Is your car registered on the MID? New motor trade law could affect your insurance
The motor insurance industry could be set for a big shake up as a review begins into compensation rights for victims of accidents and damage on private land. The review was prompted from a ruling by the European courts in 2014 which resulted in the Vnuk judgement. The Vnuk case has now sparked a review of the current motor insurance law.
There’s still time to make an impact… Have your say on the discussion of new motor insurance laws. The consultation period for the Vnuk judgement began on 20th December 2016 and will end on 31st March 2017. Read on for more information on this case and to take part in the Government survey.
How could the new Vnuk judgement affect motor traders?
If you store vehicles on private lands, such as in a barn then this will need to be registered under the Motor Insurance Database.
New vehicles may have to be registered on the Motor Insurance Database (MID).
Victims that are currently unprotected could gain compensation under new laws.
There could be price increases to your annual premium to cover the increase in potential claims from your insurance provider and the MIB (Motor Insurance Bureau)
The SORN (Statuary Off-Road Notification) scheme may have to change in light of new government actions. The SORN currently removes the need for road tax and motor insurance.
If the government considers a wide range of vehicles then a decision must be made about what penalties would be imposed if there was a failure to comply.
There is a potential for fraud to increase because of accidents happening on private land away from CCTV and witnesses; this could increase temptation for people to make fraudulent claims.
The police may become inundated with reports, which will add complications to their current roles.
What are the options?
There are two main options that the Government has to decide between concerning the Vnuk judgement; The Comprehensive option and the amended directive option.
Option 1: Comprehensive option
New Motor insurance laws will offer victims compensation for accidents that aren’t necessarily on roads or public areas. This would mean that all vehicles used on private land would need at least third party cover. Potential Changes to the current law are as follows:
Change 1: All vehicles under the new option would be required by law to have vehicle insurance, even when a vehicle is used purely on private land.
Change 2: Car accidents on private land would be covered, whether the driver is uninsured or has third party liability.
Change 3: Newly-in-scope vehicles (a broadened range of vehicles to be insured) which have accidents where the land has public access to, will be covered, even if the driver was not insured for third party liabilities.
Change 4: Newly-in-scope vehicles will be covered even if the accident is purely on private land, even if the driver was not insured for third part liabilities.
What are newly-in-scope vehicles?
Electrically assisted pedal cycles
Quad bikes (off-road construction)
Motorized ride-on children’s toys
Fork lift trucks
Motor Sports vehicles
Option 2: Amended Directive option
Victims of accidents on public land could be offered compensation under new motor insurance laws. This option will change the Road Traffic Act 1988. Third party insurance will not be compulsory on private land, however, newly-in-scope vehicles will need to be insured where there is public access.
Here are some of the potential changes to the current laws:
Change 1: Car accidents on private land where the driver does not have third party liability is not covered.
Change 2: Car accidents on private land would be covered if the driver had third party liability.
Change 3: Newly-in-scope vehicles will be covered, even if the driver was not insured for third part liabilities. This is new to the current insurance laws.
Change 4: Newly-in-scope vehicles that do not have third party liability will not be covered for accidents on private land which is the same as current insurance laws.
Change 5: Newly-in-scope vehicles that have third party liability (optional) will not be covered for accidents on private land unless insurance covers this already. This is the same as now.
For more information on the MID, check our frequently asked questions.
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Is Your Car Registered On The Mid? New Motor Trade Law Could Affect Your Insurance
The Motor Insurance industry could be set for a big shake up as a review begins into compensation rights for victims of accidents and damage on private land. The review was prompted from a ruling by the European courts in 2014 which resulted in the Vnuk judgement.
What Is The Mid?
The Motor Insurance Database (MID) is a central record of all insurance vehicles in the UK, and is managed by the Motor Insurance Bureau (MIB). The MID is mainly used as a way for the Police and the Driver and Vehicle Licensing Agency (DVLA) to enforce motor insurance laws.
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Whatever part of the motor trade industry you work in, there are ways you can mitigate the impact of rising insurance policy costs. These include measures to reduce claims of your own, measures to reduce claims against you, and other ways to generally make sure you’re not paying over the odds.