Compulsory motor vehicle insurance is to be extended to protect victims of crashes caused by driverless cars.
The Department of Transport published its response last week to a consultation on driverless cars, also known as automated vehicle technology (AVT) and advanced driver assistance systems (ADAS).
The consultation, Pathway to driverless cars, which closed on 9 September, looked at what regulatory barriers to the introduction of AVT and ADAS could be removed, insurance requirements for automated vehicles and the regulatory framework for driving such vehicles.
The department said minimum legislative changes will be made to enable the insurance market to develop automated vehicle insurance products. However, it will be compulsory to have insurance to protect victims where the vehicle causes a crash in automated mode.
The department’s response states: “The victim will have a direct right against the motor insurer and the insurer in turn will have a right of recovery against the responsible party to the extent there is a liability under existing laws, including under product liability laws.”
Nicholas Bevan, solicitor and motor insurance specialist, said the department had accepted his and other respondents’ “concern that whilst the automated driving function is active, the driver would, in effect, be a passenger, necessitating statutory intervention to compel insurers to meet claims without the victim having to prove a product defect was causative”.
“It reflects our concern (in the company of various other respondents) over the causational and other difficulties faced by claimants in pursuing and establishing a product liability claim. It has accepted that insufficient protection would be provided under its initial proposal (which we criticised) of simply imposing a duty on owners and users to have product liability cover or just incorporating such cover within an existing third party motor policy without more.
“I think this is a major achievement.”
The department said it would bring forward a Modern Transport Bill this year.
