The Lloyd’s Market Association (LMA) has cautioned the government against taking abrupt action over a court ruling that could shake up motor insurance in the UK.
The government previously called for input from the motor insurance sector following the 2014 “Vnuk judgement,” a European Court of Justice decision that broadened the scope of compulsory motor insurance.
The LMA has urged the government to delay action in connection with the court ruling until further consultation is made to consider how the possible increased cost and risk of fraud are mitigated.
The Department for Transport has proposed two actions, the first of which is a “comprehensive option” that will require UK insurers to comply with the European law as laid out by the “Vnuk judgement.”
Meanwhile, the second proposal is an “amended directive option” that would broaden the definition of a motor vehicle, but crucially, only require drivers to hold third party insurance on land that the public has access to, and not private land.