Under which condition must policies comply with the Third EU Motor Insurance Directive?

The correct choice indicates that policies must comply with the Third EU Motor Insurance Directive if they exceed the minimum cover required by the home country. The directive sets out standards to ensure that motor vehicle insurance policies provide a minimum level of coverage for third-party liabilities across member states.

When a policy exceeds this minimum requirement, it must still align with the overarching framework established by the directive, which ensures consistency and protection for all parties involved. This helps to maintain a safe and fair environment for drivers throughout the European Union. Policies that exceed the minimum coverage levels often do so to offer additional safety nets to insured parties, but they still must adhere to the regulations set forth by the directive.

In contrast, the other options refer to specific features of a policy that do not directly relate to the compliance requirements established by the directive. Unlimited cover, covering the loss of use, or including all risks might be beneficial for the policyholder, but those characteristics alone do not determine whether a policy needs to comply with the Third EU Motor Insurance Directive. Compliance is primarily concerned with meeting or exceeding minimum coverage levels mandated by the home country regulations.