The Autonomous and Electric Vehicles Bill, which was introduced in the House of Commons last October, has proceeded to Royal Assent after all of the amendments proposed by the House of Lords were accepted – a welcome development, in the view of the British Insurance Brokers’ Association (BIBA).
“We’re pleased that the Bill has now been enacted,” commented BIBA executive director Graeme Trudgill. “This legislation will enable the insurance industry to offer insurance policies that will provide cover for autonomous vehicles – whether being driven in a manual mode, or in a fully automated mode once the technology allows.
“Importantly this will lead to healthy competition in the insurance market as consumers will have the choice of where they buy their insurance and will not be tied to only having cover provided by their vehicle manufacturer.”
The parliament said the intention behind the Autonomous and Electric Vehicles Bill is to emphasise that, in the event of an accident, the compensation route remains within the motor insurance settlement framework and not against a manufacturer via product liability.
From the government’s perspective, “answering the insurance questions sooner rather than later will encourage manufacturers to develop transport technology in the United Kingdom with the confidence that they can exploit market opportunities.”
According to a joint report released by the Association of British Insurers and Thatcham Research in June, automated vehicles will be available from the mid-2020s.
“It’s important that we are prepared well in advance of fully automated vehicles hitting the road and we welcome the opportunity that the Department for Transport has given to BIBA in being able to shape the legislation at an early stage,” said Trudgill.
