European UnionThe guarantee fund rejected my claim because the vehicle was used in a crime. Is this valid?
Yes, the guarantee fund can lawfully reject your claim if the vehicle was used in a serious crime — EU law permits exclusion where the victim was involved in or consented to the criminal use.
What the Law Says
EU Directive 2009/103/EC sets the framework for motor insurance and guarantee funds across Member States. It allows national guarantee funds to refuse compensation in specific, strictly interpreted circumstances — including when a vehicle was used in a serious crime and the victim was involved or consented.
Article 12(2)(b) of Directive 2009/103/EC explicitly permits Member States to exclude guarantee fund liability 'where the vehicle was used in the commission of a serious crime and the injured party was involved in or consented to such use.' This is not automatic — it requires proof of both the serious nature of the crime and the victim’s involvement or consent.
The term 'serious crime' is not defined uniformly in the Directive but has been interpreted by the Court of Justice of the EU (CJEU) to mean offences that are punishable by imprisonment of at least three years under national law — or equivalent gravity — and that directly relate to the use of the vehicle.
Importantly, the burden of proof lies with the guarantee fund. They must demonstrate, on objective evidence, that the victim’s involvement or consent was real and substantial — mere presence or passive knowledge is insufficient.
Statutory TextMember States may provide that the guarantee fund shall not be liable where the vehicle was used in the commission of a serious crime and the injured party was involved in or consented to such use.
— Directive 2009/103/EC, Art. 12(2)(b) — Exclusions from cover
What Courts Have Said
The Court of Justice of the EU has clarified the strict limits on applying Article 12(2)(b), emphasising proportionality, individual assessment, and protection of victims’ rights.
The CJEU ruled that exclusion under Art. 12(2)(b) requires concrete evidence of the victim’s active participation or informed consent — not just knowledge of illegal activity. National courts must assess each case individually.
The Court held that ‘serious crime’ must be assessed objectively against national penal thresholds; using a stolen car in a robbery qualified, but minor traffic offences did not.
What to Do
Request written reasons from the guarantee fund citing specific facts and legal basis (e.g., which crime, how you were involved/consented).
Gather evidence refuting involvement or consent — e.g., witness statements, alibi, police reports showing you were a victim, not a participant.
File an appeal within 10 days of rejection (deadline varies by Member State; check national transposition law).
Contact your national Financial Ombudsman or consumer protection authority for free assistance.
If denied again, consider judicial review — courts must verify whether the fund applied Art. 12(2)(b) lawfully and proportionately.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.