ABI criticizes compulsory off-road vehicle insurance

The Association of British Insurers (ABI) said on Aug. 24 that the prospect of owners of off-road vehicles needing insurance is unnecessary, unworkable and unfair.

Owners of vehicles like golf buggies and motorised lawnmowers could be forced to take out third-party insurance following a ruling by the European Court of Justice.

Owners of vehicles used on private land, such as quad bikes, golf buggies, mobility scooters and motorised lawnmowers, together with participants in motor sports would all be affected unless the European Commission takes urgent action insurance organisations warned.

If the Commission fails to act then the UK government will need to change domestic law and extend the scope of compulsory motor insurance for the time the UK remains in the EU and during any exit transition period. This would lead to significant disruption and additional costs, according to the statement.

The European Court of Justice (ECJ) in 2014 ruled that compensation for injuries suffered by a Slovenian farm worker, Damijan Vnuk, by a tractor while on private land should have been covered by compulsory motor insurance. In the UK motor insurance is compulsory for vehicles used on public roads, but not on private land.

The ABI, together with the British Insurance Brokers Association, Motor Insurers’ Bureau, International Underwriting Association, Lloyd's Market Association and Lloyd’s, are urging the EU Commission to resolve this by implementing its proposal to clarify that compulsory motor insurance only applies to vehicles when in traffic and not those used on private land.

Get the latest re/insurance news sent to your inbox every day -  Sign up to our free email newsletters

Today’s stories

AXIS Capital partners with start-up Plug and Play to boost innovation

Verisk Analytics in $151m LCI acquisition

SCOR opens P&C representative office in Kenya, names head

JLT Re appoints Thailand managing director from Willis

UK non-life insurers to raise premiums to offset claims inflation

Munich Re launches parametric insurance product with JLT

Tropical storm Harvey could turn into hurricane in Texas

Don't miss our insurtech email newsletter - sign up today