Commons Sense

House of Commons · Westminster Hall

Motor Insurance: Court Judgments

22 September 2021 · 6 other contributors · 8,100 words

Opened by Theresa Villiers Con Chipping Barnet

Responding minister: Trudy Harrison

TransportBrexit

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Theresa Villiers raised concerns about motor insurance: court judgments in Westminster Hall. A government minister responded.

Key points

  • The European Court of Justice judgment in Vnuk v. Triglav extends compulsory motor insurance to vehicles involved in accidents on private land, including those not traditionally covered by road traffic laws.
  • This change is causing significant costs for the UK compensation fund and leading to higher insurance premiums for motorists.
  • The minister acknowledged the debate and noted potential annual costs of 2 billion to the insurance industry, likely resulting in increased premiums of around 50 for customers.

Key requests to Government

The lead MP urges the government to bring forward their own Bill in Government time to repeal Vnuk v. Triglav from UK law, facilitating a more proportionate regulatory framework.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Theresa Villiers Con Chipping Barnet

The European Court of Justice judgment in Vnuk v. Triglav has led to the extension of compulsory motor insurance to a very broad range of vehicles involved in accidents on private land, including those not traditionally covered by road traffic laws. This change is causing significant costs for the UK compensation fund and leading to higher insurance premiums for motorists. Concerns include potential fraud opportunities due to unclear circumstances of incidents and financial burdens on young drivers and businesses recovering from lockdown.

Other contributors (6)
  • Alan Brown SNP Cowdenbeath

    Mr Brown highlighted the wide-ranging debate, touching on EU retained law and the Vnuk ruling. He expressed scepticism about introducing primary legislation for motor insurance reform when other energy-related legislation is delayed. He also pointed out that increased premiums are regressive and can lead to more uninsured drivers. Mr Brown questioned the impact of cuts to universal credit on driving ability and asked the Minister to ensure no unintended consequences arise from changes to compulsory insurance for motor sports. The MP inquired about ensuring no loopholes are created when implementing new insurance regulations, particularly regarding motorsports categories.

  • Bill Cash Con Stone

    Mr Cash discussed the potential for government support of a private Member's Bill by my hon. Friend the Member for Wellingborough to address motor insurance issues, citing precedents such as his own International Development (Gender Equality) Act 2014 which received full government backing despite its initial low position in the ballot order. He also highlighted the need for legislative change to clarify matters related to EU retained law and road traffic legislation.

  • Craig Mackinlay

    The MP asked the Minister if her Department is reviewing other European Court of Justice judgments to remove instances like the Vnuk case from UK law.

  • Greg Knight Con East Yorkshire

    Mr. Greg Knight stated that salvation may be on its way from his hon. Friend the Member for Wellingborough, who has a Bill before the House to address the issue discussed in the debate. Agrees with his hon. Friend and suggests that the Bill should go through on 22 October if the Government do not object to it.

  • Huw Merriman Con Bexhill and Battle

    Mr. Huw Merriman thanked the right hon. Friend for securing the debate and expressed concern that the £50 saving on insurance premiums might be loaded back as a result of the judgment.

  • Kerry McCarthy Lab Bristol East

    The MP acknowledged the Vnuk case's impact and the importance of reviewing insurance schemes while maintaining workers' rights. She also highlighted the need to address road maintenance issues, citing an £11 billion pothole repair backlog and a 22% reduction in road maintenance spending due to Government funding cuts. Kerry McCarthy expressed concern over rising costs affecting drivers already impacted by furlough end, universal credit cut, and national insurance hike.

Government Response

Trudy Harrison

The minister acknowledged the debate on motor insurance court judgments and highlighted that implementing the EU Court of Justice's ruling in the Vnuk case would have had significant financial repercussions for insurers and consumers. She noted potential costs of £2 billion annually to the industry, likely passed on to customers as increased premiums by around £50 each. The minister also pointed out that this ruling would have affected motorsports, leading to a prohibitive cost of £458 million per year and potentially making it unviable for most in the sector. She stated that the Government has committed to removing Vnuk from GB law through legislation when parliamentary time allows. The Bill proposed by my hon. Friend the Member for Wellingborough (Mr Bone) aims to comprehensively remove the effects of Vnuk and Lewis from GB law without substantive downsides, ensuring consistency in third-party motor insurance requirements and addressing enforcement complications. She noted that implementing Vnuk would have necessitated a range of vehicles to be registered on the DVLA database with license plates.

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