Compulsory motor insurance: UK government to reverse Vnuk and related EU case law

22 Feb 2021

Yesterday the Secretary of State for Transport confirmed that motor insurance law in the UK will diverge from the European model, specifically in relation to no longer following the Vnuk decision.

Once national legislation is amended, compulsory motor insurance will not extend to either (a) various non-standard motor vehicles or (b) to use of cars on private land. This approach will also remove motor sports from the scope of compulsory cover. Given that the protection offered by the MIB in instances of uninsured and untraced incidents is congruent with the legislation, it follows that the change should see (a) and (b) as no longer being liabilities to which the MIB would be required to respond.

In the six years since the decision in Vnuk we carried out a lot of work on the problems and anomalies it produced in practice. The news from the DfT is very clear and will bring those problems to an end once the changes announced take effect. In the window between Vnuk and this change being implemented there will still however be cases to be met as compulsory motor insurance claims in circumstances (a) and (b) above.

 

 

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Disclaimer: This document does not present a complete or comprehensive statement of the law, nor does it constitute legal advice. It is intended only to highlight issues that may be of interest to customers of BLM. Specialist legal advice should always be sought in any particular case.

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Alistair Kinley

Alistair Kinley

Director of Policy & Government Affairs,
London


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