Risk protection arrangement proposed motor vehicle cover

30th November 2021

The Department for Education is considering providing Motor Vehicle Cover to academy trusts and local-authority-maintained schools through the risk protection arrangement (RPA) as an alternative to commercial insurance.

The key points of our response are:

  • We strongly disagree with this entire proposal. There is a healthy functioning motor insurance market for school minibuses and absolutely no need for intervention.
  • There will be a significant exposure to the taxpayer for multiple personal injury claims (this is amplified by the changes to the personal injury discount rate).
  • The RPA does not have the claims data to quantify and price the risks that it will be accepting, bringing uncertainty and risk to both the schools and the taxpayer.
  • Schools would lose vital risk management advice provided by the industry.
  • There are other much more important priorities for RTA changes like overcoming the Vnuk ruling.
  • By excluding the larger 17 seat minibuses this ‘selection against’ them will have a negative effect on their market as they cannot be part of the school’s wider fleet.
  • If implemented, UK insurance broker businesses will lose these valued clients and the school would lose their vital risk management advice.

You can read the full response here.

We will provide an update to members once the consultation outcome has been published.