By Peter Allchorne & Michael McCabe
|Published 21 May 2024
On 20th May, the Automated Vehicles Act received Royal Assent after a quick and non-contentious passing by parliament.
The Act, which implements the recommendations made by the Law Commission of England and Wales and the Scottish Law Commission (the Law Commissions) after a 3-year review of regulation for self-driving vehicles, has been long awaited by both the motor vehicle industry and insurers.
The Act introduces several concepts the Law Commissions recommended in their extensive final report. It provides for a regulatory and liability scheme that will affect vehicle users, insurers, manufacturers, Authorised Self-Driving Entities (ASDEs) and No-User-in-Charge (NUIC) operators.
It creates vehicle testing and licensing requirements, information sharing requirements, and civil and criminal sanctions for non-compliance. It also introduces marketing restrictions around automated vehicles, including the prohibition of certain terms and marketing that would be likely to confuse users about a vehicle's self-drive capabilities.
Questions, though, still remain around issues such as safety and access to data.
In a statement, Jonathan Fong, manager for General Insurance Policy at the Association of British Insurers, applauded the Act's safe passage through parliament but urged caution, saying:
“While this [Act] represents a significant step forward, further consideration is needed to address concerns around safety and cyber security. It’s critical that insurers have access to relevant data in order to support the adoption of this technology.
We look forward to continuing to engage with the Government and other stakeholders on these issues so that we can all fully harness the exciting opportunities automated vehicles present.”
While the way has now been opened to a radically different vehicle transport system, it is likely to be some time before there is a significant shift in the make-up of the UK car parc, with most 'self-drive' vehicle systems expected to be limited (at least initially) to confined driving environments, such as motorways and car parks.
Even though the Act is now in force, significant consultation with industry stakeholders is still needed in order to help shape the various regulations that will need to be drawn up to add the necessary flesh to the bones of the primary legislation
At DAC Beachcroft, we will continue to support our clients in this crucial and fast-developing area.
To discuss the Act or any issue arising out of it, please contact Peter Allchorne or Michael McCabe.
Peter Allchorne
Partner
Bristol
Michael McCabe
Consultant
London
