‘Catastrophe’ warning over insurance proposal

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Published on 1 June 2018 by Robert Drane

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Filed under Category: BMF News

Motorcycle manufacturers in the UK say new EU proposals could cause “catastrophic damage” to motorcycle sport.

The proposed changes reflect rulings by the European Court of Justice in the notorious Vnuk ruling in 2014. In that case, the court decided that vehicles should be insured for any use consistent with their normal function as a means of transport, regardless of whether they are on or off the road. If this were applied to motor racing, such sports could become much more expensive or potentially even impossible to insure.

The commission says the plans are designed to beef up existing rules to better protect victims of motor accidents. However, the Motorcycle Industry Association (MCIA) hit out at the proposals on June 1 and pointed out that insurance premiums have already shot up in countries where third party liability insurance has been applied to motorsport events.

Tony Campbell, CEO of the MCIA said: “It is now vital that our motorcycle sport and industry partners across Europe move swiftly to lobby both the European institutions and other EU member governments. In the UK alone, motorcycle sport is estimated to be worth £1 billion which rises to around £11 billion across all forms of UK motor sports.
 
“Whatever the outcome of these new proposals, the government must take action in order to avoid the catastrophic damage that will be inflicted on motorsport across the board if this ruling turns into law – even if this means defying Brussels.”

The EU proposals are now out for consultation, which closes on 24 July.

According to research commissioned by the MCIA, an average 4,000-plus track and off-road events each year attract almost two million spectators and more than 55,000 riders.

 

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