Overview

This bill amends retained EU law concerning compulsory motor vehicle insurance. It clarifies that compulsory insurance doesn't extend to non-motor vehicles or their use outside of roads and public places in Great Britain.

Description

The bill modifies the Road Traffic Act 1988. Specifically, it inserts a new section (156A) addressing retained EU law (the 2009 Motor Insurance Directive) on compulsory insurance. This new section limits the application of the Directive to motor vehicles used on roads or public places in Great Britain. It excludes liability for non-motor vehicles and those used off-road or in private locations. The bill also removes certain rights related to compensation for accidents involving vehicles outside this scope. Existing case law contradicting these changes will cease to have effect. The changes come into effect two months after the bill is passed and apply to England, Wales, and Scotland.

Government Spending

The bill is not expected to have a significant direct impact on government spending. Any changes to compensation claims will likely affect the government indirectly through reduced potential payouts from its existing insurance schemes or those run by other agencies but concrete figures are not provided in the bill.

Groups Affected

• Motorists: The bill primarily affects motorists who are required to have compulsory insurance for motor vehicles used on roads and public places in Great Britain; the scope of this requirement remains unchanged.
• Insurers: Insurers will need to adjust their policies to reflect the more precise definition of when compulsory insurance is required.
• Individuals injured in accidents involving non-motor vehicles or vehicles off-road: These individuals may find it harder to claim compensation for injuries if the at-fault party is uninsured or untraceable, depending on other factors.
• Courts and legal professionals: The changes will affect how they interpret and apply the law relating to compulsory motor insurance.

Powered by nyModel