East Antrim Assemblyman Roy Beggs MLA, a member of the Infrastructure Committee at Stormont has welcomed a Ministerial update that legislation is being introduced to exclude Northern Ireland drivers from the additional motor insurance cost implications arising from the Vnuk case – expected to average at £50 per year.
Speaking at the Infrastructure Committee, Roy Beggs MLA said:
“This has been an issue of concern since I tabled questions to the Minister last February. I am pleased that, finally, we are moving forward with it, because there is a huge cost implication for every vehicle owner in Northern Ireland — a £50 a year increase in insurance costs — if we do nothing. There seems to be clear support for the Bill. Accelerated passage is not a good way in which to introduce legislation, so, rather than have us invent something new that may be problematic, will our Bill mirror the legislation that has at least been scrutinised in detail at Westminster and completed its Committee Stage?
Infrastructure Minister Nichola Mallon MLA responded “The purpose of the PMB at Westminster is really to maintain the status quo. That is exactly what our Bill, via accelerated passage, would do.”
Mr Beggs added that “When a Minister comes before a Committee seeking accelerated passage, we are normally given a copy of the draft legislation so that we know what we are saying yes to. I am content to say yes in principle, but I will need to see the draft Bill before I can say definitively that I will support it. “
Ends
Notes to editors:
See below for a series of written questions Mr Beggs has placed to the Minister in the past year on Vnuk
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 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.
AQW 15202/17-22
Mr Roy Beggs, Ulster Unionist Party, East Antrim
Tabled Date: 23/02/2021, Answered On Date: 05/03/2021, Priority Written: No
Question:
To ask the Minister for Infrastructure to detail (i) all vehicles on private land that would be required to have specific insurance policies should the EU Vnuk legislative proposal be imposed on Northern Ireland; and (ii) the estimated cumulative estimated cost for such insurance policies.
Answer:
The effect of the Withdrawal Act 2018 means that Vnuk case law, as it applied at Exit day, has been retained in UK domestic legislation. Now that the Exit Transition Period has ended, there is an option to remove the Vnuk ruling from retained EU law.
It is important to note that the Northern Ireland Protocol does not require us to align with the EU requirements on motor insurance. Motor insurance is a devolved matter here. I am currently taking advice before deciding how to proceed on this issue.
Implementation of the Vnuk judgement would require mandatory motor insurance for a wider range of vehicles than at present. It is not possible to provide a definitive list, however this could include vehicles such as golf buggies, mobility scooters, quad bikes, ride on lawnmowers and those involved in motor sports. It could also potentially extend to include vehicles used to carry out business activities such as construction and agricultural vehicles, which are not already subject to the mandatory insurance requirements contained in the Road Traffic Order 1981.
The Vnuk Impact Analysis carried out by the UK Government’s Actuary Department in 2019, considered that implementation of Vnuk would increase insurance costs for the UK by around £2 billion and that the majority of the increased costs would be passed on to their customers. The modelling used in this analysis assessed the impact of the Vnuk judgement across the whole of the UK, and therefore did not distinguish between Northern Ireland and GB.
AQW 15201/17-22
Mr Roy Beggs, Ulster Unionist Party, East Antrim
Tabled Date: 23/02/2021, Answered On Date: 08/03/2021, Priority Written: No
Question:
To ask the Minister for Infrastructure what is the increased estimated cost to a typical Northern Ireland driver insurance policy as a result of the Vnuk ruling should it be applied here.
Answer:
The Vnuk Impact Analysis carried out by the UK Government’s Actuary Department in 2019 concluded that the potential cost of implementation could be a £1.2 billion increase in insurance premiums across the whole of the UK. This equates to approximately a £50 increase to existing motorcar policy holders’ premiums.
The modelling used assessed the impact of the Vnuk judgement across the whole of the UK, and therefore did not distinguish between Northern Ireland and GB.
AQW 15200/17-22
Mr Roy Beggs, Ulster Unionist Party, East Antrim
Tabled Date: 23/02/2021, Answered On Date: 08/03/2021, Priority Written: No
Question:
To ask the Minister for Infrastructure whether Northern Ireland will be subject to the EU Vnuk legislative requirement.
Answer:
The effect of the Withdrawal Act 2018 means that Vnuk case law, as it applied at Exit day, has been retained in UK domestic legislation. Now that the Exit Transition Period has ended, there is an option to remove the Vnuk ruling from retained EU law.
The Northern Ireland Protocol does not require us to align with the EU requirements on motor insurance. Motor insurance is a devolved matter here. I am currently taking advice before deciding how to proceed on this issue.
