Vehicle Technology and Aviation Bill (First sitting)

Richard Fuller Excerpts

Tuesday 14th March 2017 Public Bill Committees

[Andy McDonald (Middlesbrough) (Lab)]

Q I will be very brief. The Bill introduces the new concept we are moving to—the exposure to manufacturers’ liability. Has the Bill got it right in terms of the balance between insurers’ and manufacturers’ liability? Secondly, Mr Wong talked about accessibility cost. The cost of insurance will be key. Is the insurance industry ready for this? Clearly, premiums should be cheaper if we are getting errorless driving, but is the insurance industry sophisticated enough and ready enough to make that offer to consumers in the first instance? Lastly, on the issue of updates, does that present fresh exposures to manufacturers for the duration of the life of that vehicle on every software update iteration? Have you given any thought to how that plays in the context of current consumer protection legislation and issues of limitation? Does that now cause us to revolutionise the way we look at people purchasing vehicles? Are they going to be out there forever with software with little or no control? Any thoughts or comments?

David Williams: I think the Bill does have the balance right. It focuses on the road user. That is why we have got the Road Traffic Act 1988. Therefore the Bill has to focus on the safety of road users rather than insurers and manufacturers. As an insurer, we can price for anything. You have a balance with regard to how much liability finally rests with the motor manufacturer. That can develop over time, and they have definitely got some skin in the game. If they are negligent they will be called to account and will need to indemnify the insurer; so I think the balance is right.

With regard to whether the insurance industry is ready, in the past I do not think we have been, for things like this, but the fact that we already have the Autonomous Driving Insurance Group, which meets regularly and is very well attended, that the Thatcham motor vehicle research institute is all over it, and that AXA alone is involved with three of the Government-backed consortia means we are ready—we will be ready.

David Wong: On software updates, we believe that the “state of the art” defence principle applies here, which means at the point when the vehicle, together with the systems, including software and firmware, are being developed, the manufacturer has done its utmost to ensure that it is completely secure and, based on the scientific knowledge and the technology at that point in time, has done its very best. Of course, software updates are always, basically, a moving target; it changes every hour—but the “state of the art” defence applies in this case.

Steve Gooding: I think the motor industry will have to answer for this, because if you think of your home computer, every now and then you get a message saying “Your software is going out of support”. I think we need a bit of reassurance from the auto sector that we are not going to find that a vehicle we buy next year, and then in seven or eight years’ time is in the second-hand market, gets the message that “this vehicle is going out of support” and is therefore judged in some sense to be no longer roadworthy.

David Wong: It is reasonable to expect that vehicle manufacturers will continue updating, upgrading and patching the software, as do computer manufacturers and software manufacturers. However, even as Microsoft has decided, after a while, to discontinue the support for Windows XP and Windows Vista, one must not expect vehicle manufacturers to continue supporting particular software 20 years’ down the road, even if the vehicle is still roadworthy.

[Richard Fuller (Bedford) (Con)]

Q Within its scope, does this Bill do enough to position the UK as a global leader in vehicle technology? If not, what is missing? If you do not have the time to answer, maybe you can email me.

[The Chair]

Two minutes to cover that favourable topic.

David Williams: From an insurance perspective, yes.

Denis Naberezhnykh: From a research angle on this, no, not entirely, but that is because, as I said at the beginning, we think it could be further-looking, as with what some countries are doing; but it is adequate at addressing the near-term goals.

David Wong: From the vehicle manufacturers’ perspective, I think more can be done, particularly with regard to connected autonomous vehicles. The particular area of connectivity and infrastructure is clearly missing in this Bill.