Europe – ACEM, the European Association of Motorcycle Manufacturers, the trade association that represents manufacturers of motorcycles in Europe has welcomed the position of the Internal Market Committee of the European Parliament on the MID – Motor Insurance Directive.
As we previously reported over the last couple of years, the “Vnuk Judgement” concerned a 2014 decision of the Court of Justice of the European Union (ECJ) in relation to the judgement’s possible effects on proposed changes to motor vehicle use and motor insurance within the European Union.
“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. 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 was seen as requiring all vehicles to have compulsory insurance when in use which would could have come into effect through the European MID.
Vehicles “in use” brought within the scope of the MID by virtue of the Vnuk judgment are: 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).
This would mean as interpreted by many, that whether these are parked on farms, motor (racing) tracks, on private land (no public access), or having a vehicle on a private dwelling, this MID would have a major effect regarding motorsports and changes for “normal” on road insurance.
However there seems to be some major movement on the issue as regards motorsports.
ACEM welcomes the position of the Internal Market Committee of the European Parliament on the MID
ACEM reports that in May 2018 the European Commission proposed a review of the MID, aiming at strengthening the rules on motor insurance and to enhance the protection of motor vehicle accidents’ victims. In its legislative proposal the European Commission proposed to clarify the scope of this Directive based on the recent case law of European Union Court of Justice.
This resulted in a proposal to include motorsports in the scope of the Directive without making a vital distinction between traffic and non-traffic situations. Further to this, a coalition of organisations led by the International Automobile Federation (FIA) and bringing together the European Association of Motorcycle Manufacturers (ACEM), the International Motorcycle Federation (FIM), the All-Terrain Vehicle Industry European Association (ATVEA) expressed their concerns about the damaging consequences of the Commission’s proposal for motor sports in Europe.
During the parliamentary discussions on the file, the members of the Internal Market Committee (IMCO) of the European Parliament adopted a report recommending excluding “vehicles intended exclusively for motorsports” from the scope of the Directive, “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 report also made it clear that it was necessary to draw a line between “in traffic” and “non-traffic” situations in the scope of the Directive.
Commenting on this debate, ACEM Secretary General Antonio Perlot said: “ACEM welcomes and congratulates the work of the European Parliament and of its rapporteur Ms Dita Charanzová, who has shown a true understanding of the concerns shared by key stakeholders, particularly the severe implications for motorcycle sports and related leisure activities in Europe”.
“The motorcycle industry in Europe calls now on Members of the European Parliament to support the decision adopted by the IMCO committee during the next European Parliament Plenary session that will take place on 13 February 2019 in Strasbourg. A similar approach should be followed by the Council of the EU during the upcoming trialogue negotiations which will take place later in 2019”.
FIM Europe
FIM Europe – Fédération Internationale de Motocyclisme – recently commented on this after the FIM Europe Non-Sporting Council met in Rome discussed issues that would effect motorcycling outside sporting matters..
One the 22nd January 2019, the EU Parliament – at the Committee stage – will agree a text on the review of the EU Motor Insurance Directive. FIM Europe is confident that this will exclude motorcycle racing from the scope of the revised law. During this meeting, the FIM Europe Public Affairs Commission was concerned to note that the Socialist Group in the EU Parliament was still calling for motorcycle racing to be included.
Mr. Dimitris Margaritis said, “We agree with the report. The extension of road insurance onto the race track whether it is for car or motorcycle racing makes no sense. This is the effect of the judgment in the Vnuk case which was litigated in front of the European Court of Justice (ECJ), the highest Court in the European Union. It makes no sense that the EU Commission is attempting to incorporate this decision – and that in other cases – into the revised law.”
The FIM Europe Public Affairs Commission is also concerned about a case in Portugal that also reached the level of a decision in the ECJ.
This would require continuous payment for road insurance for all vehicles whether in use or not.
This would penalise collectors and those riders who cancel road insurance in winter time when not using their motorcycle.
The EU Parliament is also addressing this, but the Commission is not convinced on the text they propose.
FIM Europe may have to address this again, after the elections in Europe in May 2019.
IMCO Committee
The European Parliament Committee responsible for presenting an opinion on proposals to the European Parliament as previously mentioned is the Committee on the Internal Market and Consumer Protection – IMCO, the MEP in charge of this the Rapporteur is the Czech Republic MEP Dita Charanzová.
In the IMCO draft report explanatory statement the Rapporteur states, as regards these issues, “There has been some confusion among Member States on which vehicles fall within the scope of the Directive. This concerns in particular, vehicles like eBikes, segways or electric scooters, but also vehicles for instance used in motor sports. The rapporteur believes that in principle the Directive should not cover such vehicles, as the requirement of motor insurance could hinder the uptake, for instance, of eBikes or may unnecessarily increase the insurance premiums for all vehicles.
The rapporteur has therefore proposed that only vehicles, which are subject to type-approval requirements, should fall within the scope of the Directive. However, Member States should have the option of requiring also other vehicles to have compulsory insurance cover, if they deem it necessary. As regards the definition of “use of a vehicle”, the rapporteur believes it important to clarify that this implies a vehicle used in traffic, both on public and private roads, but not in cases where the vehicle is used exclusively in a closed area, with no access from the general public. If, however, such a vehicle -that is used both in closed areas as well as in traffic and consequently is obliged to have motor insurance cover -is involved in an accident in a closed area, the insurer of the vehicle should still be liable vis-a-vis injured parties.”
Motorcycle Minds – This will still have implications for drivers in the UK – UK drivers and users still visit and work in Europe using their vehicles for leisure/work/sport and as so do European drivers and users outside the UK.
British Dealer News reports from the Motorcycle Industry Association (MCIA) in the UK which brought together a coalition of UK groups with Tony Campbell, MCIA CEO, commenting,
“This is great news and a big relief for motorsport of all types. The potential impact of the proposal would have been catastrophic and likely to result in the end of motorsport as we know it.
The MCIA Public Affairs team was the first to recognise the threat and as such was instrumental in achieving this great result.
Whilst Brexit may have created an opt-out for UK motorsport, 80% of the UK motorsport economy is derived from export to the EU and therefore there would be no escape for the motorsport business world. The MCIA will continue to follow this through to the final outcome and we would like to thank the ACU and AMCA who have partnered our efforts throughout.”
The MCIA previously stated, “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.”
However, nobody knows at this time where the UK will be after March, when withdrawal from the EU should occur with a deal – no deal – or an extension on time to leave the EU.
Certainly for Europe, all that is left now is for the European Parliament to agree with their Committee, for the Member State Governments to agree (Council Of Ministers) and finally the European Commission to agree, along with European Elections for MEPs due in May, it is simple really but that is how it works, the rules and regulations not just guidelines!
Sources – ACEM welcomes the position of the Internal Market Committee of the European Parliament on the MID – FIM Europe Non-Sporting Council in Rome Fiumicino (Italy) – British Dealer News – MCIA Welcomes ‘Positive Signs’ On VNUK – IMCO Committee – Motorcycle Minds – MCIA Condemns Applying VNUK – Motorcycle Minds – Decision On Vnuk? – Motorcycle Minds – The Vnuk Judgment
Information Motor Insurance Directive
Procedure File – Motor Insurance Directive: Compensation of victims of motor vehicle accidents, insurance conditions and cover, combatting uninsured driving
Explanation to and draft ammendments to the proposed directive
The scope of the Directive should exclude vehicles used for motorsports as they are limited to a controlled track or space and thus the chance of an accident with unrelated vehicles or persons is limited. Also, they usually are subject to other forms of liability insurance that correspond better to their specific situation. Therefore, Member States should still be able to impose compulsory insurance but it should be done at Member State level.
Use of a vehicle in traffic includes the use of a vehicle in circulation on public and private roadways. This includes all driveways, parking lots or garages, docking and unloading stations or any other equivalent areas on private terrain which are accessible by the general public. The use of a vehicle in a closed area, where no access is possible by the general public, should not be seen as the use of a vehicle in traffic and therefore should not lead to an obligation to hold compulsory insurance.
Nonetheless, when a vehicle is used in traffic at any point and therefore subject to compulsory insurance, Member States should ensure that the vehicle is covered by an insurance policy that covers potential injured parties, during the contracted period, regardless of whether the vehicle is in traffic or not at the time of the accident, except where the vehicle is used in a motorsports event.
The addition of MID requirements would only add an additional cost. Insurance companies might also shift the risks of sporting events into the premiums of normal vehicle users.
Once a vehicle has an insurance because it will be used in traffic on public or private roads, insurers should be required to cover those vehicles even when outside traffic. The validity of the insurance policy should not depend on its use. For example, a farming tractor which is never used in traffic would not be required to hold motor third party liability insurance. But for those farming tractors that do have motor third party liability insurance insurance in order to use a road that insurance should always be valid no matter if the tractor is on the road or in a field at any given time. Accidents with insured vehicles can happen at any moment, insurers should not be able to deny coverage based on location at the time of the accident.
EU Agrees Motorsport Is Worth Protecting
Published 06/23/2021
The European Parliament, European Commission and the European Council have all agreed that motorsport requires different insurance than driving on the road. This ends years of uncertainty regarding minimum insurance requirements which could have made the sport impractical or too costly to run.
Via a procedure known as a trilogue, the institutions of the European Union have agreed that new changes to the existing laws on motor vehicle insurance should specifically exempt motorsport activities. This exemption relies on alternate insurance being in place which is specifically tailored for motorsport. This insurance is currently commonplace in motorsport and is better able to handle the unique circumstances of competition to “avoid overregulation”.
There are still some formalities to go through before the legislation becomes adopted as law at EU level (which should be done by the end of 2021). Following this, EU member states will be required to write the legislation into their national law by the end of 2023. However, many member states have laws that are similar, so this may have already happened or will only require minor changes of wording.
The original campaign dates back to 2014 when a farm accident led to a change in the interpretation of EU motor insurance law. Prior to this, it was assumed in most countries that EU motor insurance law only related to vehicles on public roads or in public places such as car parks. However, the Court of Justice of the European Union ruled that all uses of vehicles in all places (including vehicles on a racetrack) needed to have a minimum of 3rd party motor insurance.
The FIM, FIA and ACEM, alongside their members and related associations, lobbied to change the legislation to specifically exempt motorsport. Motorsport already has a complex set of insurances that compensates participants, volunteers and spectators for financial losses. If the existing legislation did not change, then individual riders would have to be individually insured which would have added cost and complexity without necessarily improving outcomes for the people involved. This would have made the cost of participating in motorsport, particularly for young amateur riders, far too expensive with insurance premiums of several thousand euros per rider expected.
The FIM would particularly like to thank MEP Dita Charanzova and her team and the Portuguese Presidency of the European Council for their efforts in concluding these trilogues and for supporting the motorsport sector during a very challenging time for the world. We would also like to thank then-MEP Vicky Ford for her assistance in initially raising the issue to the European Commission.
FIM President Jorge Viegas said: “This outcome is warmly welcomed by the FIM and represents a sensible and pragmatic conclusion to the discussions. Motorsports are unique and recognising them as such in legislation is important to ensuring that our competitors, volunteers and spectators are properly covered when things go wrong.”
FIM Mobility
Original Source – FIM – Click Here
Parliament backs changes to EU Motor Insurance rules
Latest from the FIA Region 1 which looks at backing by the IMCO committee to the EU Motor Insurance Directive which deals with more that sporting issues.
FIA Region I welcomes the Report on the revision of the Motor Insurance Directive adopted by the European Parliament’s Committee on the Internal Market and Consumer Protection (IMCO) on 22 January. The report defines further the scope of the Directive, foresees the portability of claims history statements across the EU and introduces safeguards against insolvent insurers, overall enhancing the legal protection of drivers across the EU.
MEPs have clarified the mobility modes that should be covered by the legislation. For instance, the report electrically power-assisted bikes would fall outside of the obligations of the Directive.
The Committee has proposed to improve the portability of claims-history statements with standardised forms that, if adopted, would make the lives of drivers moving to other Member States easier.
As supported by FIA Region I, the report establishes a system to allow for compensation of victims that face insolvent insurers, and introduces the victims’ right to obtain a full copy of the accident report, as well as an increased limitation period to four years.
Laurianne Krid, Director General at FIA Region I said “We welcome the general direction of the IMCO Committee’s Report as it complements the Commission proposal, solving some of our concerns. Indeed, it adds important guarantees for the injured parties and improves the protection of drivers when travelling across Europe. We strongly hope the Council will not oppose to these key improvements”
However, FIA Region I regrets IMCO’s decision to leave the bonus/malus schemes as a Member State competence. The harmonisation of such system in the EU would ensure the mutual recognition of such schemes when moving cross-border and in turn, strengthen consumer rights.
Read FIA Region I’s position on motor insurance
Original Source – Parliament backs changes to EU Motor Insurance rules