European Parliament agrees to motor insurance reform while Westminster fails to do so

By way of an update to last Monday’s post, we can confirm that MEPs in Strasbourg approved proposed changes to the Motor Insurance Directive (the detail is here) whereas the different and separate legislation in Westminster failed to secure a second reading debate. For all practical purposes, that looks to have virtually no chance of making further progress as things now stand.

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Vnuk: technical legislation aimed at reversing the decision has been published

Finally, we have the text of the Bill which seeks to remove the effects of the Vnuk (etc) line of European cases from UK motor insurance law. It is not a government Bill (more on why not in my blog from last month) and will therefore be subject to the procedural vagaries and uncertainties of private member’s legislation in the Commons.

At first sight, the Bill looks to be technically sound, in seeking to remove the current interpretation of the EU Motor Insurance Directive (article 3 “use” in particular) from the laws of England & Wales and Scotland (road traffic law in Northern Ireland is devolved).

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“Deal reached on new rules to better protect road accident victims”

This is the headline from yesterday’s press release from the European Parliament which provides the outline of an agreement in principle between the Parliament and the Council on the key measures to take forward in the reform of the Motor Insurance Directive. The stand-out feature is the scope of compulsory insurance – a controversial area as a result of the Vnuk case – on which there is apparent consensus on excluding motorsports and ebikes as well as the prospect of allowing for non-standard non-road vehicles to be excluded.

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