EU TO FORCE INSURANCE ON LAID-UP CARS
European lawmakers push ahead with rules forcing your classic to be insured, even when it’s off the road – despite UK protests
The European Commission has decided to push ahead with controversial reforms that would force classics to be insured, even when off the road – despite complaints from experts across the UK.
The reforms of the EU-wide Motor Insurance Directive will increase costs for classic owners and event organisers if brought into force.
The Department for Transport (DfT) is pushing for an amended version of the directive rather than the comprehensive one now favoured by Brussels. A DfT spokesman said: ‘The UK has a strong system of insurance and access to compensation and we oppose any measures which impose an unreasonable burden on the public.’
Late last month, the European Commission pushed ahead with amendments to the Motor Insurance Directive that could price classic car enthusiasts out of their hobby.
A May 2018 EC proposal wants to apply the controversial 2014 Vnuk Judgement to its fullest extent, requiring historic vehicles to be insured at all times, whether they are on the road or not.
The deeply unpopular ‘comprehensive’ interpretation of the Vnuk ruling insisted on by the European Commission would mean that cover was required for classics on SORN, even if the car was on private land.
The European Commission has ignored repeated calls for a socalled ‘amended’ application of the Vnuk Judgement ( limiting its requirements to vehicles used on the public roads) for more than two years.
UK stakeholders in the motorsport and insurance industries have condemned the move; a technical document published by the Department for Transport arguing for the (amended) interpretation of the Vnuk judgement was published in December 2016. Last year, a public consultation (reported in CCW, 18 October 2017) made it clear to the EU and EC that unlimited thirdparty cover was too costly a burden to contemplate.
Malcolm Tarling of the Association of British Insurers (ABI) said: ‘The European Commission has let the answer to this issue slip through its fingers, by ignoring its previous workable solution. The current proposal is unworkable and unfair. It would be very difficult to enforce, and because insurers would have no reliable data to assess the risk, the market for cover could be very limited. It could prove to be the next hunting ground for those claimant lawyers that encourage frivolous and exaggerated personal injury claims that end up being paid for by all motorists through higher premiums.’
The ABI is a not-for-profit organisation, which, among other roles, maintains a pot of funds to compensate policyholders involved in accidents with uninsured drivers.
Implications for motorsport events – especially in light of the recent deregulation of closed road access – remains an ongoing concern, from grass-roots auto testing to massive free-to-visit shows like Coventry MotoFest. Worries remain that the former would be priced out of competing, and that the latter would have to pass costs on to the public.
Motorsport Industry Association (MIA) CEO, Chris Aylett, said: ‘I am hopeful we will soon receive a further statement which specifically addresses the effect this new EU Commission proposal will have on the UK motorsport industry and our sport. To maintain UK employment of 50,000 or more in our industry, MIA will work hard to secure a sensible amendment to this latest proposal which, to my amazement, chooses to ignore the wishes expressed in the 3000-plus responses given to their first review.’