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UK law reforms to clear road for driverless cars

Two proposed legislative reforms, including one to insurance law, will clear the way for automated vehicles to hit UK roads in the next two to four years.

The changes to insurance law will require vehicle owners to have a policy in place that covers manufacturers and other entities’ product liability.

This additional product liability insurance must cover injuries to the “not-at-fault” automated vehicle “driver”, plus passengers and third parties.

Currently, if driverless technology fails and injures the “driver”, the legislation requires insurance to cover third parties only.

“If the [vehicle technology] fails, then the driver, in effect, becomes a victim because their injuries are not a result of their own actions or negligence,” a document from the Department for Transport says. “We need therefore to protect the driver as a potential victim.”

The document also calls for a system to classify automated vehicles, so manufacturers, insurers and consumers are clear on the insurance requirement. The changes aim to “ensure clarity, give victims easy access to compensation and give the market certainty without influencing or preventing different models being developed in the future”.

The other proposed legislative changes concern the Highway Code and regulations on the safe use of remote-control parking and motorway assist features.

The proposals are now open for public consultation.

Association of British Insurers Director of General Insurance Policy James Dalton says his organisation has consulted with the Department for Transport and welcomes the public consultation.

“The development of automated driving will revolutionise motoring – potentially as important a road safety innovation as the seatbelt,” he said.

He says insurers have a key role to play in raising confidence in driverless technology.