The Motor Insurers’ Bureau (MIB) welcomes news that the Motor Vehicles (Compulsory Insurance) Bill has passed through parliament, which will remove the EU’s Vnuk ruling from UK law and result in significant savings for motorists.

Dominic Clayden, CEO at MIB, said:

“The MIB welcomes the passing of the Motor Vehicles (Compulsory Insurance) Bill. We have campaigned on this issue for a number of years and we’re delighted that the necessary legislation to remove the effects of Vnuk has now passed.

“Motorists will no longer be faced with the additional costs, relating to future accidents on private land and accidents involving a range of extra vehicles – including lawnmowers and golf carts. This will save all motorists money and take us back to the common-sense approach we had before the Vnuk ruling in 2014.”

The Vnuk ruling followed a 2014 European Court of Justice outcome where it was deemed that any motorised vehicle used on private land would need compulsory motor insurance.

This meant MIB’s compensation scheme to support those involved in accidents with uninsured drivers would need to be extended to cover accidents on private land, which would impact insurers who are required to fund MIB’s annual levy.

Government figures suggest the cost of covering accidents with uninsured vehicles on private land would have added £50 onto every motorist’s premium each year.  

The removal of Vnuk law follows seven years of campaigning by MIB and the insurance industry. Throughout this period, MIB has remained committed to working with the Department for Transport and the insurance industry to ensure a practical solution could be found.   

The Government’s press statement can be read here.