22/08/2003

UK motor insurance under review

A new review of motor insurance in the UK will look at ways of reducing the number of people driving without cover, it has been revealed.

The review will produce recommendations for improving the effectiveness of compulsory motor insurance, which provides third party cover to protect the victims of road accidents.

The review follows recommendations on reducing vehicle crime made by the Jill Dando Institute of Crime Science, which highlighted the high level of uninsured driving in the UK compared to the rest of Europe.

A key task for the review will be to consider the practical implications of the UK system of 'insuring the driver' against the system of 'insuring the vehicle' which operates in other parts of the European Union.

The review will not consider government provision of motor insurance through tax-based or levy-based systems.

Announcing the plans on Thursday, UK Transport Minister David Jamieson confirmed that economist Professor David Greenaway would carry out the independent review.

(MB)

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