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Government scraps EU Vnuk law requiring insurance for vehicles used on private land

Government scraps EU Vnuk law requiring insurance for vehicles used on private land

The controversial EU Vnuk law, which requires insurance on private land for a wide range of vehicles, has been scrapped, the Government has announced.

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The controversial EU Vnuk law, which requires insurance on private land for a wide range of vehicles, has been scrapped, the Government has announced.

The removal of the law means British drivers can avoid a potential £50 a year insurance hike.

The Vnuk law requires a wider range of vehicles than those such as cars and motorbikes to be insured, including ones previously not requiring insurance, including golf buggies, mobility scooters and quad bikes.

It also extends to vehicles on private land, meaning people with a ride-on lawnmower at home would require insurance where it would have previously not been needed.

Private land owners would have had to insure quad bikes and golf buggies under the Vnuk law

Private land owners would have had to insure quad bikes and golf buggies under the Vnuk law

Private land owners would have had to insure quad bikes and golf buggies under the Vnuk law

If the EU law been implemented in Britain, it would have meant the insurance industry would have been liable for almost £2billion in extra overall costs.

It is likely these costs would likely have been passed on to motorists.

As Brexit has now been enforced, the measures no longer need to be implemented, meaning drivers across the country steer clear of increased premiums.

Grant Shapps, Transport Secretary, said: ‘We have always disagreed with this over-the-top law that would only do one thing – hit the pockets of hard-working people up and down the country with an unnecessary hike in their car insurance. 

‘I am delighted to announce that we no longer need to implement it.’

The rules are also considered unnecessary as there are already insurance packages available to Britons that cover certain risks on private land.

The Association of British Insurers has previously called on government to stop these regulations coming into force. 

Change: Motorsports would have also been affected by the introduction of the Vnuk law

Change: Motorsports would have also been affected by the introduction of the Vnuk law

Change: Motorsports would have also been affected by the introduction of the Vnuk law

Mark Shepherd, head of general insurance at the ABI, said: ‘We welcome the Government’s plan to scrap this unnecessary requirement. This should happen as quickly as possible.

‘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 increasing the scope for fraud, that ultimately ends up being paid for by motorists through their insurance premiums.’

Calum McPhail, head of liability claims at Zurich, added: ‘The Vnuk decision introduced the potential that otherwise uninsured risks and costs would have to be met by the UK motor insurance industry despite the fact that no premium would have been obtained and therefore unfairly passing the costs to UK motorists.’ 

Scrapping the Vnuk also protects the UK’s motorsports industry as the rules would have meant any motorsports collision involving vehicles from go-karting to F1 would have been treated as regular road traffic incidents requiring insurance.

This could have damaged the industry due to the additional insurance costs of roughly £458million every single year.

The Government said removing the rules will save the industry from potential collapse and secure hundreds of thousands of jobs in the sector in the process. 

This is Money has contacted Motorsport UK for comment.  

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This post first appeared on Dailymail.co.uk

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