The UK Government will scrap a new EU law requiring vehicles such as fork-lifts, golf buggies and quad bikes to be insured like a car or van.
The ‘Vnuk’ law requires a wider range of vehicles than those such as cars and motorbikes to be insured, including ones previously not requiring insurance.
The law also extends to vehicles on private land, meaning people with a ride-on lawnmower at home would require insurance where it would have previously not been needed.
Had the EU law been implemented in Great Britain, it would have meant the insurance industry would have been liable for almost £2 billion in extra overall costs.
Bypassing Vnuk will also protect the existence of the UK’s motorsports industry as the EU rules would have meant any collision involving vehicles from go-karting to Formula 1 would have been treated as regular road traffic incidents requiring insurance.
Transport Secretary Grant Shapps 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.”
The move is supported by Logistics UK. James Firth, head of Road Freight Regulation Policy at the organisation, said: “Implementation of the ‘Vnuk’ ruling into UK law would have been wholly unnecessary; the type of operations that would have been brought into scope by the ruling – for example, use of forklift trucks – are in most cases covered already by companies’ Public Liability or Employer Liability insurance. Logistics UK is pleased by the government’s decision today; it will prevent many logistics businesses being subject to additional and unnecessary costs and administrative burden.”