Remember that
European Court of Justice ruling which said compulsory motor insurance could have provided compensation to a Slovenian farm worker who suffered injuries while using a tractor on private land? The British insurance industry has since expressed its opposition; and now one of the trade bodies has issued another warning.
The International Underwriting Association of London (IUA), responding to a review of the European Motor Insurance Directive (MID), stressed its position that the MID must not be expanded to include liability for accidents taking place on private property. The IUA cited possible – all unfavourable – outcomes.
Since under UK law compulsory motor insurance only applies to vehicles when in traffic, the trade body said “protection provided under the legislation can only be effectively applied and enforced on public roads.” Expanding the scope to include the likes of lawnmowers on private land, warned the IUA, would result in not only widespread uninsured driving but also fraud.
While the trade body acknowledges the need for compensation in events involving such vehicles, it told the European Commission that mechanisms like employers’ liability insurance should be adequate. In August, Association of British Insurers (ABI) senior policy adviser for motor and liability Ben Howarth said making insurance compulsory for users of off-road vehicles was unnecessary.
“The complexity of extending the current motor insurance regime to many millions of additional vehicles would risk reducing the accountability of employers or event organisers as they may seek to pass responsibility on to individual drivers,” stated IUA director of market services Chris Jones. “It would also be difficult and costly to enforce.”
Jones added: “Furthermore, increased levels of fraud and non-compliance, rising claims volumes and additional calls on the Motor Insurers’ Bureau would all, inevitably, pressure premium rates across the motor insurance and reinsurance market.”
Meanwhile the IUA, in its consultation response, expressed support for the proposed improvement of cross-border exchange of information on number plates and linked insurance policies.
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