12 April 2017
LMA urges Government rethink over ‘Vnuk’ judgement
London, United Kingdom – 12 April 2017 - The Lloyd’s Market Association (LMA) has submitted a detailed response to the Department for Transport’s (DfT)Technical Consultation on Motor Insurance. The UK Government called for input from those involved within the motor insurance industry following the 2014 ‘Vnuk judgement’, a European Court of Justice decision that broadened the scope of compulsory motor insurance. Various vehicles currently not covered by the UK’s Road Traffic Act could be brought into scope and use of vehicles on private property may also require insurance in the future.
The DfT is considering two options; a ‘comprehensive option’, which will require UK insurers to comply with the European law as laid out by the ‘Vnuk judgement’, and an ‘amended directive option’. This second option would broaden the definition of a motor vehicle, but crucially, only require drivers to hold third party insurance on land the public has access to, and not private land.
In its response to the Government’s consultation the LMA has challenged the DfT’s ‘comprehensive option’ as unworkable, and has also raised concerns about the ‘amended directive option’. The LMA is concerned that the ‘amended directive option’ will be difficult to enforce and could lead to increased fraud, resulting in higher costs for insurers and ultimately consumers.
The LMA has recommended the Government delays taking action until further consultation is undertaken to consider how the possible increased cost and risk of fraud are mitigated.
In addition, the LMA has also recommended to the DfT that the existing Road Traffic Act laws should be retained once the UK has left the European Union.
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Notes to Editors
For further information please contact:
James Milne, Communications Manager
Lloyd’s Market Association
T 0207 327 8405
About the Lloyd’s Market Association (LMA)
Formed in 2001 and located in the heart of the Lloyd’s Building in the City of London, the Lloyd's Market Association represents the interests of the Lloyd’s underwriting community. All underwriting businesses at Lloyd’s are members, together managing gross premium income of around £30billion per annum.
For more information visit: www.lmalloyds.com.