19 June 1995 on the licensing of railway undertakings
[1995] OJ L 143/70 -now Article 22 of Directive
2012/34/EU of the European Parliament and of the
Council of 21 November 2012 establishing a single
European railway area [2012] OJ L 343/32 (henceforth

DOI 10.7590/187714622X16487115009316 1877-1467 2022 European Journal of Commercial Contract Law
Silvia Boboc is a Teaching assistant of Commercial Law at Jaume University (Spain).
1.   The present study has been carried out under the research project 'Implicaciones legales del uso de innovaciones tecnol6gicas en el
transporte: problemas actuales y retos de futuro' (Ref UJI-B2019-46), financed by the Jaume I University (main researcher: A Puetz).
2.   With regard to the classification of transport insurance, see MJ Morillas Jarillo, 'Seguro de transporte' (1997) 9 Cuadernos de Derecho
judicial 393, 401-404.
3.   The amount of such insurance constitutes an operating expense, which can be passed on to the passenger in the corresponding transport
charges (Article 21.3 AOLTA).
4.   In this respect, see 'Interpretative Guidelines on Regulation (EC) No 1371/2007 of the European Parliament and of the Council on Rail
Passengers' Rights and Obligations' (Communication from the Commission) 2015/C 220/01; ibid, 'Report on the Application of Regu-
lation (EC) No 1371/2007 of the European Parliament and of the Council of 23 October 2007 on Rail Passengers' Rights and Obligations'
(Report from the Commission to the European Parliament and the Council), Brussels, 14 August 2013, COM(2013) 587 final.

European Journal of Commercial Contract Law 2022-1

Silvia Boboc'

1