UK Govt. reverse Vnuk motor insurance rule
The James Hallam Sport team is pleased to note that the UK Govt. is to withdraw from the ‘Vnuk’ legislation passed by the EU in 2018, which has been a regular talking point and threat to the UK motorsports industry since 2014, when the law was first considered.
The law, which forms part of the EU’s MID, requires all motorised vehicles to be insured for compulsory and unlimited liability risks, including those whilst being used on private land, so captured the use of racing vehicles, pit scooters, and all other working vehicles operating within the confines of a motor sports venue, including whilst on track.
Securing coverage at the limit of liability required is just not feasible, from either the specialist motorsport liability market who cannot provide such capacity limits, or the motor insurance providers who have no appetite for such risk exposure, so it is timely that the Govt. has made their decision to scrap the ruling.
Our team had highlighted this matter to our clients over the preceding years, and encouraged them to support the Motorsports Industry Association’s campaign to lobby both EU and UK legislators to overturn the ruling, so its good news for the industry to see common sense prevail, at least in the UK.
Within the EU, there is no such liability insurance for motorsport risks available either, and it is understood that there is an appeal to exempt motorsport from the law, let’s hope their policy makers follow ours to keep motorsport on track!