Could proposed EU insurance rules hit Formula One?

Could proposed EU insurance rules hit Formula One? | Insurance Business

Could proposed EU insurance rules hit Formula One?

The British Insurance Brokers’ Association (BIBA), which has expressed its concerns relating to the motor insurance amendments being pushed by the European Commission, previously mentioned ‘motorsports’ in its reaction – with BIBA technical services manager Martin Bridges explaining that “relating the need for compulsory motor insurance to rely on operating in respect of any ‘use, intended normally as a means of transport, consistent with the normal function of the vehicle… irrespective of the terrain…’ will potentially still bring many more vehicles into scope from mobility scooters to motorsports because of the possible legal interpretation of the definition of ‘transport’.”

Now we’re letting you in on what the FIA (Federation Internationale de l'Automobile) thinks, and let’s just say the motorsport governing body isn’t too pleased with the European Commission’s proposal. 

“The modifications proposed by the European Commission unfortunately do not meet the FIA’s expectations,” it said in a statement. “Although the FIA and the entire motorsport community share the European Commission’s objective to better protect the victims of motor vehicle accidents, this proposal could lead to motorsport events being dependent on the will of the insurance companies to cover them.”

Meanwhile a report by EURACTIV said if the proposed changes are enacted, the implication would be that race circuit crashes would be no different from road traffic accidents. It also shone a spotlight on the potential cost impact, citing the prospect of motorsport becoming unviable, what with Formula One circuit operators shelling out huge amounts, as it is, for race fees. 

“The FIA and the motorsport stakeholders very much look forward to continuing the exchange with the European Institutions, in order to reach a solution that would still enable millions of drivers across Europe to continue practicing their passion, with the best possible protection,” added the FIA, which believes that extending the scope of the Motor Insurance Directive to motorsport “could potentially be highly detrimental, due to the unintended economic impact on insurance policy premiums.”

 

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