EU ruling makes no sense for drivers

A Shropshire insurance expert has slammed a European Union ruling that demands even uninsured motorists must be compensated if their cars are damaged in an accident.

Martin Pitchford, from Henshalls, said the new law was set to come into effect in March and could increase motor insurance premiums and claims.

“This is just an absolutely crazy rule that penalises honest premium-paying motorists to compensate damage to an uninsured driver’s car, and it’s a crying shame that it seems there’s absolutely nothing that can be done about it.”

Mr Pitchford was speaking in the wake of reports that said Transport Secretary Chris Grayling claimed he had no choice but to apply the new ruling in the UK as the Government was still bound by the EU.

Under the current UK rules, a £250 million industry fund pays out compensation claims to drivers hit by uninsured motorists.

“To meet this bill, the Motor Insurance Bureau charges every insurer a levy, which is passed on to drivers through their premiums,” said Mr Pitchford.

“Motorists who are crash victims in the UK do not currently receive compensation if they are uninsured – but now, the EU wants a common system across Europe so that no driver is excluded.

“How can this make any sense? It’s clear that law-abiding UK motorists are being exploited and all for the sake of drivers who fail to comply with insurance legislation.”

Mr Grayling has said the EU would fine the UK if the new ruling was not applied to British motorists after the March deadline, but he has reassured the industry that the issue will be revisited after Brexit.

He said: “As a result of European law, the Government is forced to make these changes to the compensation paid out by the Motor Insurance Bureau as we are bound by our EU obligations. But we are leaving the EU and we will want to come back to this,” said Mr Grayling.

Mr Pitchford welcomed that reassurance and said wiping out the EU ruling would be a victory for common sense.