Automated Vehicles Bill [HL]

Lord Liddle Excerpts

Committee stage
Monday 15th January 2024 Lords Chamber

Moved by

[Lord Liddle]

38: Schedule 2, page 80, leave out lines 17 to 19
Member’s explanatory statement
This is a consequential amendment on Lord Liddle’s other amendment to insert a new clause entitled “Liability of insurers”.

[Lord Liddle (Lab)]

My Lords, from a discussion of the critical world situation, we move to discuss insurance questions under automated vehicles—such is the breadth of the House of Lords.

In moving Amendment 38 and speaking to the other amendments in this group, we on this side of the House are not pretending that we are insurance experts. We are not, but we do think it is a very striking omission from the Bill that there appears to be no reference to insurance, at least in any detailed way. I think this is puzzling. There are already arguments from the Association of Personal Injury Lawyers that the advent of automated features in driving cars has led to insurance uncertainties, the obvious example being that if one puts one’s car on cruise control on the assumption that it has an automatic braking system and the automatic braking system does not work, who is liable? Is it still the driver, or the people who manufactured the system, or the motor manufacturer who installed it? I think these questions will multiply as we move towards a world of automated vehicles.

This was brought home to me when the Minister kindly wrote to us—I am not sure I have the piece of paper here—about the time that you are allowed when you are given a warning that you have to take control of the vehicle. The department has not made up its mind. It wants to try to work out how this might vary in different circumstances; that is what I understand the department’s position to be.

This strikes me as highlighting what I think will become a significant issue: if an accident occurs in this period, where you are given a warning and you have to do something to control the car, there will be tremendous disputes about who was actually in charge and liable at the time. This at least has to be addressed. If it is not addressed in the content of the Bill, we have to know that the department has a solution to this issue.

That, in summary, is what the amendments I have put down are about. I am not sure that they are technically in order, and I doubt very much whether they would be in the final version of the Bill, but we are asking the Government here to take away this issue, think about it and come up with something when the Bill comes back to us on Report. With that, I move the amendment in my name.

[Baroness Randerson (LD)]

My Lords, I added my name to one of the amendments from the noble Lord, Lord Liddle, because I was struck by the briefing that we received from the Association of Personal Injury Lawyers, to which the noble Lord has just referred. Other people who have been in correspondence with us have highlighted the fact that non-motorised road users, such as cyclists and pedestrians—one can think of many others; horse riders, for example—are already physically the most vulnerable on any road. Their vulnerability will be compounded in future by their legal disadvantage in relation to insurance unless this Bill is very clear.

This is not like a vehicle-to-vehicle accident. If my vehicle hits your vehicle, in normal circumstances we will be insured. The situation is dealt with by lawyers acting for insurance companies, which operate via clear rules. Because of the information they hold, automated vehicles should make things clearer. They will have recorded the information showing exactly what has happened; we will no longer rely on individual drivers’ responses.

However, when a vehicle hits a pedestrian, that pedestrian would not normally be insured as a pedestrian and would undoubtedly be unaware of their legal situation and, in most circumstances, of their legal rights. They could be in a position where they are too young or too badly injured, for instance, to be able to take the appropriate action at the time. So it is very important that this Bill is absolutely clear about the situation.

The Association of Personal Injury Lawyers raised the specific issue of Section 2 of the 2018 Act, which allows people who are injured by an automated vehicle when it is driving itself to make a claim against the driver’s insurance. This provision is now included here. If the Bill is passed, this section will apply to automated vehicles if they are travelling while an authorised automation feature of the vehicle is engaged.

--- Later in debate ---

[The Parliamentary Under-Secretary of State, Department for Transport (Lord Davies of Gower) (Con)]

My Lords, once again I am grateful for the contributions in this group. One of the central functions of the Bill is to clarify how liability is to be handled in a world of self-driving vehicles. This is a complex area and I reiterate my thanks to the Law Commissions for their many years of work developing the approaches that we are discussing today. I am grateful also to noble Lords for their insightful contributions and scrutiny on this critical issue.

Amendment 55G, tabled by the noble Lord, Lord Liddle, would require a study to be conducted on human reactions to transition demands. Before I address that proposal, I will respond to his specific point about how liability applies during the transition period. The Bill is explicit that the authorised self-driving entity remains responsible for the behaviour of the vehicle until the transition period expires. After that period, liability shifts to the driver. However, it is a misconception to imagine that manual control will simply be forced on the driver at the end of that period. Clause 7(3)(e) mandates that vehicles be capable of dealing safely with a situation in which the user-in-charge fails to assume control. In other words, although legal responsibility shifts back to the driver once the transition period expires, the vehicle is still required to bring itself to a safe stop without their intervention. A vehicle that was unable to do that would not be authorised.

On the amendment itself, there is already a considerable body of evidence on response times to transition demands, particularly using simulators. Much of that underpins the international automated lane keeping systems regulation to which I referred earlier. There are a number of additional research projects in this space already in development across the Department for Transport and its agencies. For example, one such project looks to explore what activities a user-in-charge can safely perform while their vehicle is driving itself. This is a question that will also require ongoing monitoring and evaluation over time. We will be able to mandate information sharing from authorised self-driving entities to further expand this evidence base as the technology develops.

[Lord Liddle (Lab)]

I am not trying to be difficult, but I did not quite understand the point the Minister made about the ASDE still being liable. Let us hypothesise a simple situation. A vehicle is being driven autonomously. A warning is given so the driver takes control, but he is unable to stop the vehicle in time from crashing into a motorcyclist or whatever. The driver is in control—is it clear that he is not liable? Does the Minister see what I mean? I think you can have a situation where you are required to take control but it is too challenging a situation for you to do what is necessary, and you get involved in an accident. Are you then liable? I just do not understand. I am not clear what the position is.

[Lord Davies of Gower (Con)]

I am grateful to the noble Lord for bringing up that point. I think the Bill specifically protects the driver from being put in an impossible position by the handover, but I might go away and get proper clarification instead of standing here and—while not guessing—giving my opinion.

[Lord Liddle (Lab)]

That is fine with me. Perhaps, in the meeting we are going to have, we can discuss this question so that someone who actually understands it properly can explain it to us.

[Lord Davies of Gower (Con)]

That will be a challenge.

I will pick up from where I left off. We will be able to mandate information sharing from authorised self-driving entities to further expand this evidence base as the technology develops. Such issues may also be considered and reviewed as part of the general monitoring duty under Clause 38. For those reasons, I believe the amendment is unnecessary.

On Amendment 55A, tabled by my noble friend Lord Holmes of Richmond, he is right that swift and reliable access to vehicle data will be central to correctly apportioning liability—a point also raised by the noble Baroness, Lady Randerson. As our policy scoping notes set out, we intend to develop regulatory requirements covering data recording, retention and access, in line with the Law Commissions’ recommendations. Ensuring that those are appropriate and proportionate will require careful consultation and impact assessment. The approach proposed by the amendment is unlikely to allow for that and therefore will not adequately address the issue.

Amendment 55F calls for the Government to lay a Statement on who is responsible for insuring and maintaining authorised automated vehicles. The Road Traffic Act 1988 makes it an offence to use or permit the use of a vehicle without appropriate insurance or in a dangerous state. The offence therefore applies to the driver, and potentially to others who enable the use of the vehicle. Clause 49 is clear that the user-in-charge is to be considered a driver for all purposes other than those relating to how the vehicle behaves. The responsibility for roadworthiness and insurance therefore sits with the user-in-charge, just as it does with a conventional driver. Self-driving vehicles that do not require a user-in-charge must be overseen by a no-user-in-charge operator. These operators may own and oversee fleets of vehicles, meaning that they would be responsible for maintenance and insurance. Alternatively, they may simply offer an oversight and incident response service for privately owned vehicles. In this case, it is more appropriate that those responsibilities sit with the owner. Where the responsibilities sit will therefore depend on the business model, and that will be clarified by the Government as part of each operator’s licensing conditions as necessary.

Amendment 55H calls for a Statement on the information that will be published to support the underwriting of self-driving vehicle insurance. Under the Automated and Electric Vehicles Act, self-driving vehicles require policies where the insurer has first-instance liability when the vehicle is driving itself. The insurer is then able to recover against the person responsible, which may be the authorised self-driving entity, following an incident. The Government will establish a public register of self-driving vehicle authorisations, including a list of authorised self-driving entities. The Driver & Vehicle Licensing Agency vehicle registration database will then identify which vehicles have been authorised as self-driving. That will provide clarity about which vehicles require a self-driving insurance policy. While we feel that this information will be sufficient to ensure that vehicles are fit for underwriting purposes, we recognise that further data could support the more accurate pricing of risk. My officials have begun discussions with insurers about what could be needed, and this dialogue will continue as the secondary legislation is developed. I trust that clarifies the position, and I hope the noble Lord, Lord Liddle, agrees that Amendments 55F and 55H are not needed.

With Amendments 38 and 52, the noble Lord looks to remove the need for the victim of an incident to prove that an automated vehicle was driving itself in order to make a claim for compensation. There is no such need to begin with. Where a conventional driver-operated vehicle is involved in a collision, the victim has a claim against the at-fault driver. In practice, either the victim or the driver will contact the relevant insurer for the vehicle, who will then investigate the claim to establish fault and issue compensation appropriately. This approach is long-established and set out in law. It generally works well, and it is not the function of the Bill to change it. The Automated and Electric Vehicles Act assigns the insurer first-instance liability in incidents caused by an automated vehicle that is driving itself. That means the victim is able to claim compensation from the relevant insurer whether there is an at-fault driver or whether the vehicle was in self-driving mode. A claim can be made in either case. The insurer can then determine whether that claim is covered by the conventional third-party insurance or the self-driving vehicle insurance. As I have set out, we will be setting authorisation requirements mandating certain forms of data logging. This information will help the processing of claims.

On Amendment 39, it would be inappropriate to apply a presumption of liability inconsistently across different road users. That could even encourage risk-taking behaviour and ultimately compromise road safety. I recognise the wider point that the noble Lord is making about the safety of other road users. In our earlier discussion about accessibility, I referred to some of the measures we will use to avoid specific groups being placed at a disadvantage by the introduction of self-driving vehicles. For example, we will look to include principles of equality and fairness in the statement of safety principles and will take steps to prevent data biases. These will also apply to vulnerable road users.

In conclusion, I respectfully ask the noble Lord to withdraw his amendment.

[Lord Liddle (Lab)]

I am happy to withdraw the amendment on the understanding that we have a further conversation about it.

[Lord Davies of Gower (Con)]

I am happy to accommodate that.

[Lord Liddle (Lab)]

I beg leave to withdraw the amendment.

Amendment 38 withdrawn.