AQW 25543/17-22
Mr Roy Beggs
Ulster Unionist Party
East Antrim
Tabled Date: 10/11/2021
Answered On Date: 25/11/2021
Priority Written: No
Question:
To ask the Minister for Infrastructure what plans there are to to introduce legislation to exclude Northern Ireland drivers from the additional motor insurance cost implications arising from the Vnuk case.
Answer:
Domestic statutory provision currently restricts mandatory motor insurance cover to the use of vehicles on roads and other public places. However the provisions of the European Union (Withdrawal Act) 2018 mean that Vnuk case law, as it applied at Exit day, has been retained in UK domestic legislation. Now that GB NI is no longer a Member of the EU, there is an option to legislate to remove this provision. On 21 February 2021 the British Government announced its decision not to implement the EU’s ‘Vnuk’ motor insurance law in Britain. Implementation would have extended mandatory motor insurance to a broader range of motorised vehicles, and to the use of vehicles on private land. Financial analysis has suggested that this would be likely to generate a significant increase in insurance premiums. The required provisions, for Britain only, have now been brought forward in a Westminster Private Member’s Bill. This Bill has now passed through to its Committee stage and is likely to become law. Motor insurance is a devolved matter and the NI Protocol does not require us to align with the EU requirements on motor insurance. I am minded to maintain the current position in relation to mandatory motor insurance. This approach would be in line with views expressed during a consultation exercise in 2016/17 and with the approach in Britain. This will however entail legislative change and I am currently exploring how this can best be achieved.
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