Motorsport takes another positive step in long-running insurance threat

14
Feb
2019

The Vnuk insurance issue threatening motorsport took another positive turn today, as the European Parliament formally adopted a new proposal excluding motorsport from the Motor Insurance Directive (MID).

Vnuk is a 2014 European Curt judgement, ruling that the requirement for compulsory insurance should cover any use of a vehicle, so long as that use is consistent with the normal function of the vehicle. This would require all competition cars in motorsport to have compulsory third party insurance.

In January, the European Parliament’s Internal Market Committee (IMCO) approved a report recommending that motorsport should not be impacted by Vnuk. Today, the Parliament formally adopted the amended proposal by 562 votes to 36, with 19 abstentions.

The amendment recommended the exclusion of “vehicles intended exclusively for motorsports, as these vehicles are generally covered by other forms of liability insurance and not subject to compulsory motor insurance when they are solely used for a competition”. The European Parliament also includes an appropriate distinction between vehicles used in traffic and vehicles used in non-traffic situations.

The next stage will be negotiations in the Council of the EU, followed by a ‘trilogue’ process involving negotiations between the Council of the EU, the European Parliament and the European Commission.

Hugh Chambers, CEO of Motorsport UK, said: “This is more good news for motorsport in the UK, which has faced an uncertain future ever since the Vnuk judgement was delivered over four years ago. We’ll keep working behind the scenes towards the common-sense outcome that secures the future of our sport. Once this has been achieved, our competitors will be able to carry on competing in the safe, fair and suitably insured environment that Motorsport UK provides."

Motorsport UK has been lobbying to safeguard motorsport from Vnuk since 2014, working closely with the world governing body, the FIA, and taking the issue to the highest levels of government.

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