Motor Vehicles (Compulsory Insurance) Bill

Marco Longhi Excerpts

3rd reading
Friday 28th January 2022 Commons Chamber

[Marco Longhi (Dudley North) (Con)]

By way of a passing reference to Brexit, I would like to reassure my hon. Friend the Member for Wellingborough (Mr Bone) that my thinking is very much aligned with his on all matters Brexit, so he should feel a degree of confidence in what I am about to say.

The people in my constituency overwhelmingly voted to leave the European Union—I believe in the region of 72%. The general election in December 2019 proved yet again at the fourth time of asking that the United Kingdom wanted to leave. So would you not agree, Mr Deputy Speaker, that it is right that we should continue to end needless retained EU laws? I am pleased to support the Bill and that the Government also support it.

I echo Mark Shepherd from the Association of British Insurers, who said:

“There would have been no easy way to monitor compliance and enforcement for those using their vehicles on private land. It would also have been difficult to establish the circumstances of any claim, so increased the scope for fraud, that ultimately ends up being paid for by motorists through their insurance premiums.”

That is something that any one of us is very familiar with if we own a car.

Following Vnuk and the subsequent case of Lewis v. Tindale, the UK motor insurance industry has found itself financially liable, via the MIB levy, for accidents involving uninsured vehicles in circumstances where compulsory insurance is not required. This arises from the decision in Vnuk and Lewis and the imposition of EU law requirements that were retained post Brexit by the European Union Withdrawal Act 2018. The Bill will remove the lingering effect of EU law in this area and restate the position under the 1988 Act whereby motor insurance is required only for the use of motor vehicles on a road or other public place. I should perhaps declare a minor interest here: I own one vehicle that is currently off the road.

[Sir Mike Penning (Hemel Hempstead) (Con)]

SORN.

[Marco Longhi]

SORN—that is the word.

At a time when everyone is facing increasing household bills, fuel costs and cost of living, we should make it our priority to get rid of any unnecessary financial burdens. The Bill will reduce the cost of insurance for motorists across the UK. As has been said a couple of times already, implementing Vnuk across the UK would have cost something in the region of £2 billion, covering all existing motor cars, motorbikes, business vehicles, motorsports and other businesses.

[Sir Greg Knight]

I am a car owner too—I think most of us are—but is it not also important that without the Bill, the future of British motorsport could be seriously at risk?

[Marco Longhi]

I thank my right hon. Friend for his intervention and I completely agree with his observation.

It has been calculated that insurance policyholders could face an estimated cost of over £1 billion if Vnuk were implemented, expressed as a potential increase in individual insurance premiums of circa £50 for 25 million consumers. An extra £50 a month is a lot of money for many families; it could mean choosing between eating or heating their homes. Our constituents should keep that £50 in their own pockets, and not cover the costs of some idiots who may cause accidents and fail to insure their vehicles while they are at it. To me, the Bill smacks of pure common sense.

--- Later in debate ---

[Mr Bone]

With the leave of the House, I would like to thank all the people who have assisted with the Bill and particularly those who have spoken today. My hon. Friend the Member for Stourbridge (Suzanne Webb) brought up Brexit, saying that two thirds of her constituents voted for it, and then, blow me down, that was topped by my hon. Friend the Member for Dudley North (Marco Longhi), who said the proportion was 70%—

[Marco Longhi]

It was 72%.

[Mr Bone]

Indeed. Then, of course, we moved to my hon. Friend the Member for South Cambridgeshire (Anthony Browne), who said that Vnuk would be very difficult to enforce and just happened to mention that nearly two thirds of people there voted remain. In fact, that was the only place in the United Kingdom that I went to as part of the leave campaign where there were remain posters up in the windows as I knocked on the doors.

I thank my right hon. Friend the Member for Hemel Hempstead (Sir Mike Penning), not least for his help at the beginning of the debate. He and the excellent shadow Minister, the hon. Member for Wythenshawe and Sale East (Mike Kane), also rightly made the point, “Hang on, motor industry, we have done you a pretty good favour today. How about looking after motorists?” Like so many organisations, it is very quick to put things up but not so quick to bring them down, so I hope that that was noted.

My hon. Friend the Member for East Surrey (Claire Coutinho) said that if there are regulations that we do not need, let us reduce them. My hon. Friends the Members for Loughborough (Jane Hunt) and for Vale of Clwyd (Dr Davies) mentioned the cost—the £50 hike that would occur—and the consultation in which 94% were against the Vnuk decision. I am not quite sure what the other 6% were thinking about, but that is pretty high. I also thank the hon. Member for Cardiff North (Anna McMorrin), who made a really important point, which I hope we dealt with in the Bill. At the beginning of the process, I was very concerned about that, too.

Let me turn to some of the people who are not in the Chamber today who have helped with the Bill. In particular, I thank James Langston of the Department for Transport and the team for all their assistance. I thank the excellent Minister at the Dispatch Box and the shadow Minister—without Opposition support, we could not have made progress today, so I am very grateful.

I thank Nick Robbins of the Motor Insurers’ Bureau and David Holt of Weightmans for their immensely detailed knowledge and help. I thank my right hon. Friend the Member for Chipping Barnet (Theresa Villiers), who not only led the Westminster Hall debate but attended many stakeholder meetings, and my right hon. Friend the Member for East Yorkshire (Sir Greg Knight), who bowled one or two bouncers during the process, and I am very grateful for that scrutiny.

It has been gratifying to see such widespread engagement with and support for the Bill, including from the National Farmers Union and members of the all-party groups on motorsport, farming and historic vehicles, all of whose specialist area of interest will be profoundly impacted by the Vnuk judgment. I also thank, as my right hon. Friend the Member for Central Devon (Mel Stride) did in relation to the previous Bill, Adam Mellows-Facer, the Clerk of Private Members’ Bills, who I can embarrass—my right hon. Friend could not because he had left the Chamber, but I will embarrass him and say what a professional and helpful job he has done.

Finally, I thank Isobelle Jackson in my office, who helped in preparing all the work behind the Bill. Just getting a private Member’s Bill to this stage takes a lot of work and I have an enormous appreciation for all the work that she has done.

Question put and agreed to.

Bill accordingly read the Third time and passed.