Motor Vehicles (Compulsory Insurance) Bill

Debate between Marco Longhi and Mike Penning

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.