Motor Vehicles (Compulsory Insurance) Bill

Debate between Stephen Timms and Peter Bone

Committee stage
Wednesday 5th January 2022 Public Bill Committees

[Mr Bone]

My right hon. Friend is absolutely right about increased costs, and I will deal with that point later in my remarks. He is also correct about the threat to motor sports.

The Bill would end the Vnuk decision’s application in retained EU law and related retained case law. I believe that I am correct in saying that, if passed, the Bill will be the first Act of Parliament to remove EU retained law; it will be a landmark first step in taking back control of our own laws. It is just one of the clear advantages of leaving European Union that we may now alter our laws to ensure that they are interpreted in the way that this sovereign Parliament intends.

[Stephen Timms (East Ham) (Lab)]

As I understand it, the EU has now changed its law. Because we are outside the EU, could we not stick with the retained law? I just want to make that point, because I do not agree with the hon. Gentleman about the damage of being in the EU.

[Mr Bone]

I was going to deal with that, but I will answer the specifics. The right hon. Gentleman is quite right that the EU is changing the directive so that it applies differently in the EU, but it is not changing it in the same way as we propose to do. I will deal with the issue later.

The Bill does not seek to invent new policy, nor would it limit the Government or Parliament in changing insurance regulations for motor vehicles in future. The Bill would simply restore the interpretation of the law that was intended by Parliament and was believed to be correct by the Government, lawyers, the motor insurance industry and motorists prior to the Vnuk judgment.

It should be noted that the Vnuk judgment has led the European Union to seek to revise the European directive, although it is unlikely to do so in the same way as we propose in the Bill. I argue that, instead of waiting for the European Union bureaucracy to change its ruling, we can do so now, here, in this Parliament. The Bill is therefore an important step in realising the benefits of our decision to leave the European Union.

The Bill would end any associated liability for insurance claims against the Motor Insurers’ Bureau for the cost of accidents on private land where motor insurance is not held. As things stand, the cost of such claims would have to be accounted for within the Motor Insurers’ Bureau charging levy, thus passing on the cost to the motor insurers, who in turn would pass it on to the consumers through insurance premiums—the very point made by my right hon. Friend the Member for East Yorkshire.