Tuesday, April 23, 2024
HomeNEWSINTERNATIONALLLOYD’S SPURNS EU BIKE SPORT INSURANCE EDICT

LLOYD’S SPURNS EU BIKE SPORT INSURANCE EDICT

The Lloyd’s Market Association (LMA), the key organisation speaking for insurance underwriting businesses at Lloyd’s of London, has joined opposition to the European Court of Justice (ECJ) “Vnuk judgement” endangering motorcycle sport. In response to a Department for Transport (DfT) technical consultation on this subject, The LMA has challenged both options proposed by the government. 

It describes the first, a “comprehensive option” which would oblige UK insurers to comply fully with EU law established by Vnuk, as “unworkable”. And the LMA said the second, an “amended directive option” broadening the definition of what constitutes a motor vehicle requiring insurance but exempting users on private land, “will be difficult to enforce and could lead to increased fraud risk, resulting in higher costs for insurers and ultimately consumers”.

The LMA recommended delaying government action, until further consultation is undertaken to consider how possible increased costs and fraud could be mitigated, and retaining current Road Traffic Act laws until the UK has left the EU and ECJ verdicts no longer apply.

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