Europe – The Motorcycle Industry Association (MCIA) in the UK has called today on EU member governments and MEPs to reject European Commission proposals which threaten to end all forms of competitive and grassroots motorsport across the EU, including the UK.
MCIA say that, “The proposals arise from a newly tabled EU Directive which amends aspects of the Motor Insurance Directive (MID). It also responds to the 2014 so-called ‘Vnuk’ judgment of the European Court of Justice, which ruled that all mechanically propelled vehicles must have full third-party motor insurance to cover injury, damage and loss, whether used on public roads or private land.”
In 2016 we reported on The VNUK Judgement – “The Vnuk judgement concerned a case before the European Court of Justice about a man (Mr Vnuk) who was injured when he was knocked off a ladder by a trailer that was attached to a tractor, in a barn in Slovenia in 2007. The effect of the judgment is that any vehicle that falls within the Motor Insurance Directives’ definition of a vehicle should have a compulsory motor insurance policy.”
The Vnuk judgement requires all vehicles to have compulsory insurance when in use which included: electrically assisted pedal cycles, construction vehicles, agricultural vehicles, Segways, ride -on lawnmowers, motorsports vehicles, mobility scooters, golf buggies, motorised ride-on children’s toys, fairground rides (e.g. dodgems), fork lift trucks, dumper trucks, engineering plant and quad bikes (off-road construction).
The UK government issued a consultation in 2016 and although the European Commission recognised the significant nature of the judgment and had proposed an amendment to the Directive to limit the effect of the Vnuk judgment.
Here we are in 2018 where the MCIA say, “The European Commission’s proposals represent a complete U-turn from its position of two years ago, when in the wake of the Vnuk judgment, it proposed to exclude vehicles not being used ‘in traffic’ from the MID. This would have made all forms of motorsport exempt from the impact of the Vnuk ruling. The EC has ignored 3,500 consultation responses supporting an exemption for motorsports.”
Stating that, “The insurance industry has already made it clear that it would be difficult to provide such insurance, given the risks, particularly damage to machines, caused by vehicle collisions, common in competition events. In countries where full third-party liability insurance has already been applied to motorised sporting events, premiums have risen to exorbitant levels. As a result, such insurance would make almost all such events unviable.
This will not only affect high level motorsport, but the thousands of people who take part in local events up and down the country. Motorcycle sport generates much needed income in rural areas, with over 1.7 million spectators watching around 55,000 riders attend an average of over 4000 off-road and track events each year.”
Tony Campbell, CEO of the MCIA said: “It is now vital that our motorcycle sport and industry partners across Europe move swiftly to lobby both the European institutions and other EU member governments. In the UK alone, motorcycle sport is estimated to be worth £1 billion which rises to around £11billion across all forms of UK motor sports.
We strongly support UK Government efforts, but our message is clear – whatever the outcome of these new proposals Government must take action in order to avoid the catastrophic damage that will be inflicted on Motorsport across the board if this ruling turns into law – even if this means defying Brussels.”
Not Meeting Expectations
Outside the sphere of the UK the Fédération Internationale de Motocyclisme (FIM) has stated, “The decision in the Vnuk case* has serious implications for the future of motorcycle sport in Europe.”
The FIA – Federation Internationale De L’Automobile has also issued a statement, “The FIA and the European National Sporting Authorities (ASNs) welcome the long-awaited publication of the European Commission’s proposal, which will lead to fruitful exchanges with the European Parliament and the Council of the EU in the coming months.
The modifications proposed by the European Commission unfortunately do not meet the FIA’s expectations. Although the FIA and the entire motor sport community share the European Commission’s objective to better protect the victims of motor vehicle accidents, this proposal could lead to motor sport events being dependent on the will of the insurance companies to cover them.
The FIA and the motor sport stakeholders very much look forward to continuing the exchange with the European Institutions, in order to reach a solution that would still enable millions of drivers across Europe to continue practicing their passion, with the best possible protection.”
Basically nobody is happy and there is a somebody somewhere in the European Commission that needs a serious think about their proposal and heed representation that is being placed in front of them!
Especially pertinent right now as ten of thousands of voting citizens attend the Isle of Man TT races as citizens across Europe attend in their thousands at many varied motor events.
Although the Isle of Man would not be directly affected as it is neither in the EU, or the European Economic Area (EEA) there would be unintended consequence, as riders/driver/competitors do not only race or reside on the Isle of Man. If riders/driver/competitors cannot afford to race or motorsport in general is not protected in Europe, then what hope is there for racing on the Isle Of Man.
These spectators have a passion of the sport like all motor race fans. If that passion is under serious threat would that drive them to protest if guided to outside the office of the European Commission in Brussels?
Information MCIA – UK – Brexit will not remove this threat. The directive will still apply until December 2020 under current plans. After this, in order to avoid the MID, the UK would need to leave the Single Market and ensure the MID is not included in any customs deal or ‘union’ which is negotiated. Full membership of the European Economic Area would mean that the MID and other Single Market regulations will continue to apply in the UK.
Original Source – MCIA condemns European Commission move to end motorcycle sport
FIM – Fédération Internationale de Motocyclisme
“In the FIM’s view, if the proposed clarification of the scope of the MDI is interpreted to include use of vehicles in some or all forms of motor sport, this would have serious implications for the practice of motor sports activities in Europe in the future as it could lead to motor sport events being dependent on the willing of the insurance companies to provide the requisite cover at an affordable cost.”
“The FIM therefore urges the parties involved in the legislative process to take steps to evaluate the real impact of mandatory third-party liability insurance on all motor vehicles being used in such a way that they fall within the proposed definition.”
“Commenting on the proposal, FIM Europe President Dr. Wolfgang Srb stated: “We recognise the efforts of the European Commission to reflect the decisions of the European Court of Justice upon several cases, including the Vnuk one. However, the unintended consequences of these judgment must be resolved by the EU institutions to avoid having an adverse wider impact. FIM Europe will continue to attend to each stage in the process and do everything to assist in obtaining a resolution”.”
Read Full Details – Here
Review of the Motor Insurance Directive – Proposal for a directive
The European Commission has launched a consultation relating to insurance against civil liability in respect of the use of motor vehicles, and the enforcement of the obligation to ensure against such liability
The Commission would like to hear your views from the 24 May 2018 – 24 July 2018.
The consultation deals with more than just rulings which have clarified that motor vehicles are intended normally to serve as means of transport, irrespective of such vehicles’ characteristics, and that the use of such vehicles covers any use of a vehicle consistent with its normal function as a means of transport, irrespective of the terrain on which the motor vehicle is used and of whether it is stationary or in motion. The ruling makes it clear that accidents caused during the normal use of a vehicle for the purpose of transportation, including its use on private properties, remains within the scope of the Directive.
There is very little mention directly of the impact on motorsports in the four documents including impact assesments to the review.
Reference to:
Only the UK provided a calculation of the effect of the application of the scope of the Directive – addition premium costs for the UK – Motorsport £229 million.
The Finnish authorities confirmed that Finland already requires MTPL (Motor Third Party Liability) insurance in a manner compatible with the Vnuk judgement of the CJEU (Court of Justice of the European Union), also with regard to motor sports, and stated that motor sports thrive in Finland at both professional and amateur level.
Majority of responses call for a particular treatment for the motor sports sector in the Directive, and are presumed (even where this is not explicitly stated) to be inspired by the Motor Industry Association campaign. Most (but not all) of these responses are from the UK.
Message from Chris Aylett, Chief Executive of the Motorsport Industry Association appeared during the consultation at the URL https://www.the-mia.com/Vnuk-Update
Briefy what was being stated was – “In simple terms, the EC plans to issue a new Motor Insurance Directive, as a result of which all EU Member States must put into their National Law compulsory and unlimited third-party liability insurance to cover personal injury between motorsport competitors and car-to-car damage during any competition – from Formula One, Moto GP, World Rally to karting, historic and grass roots, whether regulated by the FIA or FIM or not. However such widespread unlimited new insurance is not currently, and, we understand, will not in the future be available – so motorsport will be unable to continue anywhere in the EU.”
Finally the commission has stated, “Regarding the scope of the Directive, an annex to the impact assessment explains that existing ECJ case law will be codified via a definition of “use of a vehicle”, given that no evidence has been provided by stakeholders that the scope as defined in the case law will generate any excessive costs. Indeed, certain Member States already impose a motor third party liability insurance requirement in line with the case law, without excessively high insurance premiums, including for motor sports events.”
The key elements of the directive are:
For now as regards motorsports and the removal from the directive then the lead should be left to those who have been and continue to be involved!
Original Source – Review of the Motor Insurance Directive – Proposal for a directive