Positive developments on motor insurance from EU Commission

9th June 2016

BIBA was delighted to receive a call from the office of Lord Hill, the European Commissioner for Financial Stability, Financial Services and Capital Markets Union, advising us that the European Union Commission intends to put forward our preferred solution to the problem for motor insurance resulting from the ruling on the Vnuk case.

At the 2016 BIBA conference in Manchester BIBA CEO, Steve White said; “BIBA has been working with interested parties in the insurance industry and motor sports sector since the judgement which had the potential to have far reaching implications. If not resolved it brings into the scope of compulsory motor insurance some 43 different types of vehicle that previously didn’t need insurance including those used off the public roads for motor sport.

“BIBA has worked with the Department for Transport, our European federation BIPAR and Commissioner Hill’s office to seek a surgical amendment to the Motor Insurance Directive to redefine the directive to apply to only those vehicles used in traffic.  The fact that this is now being put forward in a European Commission roadmap for better regulation is a big win for us and we look forward to the outcome.”

BIBA’s 2016 manifesto called for a surgical amendment to be made to the Motor Insurance Directive to exclude motor sports and other anomalies from the directive and mitigate the unintended consequences of the judgement and this is the first step in fulfilling this call.

Graeme Trudgill, Executive Director at BIBA concluded; “This has involved a lot of stakeholder co-operation including the ABI, the Motorsport Associations, BIPAR and the MIB and we are extremely pleased to get this far. There is still a lot to do to get this over the finish line, but we will do all we can over the coming months support the progress of this initiative.”

  • ENDS   –

Notes to editors

  • Summary of the Vnuk case

As a result of an accident involving a tractor on farmland in Slovenia Mr Vnuk suffered injury. It was subsequently found that there was no insurance cover in place to provide compensation. The case was taken through the courts and ultimately it was ruled that motor vehicle ‘use’ should mean ‘any use of a vehicle that is consistent with the normal function of that vehicle’.  The implication of the ruling for the UK is that vehicles such as, sit-on mowers, fork-lift trucks and golf buggies cannot simply be covered, as they can be now, under a public liability policy, but will require a Motor Insurance Road Traffic Act cover. Similarly, motor racing events will require competitor-to-competitor liability insurance – an area of cover that does not currently exist for this type of event. In liaison with stakeholders this issue was recognised by the European Commission which has been developing an amendment to the Motor Insurance Directive to neutralise the damaging effect of the judgement.  This is now confirmed by the announcement from Lord Hill’s (the EU Commissioner) office.

  • For further information please contact:

BIBA press office:

Pam Quinn, Communications Manager

020 7397 0223

quinnp@biba.org.uk

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