Britain to avoid motor insurance red tape after Brexit - trade body

LONDON (Reuters) - The UK government plans to keep Britain within an international motor insurance accord, cutting red tape for drivers and hauliers travelling in European Union states after Brexit, an insurance trade body said on Thursday.

"The DfT (Department for Transport) wrote to the ABI (Association of British Insurers) this week stating that the government has formally decided to keep the UK within the Motor Insurance Free Circulation Zone," the ABI said in a statement.

The ABI said that, once this decision was approved by the European Commission, "drivers, haulage operators and insurers will not face the considerable administrative disruption associated with issuing Green Cards or having to face border checks".

The green card is based on an international accord backed by 47 countries, including all EU states, and is administered in Britain by the Motor Insurers' Bureau.

Another trade body, the British Insurance Brokers' Association, said the decision would be positive for the 2.5 million private and commercial motorists in Britain travelling in the EU annually.

(Reporting by Carolyn Cohn and Huw Jones; Editing by Kevin Liffey)