The Motor Vehicles (Compulsory Insurance) Bill, which removes the European Union’s Vnuk ruling from UK legislation, is now ready to receive Royal Assent after completing the stages at both houses of Parliament – an important development eagerly anticipated by the British insurance industry.
Motor Insurers’ Bureau (MIB) chief executive Dominic Clayden commented: “The MIB welcomes the passing of the Motor Vehicles (Compulsory Insurance) Bill. We have campaigned on this issue for a number of years, and we’re delighted that the necessary legislation to remove the effects of Vnuk has now passed.
“Motorists will no longer be faced with the additional costs relating to future accidents on private land and accidents involving a range of extra vehicles – including lawnmowers and golf carts. This will save all motorists money and take us back to the common-sense approach we had before the Vnuk ruling in 2014.”
An EU law, the Vnuk rule requires golf buggies, mobility scooters, quad bikes, ride-on lawnmowers, and the like to be insured. Transport Secretary Grant Shapps called it nonsensical, adding that its sacking was a Brexit win.
“Common sense has prevailed,” asserted Association of British Insurers general insurance policy director James Dalton, “and we welcome the government’s scrapping of this unnecessary and unenforceable requirement.
“Monitoring compliance and enforcement for those using vehicles on private land, as well as establishing the circumstances of any claim, would have been fraught with difficulties and risked increasing fraud which would ultimately end up being paid for by motorists through their insurance premiums.”
Soon to be an Act, the Motor Vehicles (Compulsory Insurance) Bill was introduced to Parliament by Peter Bone MP.
British Insurance Brokers’ Association executive director Graeme Trudgill, whose camp lobbied on the matter from 2016, had this to say: “This is one of the longest-running campaign issues for BIBA and so we are delighted that, with the passing of this bill, the issue is finally resolved.
“The coming Act means British motorists avoid potential increased costs and removes significant unintended consequences in areas such as motorsports and vehicles not previously requiring motor insurance like ride-on lawnmowers.”
The controversial rule followed a European Court of Justice outcome in 2014 deeming any motorised vehicle, even on private land, as needing compulsory motor insurance.
