‘Unintended consequences’ of EU ruling

The Association for British Insurers (ABI) has responded to EU regulations stipulating that all motorised vehicles must be insured.

The EU directive would include everything from golf buggies, ride-on lawnmowers, mobility scooters, dodgems, ride-on children’s toys and even electrically-assisted bicycles. It has already been enshrined in EU law but is now being discussed at a national level as it contravenes many country’s own laws.

Ben Howarth, senior policy adviser for Motor and Liability at the ABI, said, ‘There is no need for compulsory insurance for many of the vehicles potentially brought into scope by how the ECJ’s Vnuk judgement has been interpreted.

‘A particular concern is how such a compulsory insurance requirement would be enforced, especially for off-road vehicles that are not licensed or registered. Therefore, we will be working with the industry to respond to the detailed issues raised in this consultation.

‘The European Commission also began a consultation exercise on this issue earlier this year, and we hope that this will provide greater clarity on some of the most challenging potential unintended consequences of the ruling.’