Motor Vehicles (Compulsory Insurance) Bill

Debate between Greg Knight and Wendy Morton

Committee stage
Wednesday 5th January 2022 Public Bill Committees

[The Parliamentary Under-Secretary of State for Transport (Wendy Morton)]

It is a pleasure to serve on this Committee and under your chairmanship, Ms Ali. I congratulate my hon. Friend the Member for Wellingborough on his success in promoting this private Member’s Bill. I echo the comments of my right hon. Friend the Member for Chipping Barnet. She rightly recognises the determination needed to progress a private Member’s Bill. I know my right hon. Friend fully understands this, having in the past attempted to get various private Member’s Bills through this place—as I have myself. I really do congratulate my hon. Friend the Member for Wellingborough.

This is an important issue. The Government have been clear since the 2014 European Court of Justice’s ruling in the Vnuk case that we do not agree with it. The decision created the unnecessary extension of motor insurance to private land and a greater range of vehicles. This is why we announced that we will remove the effects of Vnuk from GB law in February this year. Delivering on that includes removing the associated financial liability imposed on the Motor Insurers’ Bureau via the England and Wales Court of Appeal’s decision in Lewis.

The proposed legislation in this presentation Bill represents the best possible opportunity to address the issue at the earliest possible opportunity. Clause 1 rightly makes provision to clarify how the compulsory insurance obligation operates in GB and makes it clear that there is no obligation to extend insurance to private land and vehicles not constructed for road use. It removes any retained EU law rights to compensation from the MIB created by the Lewis case. The clause also provides that retained EU case law that is inconsistent with the position set out in this will cease to have effect. That, in effect, removes the Vnuk decision from GB law. The Bill does not have retrospective effect and will come into force two months after Royal Assent.

[Sir Greg Knight]

Will the Minister share her thoughts on where this leaves electric scooters, which are being trialled in some areas? If they are authorised for road use, will they then be deemed to be a motor vehicle and need compulsory insurance?

[Wendy Morton]

My right hon. Friend raises a very interesting question. My understanding of this Bill is that it is very much focused on the issue around private land, but if there is anything that I need to follow up on, perhaps on the specifics of scooters, I will.

[Sir Greg Knight]

If my hon. Friend could write to me with her thoughts on that before Third Reading, I would be quite happy.

[Wendy Morton]

I undertake to write to my right hon. Friend with the clarity that I think he is looking for.

To conclude, the provisions will comprehensively remove the effect of Vnuk and Lewis from GB law. For those reasons, the Government support the Bill.