FINAL GPSJ Summer edition 2024 ONLINE VERSION.2pdf - Flipbook - Page 12
GPSJ
TRANSPORT
Thatcham Research welcomes landmark
Automated Vehicles Act – though some
insurance questions remain unanswered
used. Otherwise, there is a risk of
confusion, and potential danger, if the
performance of a system does not
match its advertised capabilities
Despite the positive progress the
AV Act represents, some insurance
questions associated with the safe
adoption of AVs remain unanswered,
which the Insurer Requirements
report details:
Who is liable in the event of an
Automated Vehicle collision?
Thatcham Research welcomes
the Automated Vehicles Act
2024 which received Royal
Assent earlier this year.
This important automotive legislation
provides robust guidelines for the
future of autonomous travel within
the UK, introduces clear definitions
of automated vehicles (AV), safety
principles and demands for the
transition from vehicle to driver.
The UK is now better placed to
embrace this emergent technology,
allowing for greater commercial and
private use of AVs, an industry with
earnings potential of up to £62bn by
2030 according to the SMMT.
To support the AV Act’s progress
through the Houses of Parliament,
and the creation of subsequent
secondary legislation, Thatcham
Research and the Association of
British Insurers (ABI) collaborated
on the ‘Insurer Requirements for
Automated Vehicles’ report, offering
industry expertise and strategic
recommendations.
It details four key asks from the UK
motor insurance industry required
for AVs to be safe and insurable in
the UK:
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• Safety First - Automated
vehicles should have clearly
defined capability and
operational constraints so
users understand their role
and responsibilities when
using an AV.
• Visibility – Transparency
of an AV’s authorisation
process when driving, its level
of functionality, and software
authorised for road use.
• Data Access – To
ensure that consumers are
protected, and insurers
can fulfil their obligations
as per the Automated and
Electric Vehicles Act 2018
(AEVA 2018)[4], timely and
unhindered access to data
is required.
• Cyber security – Vehicle
systems and connectivity,
either by the vehicle
manufacturer or other source,
must be robust to detect and
mitigate the risk of a cyberinduced incident.
GOVERNMENT AND PUBLIC SECTOR JOURNAL SUMMER 2024
One aspect of the UK market the
act addresses is the terminology
used to describe automated or
self-driving automotive technology
in advertising. For example, Tesla
currently advertises ‘full self-driving
capability’ as an optional feature on
their vehicles, despite this technology
being classified as an assistance
system.
The introduction of the AV Act
prevents Tesla from using this
terminology as it could be considered
misleading because the system
requires active supervision from the
driver which therefore does not make
the vehicle autonomous. The act will
make terms such as ‘automated’ and
‘self-driving’ protected from misuse.
In order for automated vehicles
to be accepted and trusted by the
public, clear terminology must be
There must be clarification on who is
liable should an AV be involved in a
collision and whether it is operating in
an automated mode
Motor insurers will be liable for
accidents caused by an AV when
driving autonomously, as defined by
the Automated and Electric Vehicles
Act (AEVA) 2018.
This means, if an AV causes an
accident, the driver will rightfully be
entitled to compensation for thirdparty injury. However, this introduces
another potential claimant against the
vehicle’s own insurer.
This is only possible if the vehicle
is operating in automated mode,
therefore it’s essential to identify
whether it was the vehicle or the
driver in charge at the time of the
accident.
It is the opinion of Thatcham
Research that secondary legislation
includes a requirement for collision
data to be immediately available on
a neutral and equitable basis to the
insurer to establish who was driving
and what decisions were made in an
automated vehicle incident.
What are the capabilities of
an Automated Vehicle?
While the AV Act sets out the
framework for the approval and
authorisation of automated vehicles,