Following Transport Secretary Chris Grayling’s announcement at the beginning of this year that legislation would be introduced to extend compulsory motor insurance to cover product liability for motorists using autonomous vehicles, the Government has now published its Automated and Electric Vehicles Bill.

The Bill, which reflects the earlier proposals, maintains a single insurer model, with one insurer covering both the driver’s use of the vehicle and the autonomous vehicle technology.

In the event of an accident, an injured party shall be able to recover from the insurer of the vehicle without concern that an argument might ensue as to whether driver or technology was to blame, which could result in a delay in compensation. 

When a crash is determined to have been caused by an automated vehicle the insurer will have a right of recovery against the responsible party, which could include the manufacturer of the vehicle.