Mallon’s Motor Vehicles (Compulsory Insurance) Bill passes to prevent increases in motor insurance premiums

Infrastructure Minister Nichola Mallon has welcomed the completion of the Final Stage of the Motor Vehicles (Compulsory Insurance) Bill which will prevent an increase in motor insurance premiums.

Motor insurance is a devolved matter for Northern Ireland. The purpose of the Bill is to ensure that domestic statutory provision on compulsory motor insurance - as contained in the 1981 Road Traffic Order - remains effective. It does this by ensuring that the requirements of the Motor Insurance Directive, and any retained EU case law – are not taken into account when interpreting the compulsory motor insurance requirement in Northern Ireland.  The Bill has completed its legislative passage today and is expected to become law by May 2022. 

Speaking in the Assembly,  Minister Mallon said:  

“This  important piece of legislation will avoid  an inevitable increase in motor insurance premiums,  saving an estimated £50 a year on every driver’s policy, an expense that motorists will without doubt want to avoid at this challenging time for households dealing with other soaring household bills.

"This legislation will also ensure that in Northern Ireland compulsory insurance requirements remain confined to the use of motor vehicles on roads and other public places.  It will also provide clarity in the marketplace; and remove the risk to the Motor Insurers’ Bureau against additional claims, some of which may be expected to be fraudulent, and which it is not funded to discharge.

"At a time when people across the North are facing price hikes, in food, fuel and energy, I have acted to protect them from another spike when it comes to motor insurance premiums. This comes on top of my recent decision to freeze transport fares and action to ensure that water charges are not introduced into Northern Ireland. With people struggling, it is critical that those of us with power use whatever power we have to protect people from additional spiralling costs.”

Notes to editors: 

1. More information about  the Motor Vehicles (Compulsory Insurance) Bill is available here: Motor Vehicles (Compulsory Insurance) Bill (niassembly.gov.uk)
2. All media queries should be directed to the Department for Infrastructure Press Office at: press.office@infrastructure-ni.gov.uk.
3. The Executive Information Service operates an out of hours service for media enquiries only between 1800hrs and 0800hrs Monday to Friday and at weekends and public holidays. The duty press officer can be contacted on 028 9037 8110.
4. Follow the Department on Twitter @deptinfra and on Facebook @DepartmentforInfrastructure

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