Brief update on legislation in NI to remove Vnuk liabilities from motor insurance

UPDATE 2/3/22: The two not-quite matching Motor Vehicles (Compulsory Insurance) Bills continue to progress. The House of Lords’ scrutiny of the Westminster Bill (which applies to England & Wales and Scotland) is due to start on 18 March. Yesterday, shortly before 6pm, the NI legislation passed the formality of its Further Consideration Stage and may well complete its remaining stages before its mainland counterpart is debated in the Lords in a couple of weeks.

FURTHER UPDATE 7/3/22: The Assembly’s Final Stage debate on the Bill this afternoon lasted barely ten minutes. The Bill was duly passed and it will now take effect after it receives Royal Assent. Just to recap, it ends Vnuk-related liabilities in NI and in so doing avoids annual additional cost estimated at £50 per motor insurance policy.


UPDATE ADDED 22/2/22: Update on Motor Vehicles (Compulsory Insurance) Bill (NI version): it passed Consideration stage on 22 February and Further Consideration will be on 1 March. All remaining stages could be taken during March and, if so, this will become law in May, ending Vnuk liabilities in NI.


The Bill was introduced on 7 February 2022 and published here on the same day. Its policy aims are the same as legislation in Westminster (i.e. to re-set the scope of compulsory motor insurance to that in operation before the Vnuk decision). The NI Bill was back before the Assembly this morning, where Members agreed that it should proceed via Accelerated Passage (AP), a process which requires cross-community support.

The Bill’s second stage debate was also taken and agreed this morning. It now proceeds directly to consideration stage next week – AP means that the Committee stage is bypassed – and looks increasingly likely to be completed within the limited time that remains of the Assembly’s current mandate (given the elections scheduled in early May).


Written by Alistair Kinley at BLM (Alistair.Kinley@blmlaw.com)

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