News Release: Government reviews motor insurance laws

After a recent ruling by the European Court of Justice, Heritage Car Insurance is warning drivers that they could see huge changes to motor insurance law, which will improve the way victims can claim compensation in a wider range of circumstances.

This review was prompted by a ruling by the European courts in 2014 which resulted in the Vnuk judgment, a case which has now sparked a review of the current motor insurance law and will have an impact in the UK regardless of the EU status.

The UK government is currently consulting on the potential amendments and Heritage is encouraging people to have their say before March 2017 and take the Government survey.

The Vnuk judgment has generated some potentially costly consequences and challenges to motor insurance. Mr Vnuk, a farm worker, was knocked from his ladder by a trailer attached to a tractor which took place on private land. When he tried to claim for damages against the insurer of the tractor, he lost the case due to the wording of the current Directive.

So what does this mean for a driver and their insurance policy? Mark Wilkinson, Managing Partner at Heritage Car Insurance, comments: “The main benefit of making changes to the motor insurance laws will be to support victims who suffer damages on private land and other circumstances that are not currently protected, but this may have consequences.”

What does this mean for you?

  1. More victims of accidents will have a straightforwardroute to compensation.
  2. More people would need to buy an insurance policy.
  1. There could be a price increase to annual premiumsto cover the increase in potential claims from your insurance provider and the MIB (Motor Insurance Bureau).
  2. If you own a vehicle which is SORN(Statuary Off-Road Notification), then currently this removes the need for road tax and motor insurance. However this scheme could have to change in light of the new options the Government is facing.
  3. If the Government considers a wider range of vehicles then a decision must be made about what penalties would be imposedif there was a failure to comply. The penalties may vary depending on the vehicles from conventional car drivers.
  4. If the Government considers a wider range of vehicles then these vehicles may need to be registered on the MID(Motor Insurance Database).
  5. There is a potential for fraud to increase. Given that many of the accidents under the comprehensive option will occur on private land away from CCTV and witnesses; this could increase temptation for people to make fraudulent claims. Particularly if people see the MIB as a source of compensation.
  6. The police may also become inundated with reportswhich will add complications to their current roles.

What this means for UK motor insurance

The Government is now reviewing the law governing motor insurance. The intention is to provide means of compensation for victims of accidents that aren’t necessarily on roads or public areas. UK motor insurance will be affected. There are two main options that the Government will decide between – either the comprehensive option or the amended directive option. Further information can be read about this here.

What can you do?

Your opinion counts. If you would like to find out more head to the Government website and have your say. The consultation period began on 20th December 2016 and will end on 31st March 2017. Your responses need to be posted before the closing date. There is an online survey for you to complete here.


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Notes to Editors


About Heritage:

Heritage Classic Car Insurance is the classic car insurance branch of Norton Insurance Brokers. Norton Insurance was launched by Founder, Chris Wilkinson, from his then home in Kings Norton, Birmingham in 1965.

Family-owned and run, Heritage is trusted by more than 28,000 customers and has been providing high quality car insurance, with a personal touch, for over 50 years.


Issued on behalf of Heritage Classic Car Insurance by Gough Bailey Wright, St Johns House, 16 Church Street, Bromsgrove, Worcester, B61 8DN, Tel: 01527 579555. For further information please contact: Michelle Ivins, or Richard Harris,