The British Insurance Brokers’ Association (BIBA) has scored a “big win” after the European Commission expressed support for its proposal on motor insurance following the Vnuk case ruling.
In a recent statement, the brokers’ group said the EU Commission intends to put forward BIBA’s preferred solution to the problem resulting from the court decision.
BIBA said it received a call from the office of Lord Hill, the European Commissioner for Financial Stability, Financial Services and Capital Markets Union.
In the Vnuk case ruling, the EU Court of Justice extended the scope of compulsory motor insurance to the use of motor vehicles on private land.
BIBA has called for a surgical amendment to be made to the EU Motor Insurance Directive to exclude motor sports and other anomalies from the order and mitigate the unintended consequences of the Vnuk ruling.
The group said the EU Commission’s express of support is “the first step in fulfilling this call.”
“BIBA has been working with interested parties in the insurance industry and motor sports sector since the judgement which had the potential to have far reaching implications,” said BIBA CEO Steve White during the 2016 conference in Manchester.
“If not resolved, it brings into the scope of compulsory motor insurance some 43 different types of vehicle that previously didn’t need insurance including those used off the public roads for motor sport.”
White said BIBA is working with Hill’s office, the Department for Transport and BIPAR, the European Federation of Insurance Intermediaries.
“The fact that this is now being put forward in a European Commission roadmap for better regulation is a big win for us and we look forward to the outcome,” White said.
BIBA executive director Graeme Trudgill also said that they are “extremely pleased to get this far.”
“There is still a lot to do to get this over the finish line, but we will do all we can over the coming months support the progress of this initiative,” he said.
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