Statement From @Mondello_Park re European Court of Justice #Vnuk Insurance Ruling
We at Mondello Park have been aware of the Vnuk Insurance ruling from the European Court of Justice for a number of months and the potential unintended impact it could have on our own business and the Motorsport category in Ireland. To that end we have been working with our colleagues in the UK and across Europe to gain support for an amendment to the proposed Motor Insurance Directive.
The Vnuk judgement from the European Court of Justice in September 2014 reinterprets the EU Motor Insurance Directive (2009/103/EC)2 and requires all 28 EU member states to make unlimited third party motor insurance compulsory for all vehicles wherever they are used.
Prior to this ruling, the scope of most EU mandatory motor insurance referred to use being on a ‘public place or road’, and had a clearly defined extent of ‘vehicles’ and their ‘use’.
This ruling unless amended, will have detrimental effects across all EU motorsport businesses as the insurance industry have stated that “participant” to “participant” unlimited liability cover is uninsurable and won’t be available. Motorsport in the EU currently provides over 100,000 jobs and generates €25 billion in revenue. In an Irish context we have over 4,500 license holders and hold over 300 licensed events annually across all forms of motorsport on both two and four wheels.
The European Commission recognises the need for the amendment to the Insurance Directive to address this issue, and is shortly to produce a road-map which clearly outlines their plan to approve and implement this amendment which will exempt all motorsport in the EU. For this to take place the European Commission must have majority support from all 28 EU national governments, and then obtain majority support from 751 MEPs in the EU Parliament to confirm the resulting legislation.
We have met with Brian Hayes MEP, Eoghan Murphy TD and Alex Sinclair CEO of Motorsport Ireland to discuss the issue and to garner support at national and EU level. Brian Hayes and Eoghan Murphy fully understand the potential economic and social implications of this “Motor Insurance Directive” to both the Irish motorsport category and other sectors of industry if it is not amended. To this end, both Brian Hayes and Eoghan Murphy are working with the relevant authorities in Ireland and Europe to secure the appropriate amendment prior to the new EU insurance directive being enacted in October 2016.
Mondello Park Ltd