Driven by need (climate change) or circumstances (Covid-19) transport habits and use are changing frequently bringing new challenges to insurers, claims and underwriters and a lot of information to absorb.
In this article we outline what we have noted to be happening in the different areas and we start with an overview of the current statistics.
Transport statistics
The Government has kept more detailed statistics on transport in the wake of Covid-19.
The latest statistics indicate that while overall transport levels on the road are higher than before the Covid-19 pandemic at 104%, public transport is still below the January 2020 total, bus use excluding London stands at 90% whilst the London figure is 88%. This is probably because of the change in working habits with the return to the office being on average 2-3 days a week. The stats can be viewed here. (Gov.UK 09.10.24).
How smart are smart motorways?
According to a Panorama investigation not very! National Highways' latest figures suggest if you breakdown on a smart motorway without a designated hard shoulder you are three times more likely to be killed or seriously injured than on one with a hard shoulder.
The technology used to manage smart motorways has stopped working hundreds of times according to the BBC. The Government has stopped new smart motorways being built but approximately 10% of UK motorways remain smart, 79 plus deaths suggest otherwise – depending on the facts of an accident surely there could be an argument if a claim is made that a contribution should be sought from the Department of Transport.
Where are we with e-scooters?
In short, nowhere in terms of legislation, things have not moved on over the last 3-4 years. The only E-scooters that can legally be ridden on the roads are those involved in the Government/Local Authority hire schemes. Whilst a lot of bad behaviour occurred in the early days (pavement riding, multiple users, below age use, riding under the influence of alcohol) riders then realised the hire was linked to their driving licences and any penalty points imposed as a result of scooter offenses appeared on their driving licence.
Most of the issues have involved privately owned E-scooters being ridden illegally and often they are poor quality products with speed enhancements.
The new Government has not yet indicated its position on E-scooters and micro-mobility and what legislation will be introduced. The trials run to 2026 so no answers are imminent, despite recommendations in 2020 from the DFT and PACTS that E-scooters should be legalised with regulation on age, speed, power and use.
In Ireland E-scooters have recently been legalised, the data produced by this development will be interesting and helpful for the UK market.
The latest statistics on E-scooters in Britain can be accessed here. (Gov.UK 26.09.24). They show a fall in serious incidents and fatalities between 2022 and 2023.
In relation to Civil Liability we do not yet have a judgment on the potential defence of ex turpi causa and it needs to be adjudicated upon. It has been argued in pleadings and in Court but no finding has yet been made. Will it be a complete defence or will the argument lead to a reduction for contributory negligence?
What about e-bikes?
It was initially thought E-bikes presented less of an issue perhaps because they are more like a traditional bike and sturdier in build, however, there have been concerns because souped up E-bikes able to travel up to 70mph have appeared on the roads.
New figures released by 27 police forces confirm a steep increase in the number of seizures of E-bikes which have been illegally modified to travel faster than 15.5mph which is the permitted speed.
A freedom of information request confirmed the police have seized 937 E-bikes in the year to August 2024 up from 511 in the previous year.
Fire risk lithium batteries
London Fire Brigade reported 155 fires caused by E-bike batteries and scooter batteries in 2023 up 78%.
It is good to see legislation is being introduced with the lithium-ion battery bill currently making its way through parliament. Hopefully as knowledge improves – basically do not charge indoors unsupervised - fires will reduce.
Ebay has just announced a ban on private sales of E-bikes on the platform and also sale of batteries due to the fire safety concerns. The ban comes in on 31 October 2024. The ban should also reduce the number of E-bikes being adapted.
Are EVs becoming more popular?
It seems external factors including the cost of living crisis and the lack of public charging points has slowed the growth in sales of EVs compared to sales of traditional ICE powered cars nevertheless electric vehicles now total over 1.2m on UK roads approximately 4% of the total vehicles up from 0.5% in 2020.
The Labour Government has reasserted a net zero pledge with a ban on sale of new petrol and diesel cars from 2030.
A major issue for motor insurers is the rising cost of claims; E-vehicles are expensive as are their parts, in particular the battery. This could lead to many EVs being written off. In addition, the length and cost of hire claims could increase because of the lack of EVs available for hire, credit hire firms will take full advantage. Also, there are skills gaps amongst mechanics and engineers relating to the new technology which could lead to longer repair periods.
Automated vehicles
Although the Automated and Electric Vehicles Act 2024 was passed into law in July 2024 a lot of secondary legislation is needed to add much needed detail. In particular what will be the position of the MIB?
The aim is for automated vehicles to be on our roads by 2026 but many say this is an ambitious target.
It is likely the most progress will be made in relation to public transport and commercial vehicles rather than private motor vehicles.
The CAV Forth Trials of automated buses continue with five autonomous single deck vehicles travelling a distance of 14 miles between Fife and Edinburgh across the Forth road bridge. The buses operated by Stagecoach East Scotland are used autonomously to level 4 standard which means a driver must remain on board during any journey in line with UK regulations. The trial is due to end in 2025. At the moment another member of staff travels on the buses as well as the driver to reassure passengers that the buses are safe to travel on. It is anticipated if the trial is successful the buses could provide an estimated 10,000 weekly journeys with the buses capable of carrying 42 passengers per trip.
Floating bus stops
It is probably no surprise that floating bus stops do not float! However there has been a number of calls for an end to what is in reality a cycle lane running behind a bus stop. Visually impaired people say with some merit that these bus stops are dangerous because they have to cross the cycle lane to get to and from the bus stop. According to TFL the number of accidents are low saying there have been five pedestrian casualties involving cyclists and one involving an E-scooter in the cycle lane over a three year period. These incidents are often under reported and it is common place to see E-scooters in cycle lanes so this scenario could give rise to a number of personal injury claims.
Wales speed limit reduction
In Wales a 20mph speed limit was introduced, Wales was one of the first countries in the world to pass a law changing the speed limit and restricted roads to 20mph, restricted roads are usually in residential and built-up areas where there are a lot of pedestrians.
The Welsh Government believe this decision will reduce the number of collisions and severe injuries and encourage more people to walk and cycle and make the streets safer.
The future
In the United States Tesla CEO Elon Musk has championed autonomous driving, most recently he has unveiled the company's robo taxi and cyber cab with no steering wheel or pedals. Musk predicted they will be available in 2026 but then reverted to before 2027.
He has promised the robo taxis will cost less than $30,000 and he announced plans to bring autonomous driving to his Model 3 and Model Y Tesla cars in California and Texas by next year.
The position in Europe is less advanced but VW announced they would start offering robo taxi test drives to customers in Hamburg.
So watch this space in the ever-changing world of transport and autonomous driving and micro-mobility where we also now have remote controlled illegal electric skateboards zipping along pavements and public roads crashing into vehicles, they are classified as motor vehicles and therefore require registration, insurance and a licence to ride.
Yesterday, the Transport Select Committee gave an update of sorts in relation to e-scooters, stating that whilst there was no time in the current parliamentary session to legislate on e-scooters, this could be expected 'soon'. At least some news in this area and confirmation that it is on Louise Haigh's to do list.
Where will it all end?
Contact Ruth Graham for more on anything Transport. DWF are members of the Confederation of Passenger Transport.
