The Government has criticised a recent EU Directive soon to be in force, under which the Motor Insurers' Bureau (MIB) will have to cover the cost of repairs to cars of uninsured drivers hit by other uninsured drivers.
The ruling has been met with criticism from the motor industry with many, including the MIB, describing the principle of using premium paying motorists money to pay for the damage to an uninsured (and illegal) driver's car as "crazy".
The new EU Directive will be in force from 1 March 2017 and whilst the UK is still part of the EU it has a legal duty to implement the new rules. Failure to enforce the Directive could lead to the Government being fined and taxpayers paying "Francovich" damages to uninsured drivers. However, Secretary of State for Transport, Chris Grayling, has said he intends to repeal the new EU Directive when the UK leaves the EU.
The EU decision marks the second time this year the UK has been obliged to implement a change in EU law irrespective of the UK's future outside the EU. We recently reported on the Government's consultation to decide how to amend the UK's legal position to accord with the judgment in Damijan Vnuk v Zavarovalnica Triglv d.d.
The ECJ extended the definition of 'use of a motor vehicle' to include any use that is consistent with the vehicle's normal function and is not limited to merely use of the vehicle as transport on a public road. The ruling has been interpreted as requiring compulsory insurance for any vehicle used on private property, which is currently inconsistent with UK law.
In both these instances, until Brexit is complete, the Government will be in the unenviable position of implementing EU Regulations they are wholly against.