Removal of Vnuk from UK law

The motorsport sector is relieved to learn the EU Commission announced last week that it would exclude vehicles intended exclusively for motorsport from new insurance rules, known as "Vnuk law".

Another development is the UK Government has announced it intends to remove the effects of the 2014 European Court of Justice’s ruling in the Vnuk case from UK law. The very latest is that Peter Bone, the Hon. Member for Wellingborough and ultra-Brexiteer, has tabled a private members bill entitled ‘Motor Vehicles (Compulsory Insurance)’ which aims to deliver the necessary legislative change.

Vnuk
The UK Government has been clear since the Vnuk ruling by the European Court of Justice in 2014 that it does not agree with it. The decision directed the unnecessary extension of the provisions requiring motor insurance to private land as well as a greater range of vehicles that potentially includes motorsports, agricultural machinery and light electric vehicles.

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EU Vnuk Legislation – latest update from MSUK
On 21st February 2021 Motorsport UK announced that its considerable efforts alongside the UK Government to defeat the threat of the Vnuk insurance issue had been successful. Earlier that day, the Department for Transport had confirmed that it would be taking the necessary steps to exempt the UK, and consequently UK motorsport sector, from the implications of the EU Motor Insurance Directive. MSUK article

This news was met with enormous relief because the EU rules would have meant any motorsport collision in the UK involving vehicles from karting to F1 would have been treated as regular road traffic accidents requiring insurance. The financial implications would have posed an existential threat to motorsport, risking tens of thousands of jobs in the process. There remained some concern that implementation of the Vnuk law in Europe would affect UK members competing in Europe and significantly increase insurance premiums.

In further positive news, the EU Commission announced that they would exclude all vehicles exclusively intended for motorsport from the Vnuk legislation. EU press release

There remains a need for clarity on the matter of dual-use vehicles (road registered car used in competition) and MSUK will provide a further update once that becomes available. In the meantime, those competitors should actively check the extent of cover provided by organisers as part of their pre-event preparations and entry process, and ensure that they have adequate valid insurance cover for all road use within the EU, as with the UK. 200625
European motor insurance directive: removal of Vnuk from UK law
On 21st February 2021, the UK Government announced it intended to remove the effects of the 2014 European Court of Justice’s ruling in the Vnuk case from GB law. The very latest is that Peter Bone, the Hon. Member for Wellingborough and ultra-Brexiteer, has tabled a private members bill entitled ‘Motor Vehicles (Compulsory Insurance)’ which aims to deliver the necessary legislative change.

To ensure that the Vnuk ruling does not apply in the UK, and it sounds as though the Government is going to give it a fair wind to get it through and enacted.
GOV.UK