Parliament is set to strike down EU legislation which forces ride-on mower drivers to pay extra on their car insurance. Grant Shapps hailed the move as a Brexit dividend saving Brits around £50.
The UK cannot rely on Brexit to eliminate the potential extra premium costs associated with the Vnuk ruling – the government must legislate, says law firm partner
Firstly, the 1988 Road Traffic Act states that compulsory motor insurance is required for vehicles that are used on roads and public places only, however the CJEU ruled that insurance should be applicable for vehicles used in any area, including both public and private land.
Ryman-Tubb believes that compulsory insurance for vehicle use on private land would be difficult to enforce and may lead to greater fraud.
The second key issue is around the definition of ‘motor vehicle’ – again the UK and CJEU have different ideas here. The Road Traffic Acts describes a motor vehicle as a mechanically propelled vehicle intended or adapted for use on roads, explained Ryman-Tubb, however the CJEU has a broader definition.
Britain’s insurance industry would have been liable for nearly £2billion in extra costs, which the Government expected would be passed onto customers.
The DfT described the decision to formally remove the impact of the Vnuk ruling from British law as a “clear win for motorists in Britain” and claimed it will protect motorsports.
It stated: “The EU’s rules would have meant any motorsports collision involving vehicles from go-karting to F1 would have been treated as regular road traffic incidents requiring insurance. This could have decimated the industry due to the additional insurance costs of roughly £458million every single year.
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