Motor Vehicles (Compulsory Insurance) Bill

Debate between Anna McMorrin and Peter Bone

3rd reading
Friday 28th January 2022 Commons Chamber

[Mr Bone]

I am very grateful to my right hon. Friend, who has been a staunch supporter of this Bill. To his point, there has been no objection; in fact, there has been tremendous support. I am afraid that in the whole process, the only person who has bowled a bouncer is him—but I will come to that later.

[Anna McMorrin (Cardiff North) (Lab)]

Can the hon. Gentleman clarify what would happen? We know that many accidents take place on farmland. Does public liability insurance apply? Could he confirm what would happen to somebody who was the victim of an awful accident on that farmland, for example?

[Mr Bone]

The hon. Lady goes to the crux of the matter. That question was brought up in Committee by the right hon. Member for Warley (John Spellar), and I will discuss it in some detail later on; if I may, I will deal with it when I get to it.

This Bill will restore the interpretation to British statute that this sovereign Parliament always intended. Most importantly, it will end any associated liability for insurance claims against the Motor Insurers’ Bureau for the cost of accidents on private land when motor insurance was not held. Importantly, the Bill does not seek to invent new policy, nor, to the point the hon. Member for Cardiff North (Anna McMorrin) raised, would it limit the Government or Parliament in changing insurance regulations for motor vehicles in the future, if that is what Parliament decides to do.

How did we get into this mess? Under the European Union withdrawal agreement, the Vnuk decision has become retained EU case law. In other words, it is the law of the land unless we change it. We cannot just ignore it, because it is an EU court decision and has now become the law of the land. Therefore, it is essential that we act to prevent this European Court of Justice decision from punishing motorists through higher premiums. At a time when the cost of living is at the forefront of all our minds, this is an opportunity to save ordinary people from an unnecessary burden.

I will explain further: if the status quo is allowed to continue, to account for its liability for accidents on private land, the Motor Insurers Bureau will have to increase its charging levy. That levy is paid by the motor insurers, which in turn will pass on the cost to the motorist.

That is all well and good, but how much will the extra cost be reflected in the average motorist’s insurance premium? The Government actuaries have got out their bean counters, pressed a few buttons on the computer and estimated the cost. By removing the Vnuk judgment, the average motorist will be saved from a £50 price hike to their insurance premiums. Let me say that again: the Government experts say the Bill will save the average motorist £50 each and every year.

Clearly, there are huge benefits to motorists, so it is no surprise that the Bill enjoys support from both sides of the House. I thank hon. Members on the Opposition Benches for supporting something that will benefit all motorists. On Fridays, as we know, it is good when both sides of the House work together to achieve something that helps our constituents.