Government scraps controversial Vnuk insurance law

The Vnuk insurance law required all vehicles even those used on private land to use a type of third party only insurance cover

PR Racing BMW Joe Francis, Brad Jones

THE government, with successful lobbying from the MCIA, has decided to scrap the controversial Vnuk insurance law this week.

The law was meant to enforce a minimum level of insurance cover on all vehicles, regardless of whether they were used on private land or not.

2021 Honda X-ADV introduction

New 2021 Honda X-ADV Walkaround | First Look to the New Honda X-ADV 2021 |

It would have meant anything, from motocross bikes to ride on lawnmowers would have required the extra cover. Had the law been implemented in the UK, the insurance industry would have been liable for around £2 billion in costs. Once passed on to consumers it was estimated it would have meant British drivers on average would be paying around another £50 per year.

Speaking of the news, Transport Secretary Grant Schapps 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.

“Scrapping this rule would save the country billions of pounds and is part of a new and prosperous future for the UK outside the EU – a future in which we set our own rules and regulations.”

What is Vnuk?

The Vnuk rule would have meant any collisions between vehicles on private land would have been investigated in the same way that a road traffic accident would be. From club racing to MotoGP, the cost of that alone was estimated to be around £458 million.