Vnuk: legislative change to the scope of motor insurance moves forward again

This first blog of the New Year reports further progress this afternoon in the Commons for Peter Bone MP’s presentation Bill seeking to remove the effects of the Vnuk v Zararovalnica and Lewis v Tindale decisions from English motor insurance law.

The brief debate at today’s Committee Stage ran to around only 30 minutes, following which it was approved without objection or amendment. The points made in today’s debate were, in broad terms, summaries of those aired during a debate in September in Westminster Hall on the effects of these two cases (the transcript of the Westminster Hall debate can be read in full here)

The Motor Vehicles (Compulsory Insurance) Bill now passes to Report Stage before the whole House. We expect that is also likely to be a fairly short discussion and it could take place in the next few weeks.

In closing today, Mr Bone pointed out that his Bill, if it succeeds – which looks increasingly likely – would be the first piece of primary legislation, after the UK’s exit from the EU, to alter an aspect of ‘retained EU law’.

Stakeholders in the motor insurance and motor sports sectors will really not be too interested in whether it is the first, second or third to do that but will simply want to see it take effect ASAP. As the Bill is drafted to commence two months after its Royal Assent, there might be a fair prospect of it taking effect late in the second quarter of this year. In the meantime, please feel free to get in touch if you’d like to discuss the detail of the proposed changes.


Written by Alistair Kinley, Director of Policy and Government Affairs at BLM (alistair.kinley@blmlaw.com)

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