A court case involving an accident on private land has triggered a debate with The Court of Justice of the European Union (CJEU) about changes to the UK Road Traffic Act. If changes go ahead, they could have significant, wide-ranging implications for UK drivers and businesses motor insurance.
The case was directed to the CJEU due to triggering issues about whether compulsory third party motor insurance should be applied to vehicles working off road. The case of Damijam Vnuk v. Zavarovalnica highlighted that compulsory motor insurance only covers vehicles for road use and transport, not for damage caused when they are used as machines on private land. This caused friction when Mr Vnuk tried to claim after he was hit from a ladder by a tractor at a farmyard. The court denied his claim due to the current rules and regulations of the current Road Traffic Act.
The ruling
The case was referred to the CJEU for review to discuss whether the vehicle should be covered by compulsory third-party motor insurance. After consideration, the CJEU ruled that it should apply to ‘any use of a vehicle that is consistent with normal function of a vehicle’ identifying that if the vehicle is being used in the same way it would be on the road the owner must have compulsory motor insurance.
The impact
The interpretation of the law is likely to impact such uninsured working vehicles as forklifts and lawnmowers. However, the real issue for the UK is that the new interpretation is contradicted by what the current UK Road Traffic Act details. The UK law states that a motor insurance policy does not extend to use on private land and only to ‘use on roads or other public places’. This means the new interpretation will undoubtedly cause a change in the UK law and will need to be revisited.
The changes are likely to impact the definition of the vehicle that must be insured to include any ‘mechanically propelled vehicle intended for travel on land’ e.g. tractor. It is likely to remove any restrictions on its use and of course, extend the scope for compulsory motor insurance to include use on private land.
Although it is yet unclear as of when the discussions will start and when the changes will come into place, there is potential that it could take more than a year.
Jelf will continue to monitor any changes to the Road Traffic Act and will continue to keep our clients and readers up to date.
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