UK bins ‘Vnuk’ motor insurance law

News story released on the GOV.UK website on 21st February 2021. Link

Read the Government Actuary Department research about the Vnuk decision and its effect on domestic motor insurance. More

Spotted by: Nic Houslip
Posted: 210221

The UK Government plans to bin the EU’s ‘Vnuk’ motor insurance law which requires motor insurance even on private land for a wider range of ‘vehicles’, including ride-on lawnmowers and mobility scooters. The move will ensure every British driver is spared an estimated £50 annual increase in their motor insurance premium. The announcement on the GOV.UK website says the "had the EU law been implemented in Great Britain, it would have meant the insurance industry would have been liable for almost £2 billion in extra overall costs. These costs would likely have been passed onto their customers – British road-users. Now we have left the EU, the measures no longer need to be implemented, helping road-users across the country avoid increased insurance costs.

Bypassing Vnuk will also protect the existence of the UK’s world-leading motorsports industry
The EU 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 cover. This could have decimated the industry due to the additional insurance costs of roughly £458 million every single year. Scrapping the rules will save the industry from potential collapse and secure hundreds of thousands of jobs in the sector in the process.