Media Release                                                                                     3 June 2020

IUA CALLS FOR CLEAR REGULATION OF E-SCOOTERS


E-scooters should be restricted to use on roads and not permitted on pavements, the International Underwriting Association has recommended in a statement to the UK Parliament. At the same time there should not be a blanket approval for all types of micromobility vehicles, but each one considered on a case-by-case basis.

The views of the London company insurance market on the subject were submitted to a public inquiry launched by the House of Commons Transport Committee. The UK is the last major European country where e-scooters are banned everywhere except on private land. They are, however, increasingly popular and likely to become more so as commuters seek alternatives to public transport in the wake of the Covid-19 crisis.

“It is essential that pedestrians are properly protected as the roll out of e-scooters in the UK is considered,” commented Chris Jones, director of legal and market services at the IUA. “Our members expect that these vehicles would be limited only to low speed roads and should perhaps be initially trialled on cycle lanes.

“There must also be absolute clarity about the regulation of e-scooters. A framework must be developed that plainly spells out the obligations of users, manufacturers, rental scheme providers and other road users.

“Although illegal, incidents involving e-scooters are currently paid for by the Motor Insurers’ Bureau (MIB) as they are technically classified as uninsured vehicles. This situation is problematic for both insurers and their customers as the MIB is funded directly by a levy on the premiums paid by all motor insurance policyholders.”

The IUA in its submission to the Transport Committee has not called for compulsory insurance for e-scooters and recommends that the market be allowed to evolve naturally and develop its own solutions. Compulsory insurance is not required for cycles and could be a disproportionate requirement for e-scooters.

Mr Jones added: “There is a clear potential for environmental and social benefits from the use of e-scooters, including reduced congestion and pollution. Successful uptake, however, is likely to be dependent on the availability of appropriate road infrastructure.”

In addition to submitting IUA member comments to the Transport Committee the association has also discussed this subject in a roundtable event organised by the Forum of Insurance Lawyers and at the Insurance and Financial Services All Party Parliamentary Group with Craig Tracey MP. A second consultation response is being prepared for a complementary inquiry launched by the Department for Transport on micromobility vehicles.

Ends

Contact:
Scott Farley                                                                                         
Director of Communications                                                                 
International Underwriting Association                         
Tel: 0207 617 4449
Mobile: 07876 758 637                                                            
E-mail: scott.farley@iua.co.uk                                                  

Notes to Editors:
About the IUA
The International Underwriting Association of London (IUA) represents international and wholesale insurance and reinsurance companies operating in or through London. It exists to promote and enhance the business environment for its members.
The IUA’s London Company Market Statistics Report shows that overall premium income for the company market in 2018 was £28.437bn. Gross premium written in London totalled £19.559bn while a further £8.877bn was identified as written in other locations but overseen by London operations.