We are still waiting for a road map from the Commission in which it is to set out its preferred approach to dealing with the unintended consequences of the Vnuk case on motor – and on other casualty – insurance policies.
That said, a strong clue to its preferred approach – changing the Motor Insurance Directive so that it is restricted to road and traffic accidents – appears deep within the thirty pages of tables of activity and success criteria that comprise the 2016 Management Plan for the Financial Services Directorate-General (DG FISMA). That was published last month and the text below is an extract. The bold emphasis comes from the original.
The target date of Q2 this year may suggest we have not too long to wait before something concrete finally emerges in this area. But this should not be regarded as a given, since the elements of the Management Plan are carefully caveated with the following phrase: “some indicators refer to achievements for which the Commission cannot fully exert control”.
The description above of what the Commission aims to achieve would seem to suggest that a positive outcome which restricts the potentially wide unintended consequences of the Vnuk interpretation looks fairly likely. But the Commission cannot “exert control” over how any “revision” will be regarded by MEPs and other stakeholders and clearly, therefore, there is some way still to go in resolving these issues. Naturally, we are keeping this under review.
About the Author
Alistair Kinley is BLM’s Director of Policy & Government Affairs.
Alistair is responsible for BLM’s engagement with government departments and regulators on policy and public affairs issues and consultations affecting the firm and its customers. He coordinated BLM’s market-facing activities in connection with the Insurance Act 2015 and the consultations which preceded its publication and introduction in Parliament.
He is a member of the Civil Justice Council (CJC), a regular speaker and experienced commentator on legal and procedural reforms and was a contributing editor to the Law Society’s Litigation Funding Handbook (September 2014).