Law of Compulsory Motor Vehicle, The
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CHAPTER 13
Insurance of automated vehicles
Insurance of automated vehicles
13.1 SAE International’s report1 classifies vehicles into six categories in line with their level of automation. Accordingly, where a vehicle is driven by a full control of the driver there is no automation. One step ahead of this type of conventional vehicle is where the driver and the vehicle share the control of driving in the form that “driving assistance” is provided by the vehicle and active driving is performed by the human driver. The assistance may be in terms of the driving environment or steering or accelerating or decelerating the vehicle. It is very common for vehicles to provide a warning sound in terms of the closeness of other properties surrounding in parking the vehicle. The next stage is “partial automation” where the human driver performs active driving, but more assistance is provided by the vehicle compared to level two stated before. A further level is “conditional automation” which is described as specific performance by an automated driving system of all aspects of the dynamic driving task with the expectation that the human driver will respond appropriately to a request to intervene. A more advanced automation is specific performance by an automated driving system of all aspects of the dynamic driving task. In this “high automation” form, the vehicle performs the task even if a human driver does not respond appropriately to a request to intervene. Finally, where all aspects of the dynamic driving task are performed by an automated driving system under all roadway and environmental conditions that can be managed by a human driver occurs where there is full automation. 13.2 One of the obvious questions that such developments have brought into daily life is insurance of liability for use of automated motor vehicles. The UK Department for Transport and the Centre for Connected and Autonomous Vehicles carried out a consultation seeking views on proposals for people and businesses in the UK to use automated vehicle technologies and advanced driver assistance systems.2 The objective of the consultation was to propose making amendments to primary legislation to ensure insurance products will be available for arrival. The consultation period was followed by the government’s response to feedback from business and the public across the UK along with the associated impact assessment which provided details of the government’sPage 269
Automated vehicles defined by the Act
13.3 AEVA 2018 applies to vehicles which allow the driver to disengage from the driving task, handing full control to the vehicle when the automated systems are active. As SAE’s definitions above reveal, automated vehicles (AV) technologies are different to Advanced Driver Assistance System (ADAS) where the driver must monitor and remain ready to take control from the vehicle at all times. AV, on the other hand, when the Automated Driving Function (ADF) is active, does not require any intervention by any person. This happens where the vehicle operates in a mode in which it is not being controlled, and does not need to be monitored, by an individual.6 Hence, amongst the different levels of automation listed above, only the last two will fall under the scope of the AEVA 2018, and insurance of the rest will be subject to the conventional insurance regime as examined throughout this book. 13.4 As discussed elsewhere in this book so far, in the UK what is required to be insured is not the vehicle, but the user of the vehicle. Further, for the purposes of the compulsory MTPL insurance, the user must be liable to the third party for their negligent use of the vehicle. The obvious question with regards to AV is how can the compulsory insurance requirements be extended to cover traffic accidents resulting from a malfunction or failure of the automated system? In the conventional insurance context what is looked for to establish liability, among other things, is an element of human error in the way the accident has occurred. In the AV, how can it be determined if there was an error? Who would take the responsibility for the error? The absence of an actual human being driving the vehicle causes the main hurdle at this stage. 13.5 The first requirement under the AEVA 2018, which would enable the Act to be applicable, is that the Secretary of State must prepare a list of all motor vehicles that are designed and capable and may lawfully be used when driving themselves on roads or other public places in Great Britain. As a result of the recent developments in the EU law,7 if the UK will still be under the obligation to implement the EU law in the near future, this section is required to be amended given that the compulsory insurance requirement under the RTA 1988 will have to be extended to private lands as well as public places.8 13.6 Section 1(1) of the Act also stipulates that the list is to be updated by the Secretary of State. Further, the Secretary of State is required to prepare a report assessing the impact and effectiveness of the list made under section 1 and to what extent the provisionsPage 270
Liability
13.7 For the reasons highlighted above, the initial questions to raise with regards to insurance of automated vehicles is who is the user of the vehicle and how can insurance of automated vehicles fit in the conventional motor vehicle third party liability insurance? 13.8 The AEVA 2018 stipulates a single insurer model which covers the driver when they are driving and when they have activated the ADF. The insurer will pay out to the third party victim where10- (a) an accident is caused by an automated vehicle when driving itself on a road or other public place in great Britain,
- (b) the vehicle is insured at the time of the accident, and
- (c) an insured person or any other person suffers damage as a result of the accident.
in the case of an automated vehicle, the policy must also provide for the insurer’s obligations to an insured person under section 2(1) of the AEVA 2018.… In this subsection “insured person” means a person who is covered under the policy for using the vehicle on a road or public place in Great Britain.