Vnuk: increasing costs for businesses?

The Vnuk problem

The original case arose from an injury claim in which a Slovenian worker was knocked off a ladder by the trailer attached to a reversing tractor on a farm.  The ECJ ruled that as this vehicle was intended to be used on a road, it should be covered by the compulsory motor insurance regime under the 6th Motor Insurance Directive (MID).

More specifically, the decision was that compulsory motor insurance applied to any vehicle being used anywhere, for any purpose, for which it was intended.  Such a wide ambit encompasses all sorts of vehicles traditionally covered under EL and PL policies, for example agricultural vehicles, construction vehicles, forklift trucks, EBTs and driveable aircraft steps.

How this ruling is interpreted among European courts is up for debate and is currently being considered by the EC. The outcome will have significant ramifications for the general insurance arrangements of corporates.

Action plan

A much-awaited action plan from the European Commission (EC) on how to deal with the ramifications from the European Court of Justice (ECJ) decision in Damijan Vnuk v Zavarovalnica Triglav remains elusive, much to the frustration of governments, insurers and businesses across Europe.

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REFIT of European motor insurance: Vnuk one of four measures to be addressed

Having been largely silent for a year about how to tackle the Vnuk problem (i.e. the extended scope of compulsory motor insurance to any normal use, anywhere, of any motor vehicle) the European Commission appears to have picked up the pace significantly in just announcing a new four-week consultation period running from 24 July to 21 August.

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Brexit: the return of the Italian Torpedo

The letter to be delivered on Wednesday to the European Commission will have the most profound consequences for this country: your own view as to whether this will be for good or ill will probably reflect your position as a Remoaner or a Brexiteer. What is however certain is that whether the UK’s Article 50 letter is brief and to the point or rather longer as a positioning paper, the devil will rest in the detail of the subsequent negotiations of how Britain and Europe untangle 43 years of EU Law and jurisprudence. The knottiness of the problem is illustrated by a report (in fact merely the 17th report of the session) published by the House of Lords EU Committee which considers some of the access to justice issues that are entangled with Brexit.

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