Unless the European Commission clarifies that compulsory motor insurance only applies to vehicles used on public roads, there could be significant disruption in the UK. That is the verdict of a host of insurance industry bodies following an ‘unfair’ ruling concerning a tractor.
The European Court of Justice previously ruled that compulsory motor insurance could have provided compensation for injuries suffered by a Slovenian farm worker using a tractor while on private land. In the UK, where compulsory motor insurance only applies to vehicles when in traffic, domestic law would have to be revised to accommodate the ruling – that is, if the European Commission does not step in to make a clarification.
The Association of British Insurers (ABI), the British Insurance Brokers' Association (BIBA), the Motor Insurers’ Bureau, the International Underwriting Association, the Lloyd’s Market Association, and Lloyd’s have warned that extending the scope of compulsory motor insurance would cause not only disruption, but significant additional costs.
“We recognise that victims of accidents on private land should be entitled to compensation, but making insurance compulsory for off-road vehicle users is unnecessary, unworkable, and unfair,” said Ben Howarth, ABI senior policy adviser for motor and liability.
He continued: “There is no evidence that this extension is needed in the UK. And it could prove the next lucrative hunting ground for claims management companies, encouraging claims that end up being paid for by all motorists through higher premiums.”
The industry groups argued that had the accident happened in the UK, it would have been covered through employers’ liability insurance or public liability insurance.
Enforcement would also be ‘virtually impossible’, given that vehicles such as quad bikes, golf buggies, mobility scooters, and motorised lawnmowers do not need to be licenced and are not on any public database.
“It would be difficult for the police and insurers to access private land to ensure compliance and to assess any accident. This could increase the risk of uninsured driving and fraud,” read the statement posted by the ABI.
Howarth said the European Commission can easily resolve the issue by specifying that the Motor Insurance Directive does not apply to vehicles used on private land. “It needs to end the uncertainty by doing this now,” he said.
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