1. ASTIN & AIDA Working Party on
Automated cars and insurance – PROGRESS REPORT AS OF APRIL 2019
Dr. Kyriaki Noussia
Senior Lecturer in Law
Law School, University of Exeter, UK
Prof. Dr. Sara Landini, Law Faculty, Univ. of Florence, Italy

2. Introduction – Background
4th Industrial Revolution (Industry 4.0)
placed the system of driving vehicles at a new stage
Human factor
 substantially reduced or maybe even eliminated  

3. Introduction – Background
Ways
 we direct, possess, are responsible for driving  will alter
Types of risk and the liability for adverse events
change dramatically
Need
 new legal regulation and novel ways of risk management, including insurance.

4. Introduction – Background
ASTIN –AIDA WP
cooperation between AIDA lawyers & ASTIN actuaries (Non-life section of International Actuarial Association)
First such joint working party ever.
Current presentation – report on joint work of AIDA – ASTIN
Work undertaken:
AIDA (Kyriaki Noussia, Sara Landini, Peggy Sharon)

5. Introduction – Background
Legal Instruments taken into account
Convention of Vienna on Road Traffic of 8 November 1968
Declaration of Amsterdam of April 2016 of the European Ministers of Transportation
EU Motor Vehicle Liability Directive
EU Product liability Directive

6. Introduction – Background
Legal Instruments taken into account
European Commission (DG Grow) - GEAR 2030 High Level Group on the Competitiveness and Sustainable growth of the Automotive Industry in the European Union
European Commission (DG Grow) - Cooperative, connected and automated mobility (CCAM)

7. Current legal status quo
Regulations from countries marked on map below

8. Brazil, Uruguay, Peru, Chile, Singapore
No specific laws regulating automated vehicles
Motor insurance doesn`t contain special conditions about AV in the General Clauses

9. Japan More than 20 automated car testing projects on public road
Going on in Japan.
One guideline & One criterion for testing AV on public road
Issued by National Police Agency of Japan.

10. Japan
Traffic Law
There is no special legislation for automated vehicle Level 1 and Level 2.
Level 3, 4 and 5 AV considered and interpreted not covered under the current Traffic Law.
New legislation for level 4 and 5 autonomous vehicles is scheduled after 2020.

11. Japan
Civil liability
Traffic accident liability laws and system in Japan
Automobile Accident Compensation Security Act
– operator of automobile
– liable to compensate for the death or bodily injury caused to any other person arising from the operation of the automobile

12. Japan Exempt from liability if
1. The driver did not fail to exercise due diligence
2. There was intent or negligence on the part of the victim or a third party
3. There was no structural defect or functional disorder in the automobile.
Property damage is treated differently
driver not be liable for any damage
unless there was intent or negligence

13. Japan
AVs Study Group
There are several study groups on autonomous vehicles and liability. Study Group on liability for AV Level 3 and 4(2020 to 2025).
Report in March current liability system is good enough and should be maintained.

14. Japan AVs Study Group - Suggestions:
Bodily injury caused by hacked cars should be compensated by a pool funded by Compulsory Automobile Insurance premiums
New duties of operators (updating software/programs and repairing the vehicles) should be discussed.
AVs should be able to drive or stop safely even if outside systems or networks go down.
Liability of Level 5 will need to be discussed in the near future

15. Japan The Government Council on Investments for the Future
Guidelines for AV (March 2018)
1. Automaker will be responsible if there is a clear flaw in the vehicle’s system.
2. AVs need bare devices record location, steering etc.

16. Japan
Insurance
Several Insurance companies are selling ins. policies for AV testing projects
Optional policies that covers collisions between AVs and property damages not covered by compulsory automobile liability insurance.

17. Germany
Laws dealing with liability of driver driving in autopilot modus
s/he must be ready to take over the car whenever the systems requires her/him to do so or
s/he realizes that there is something wrong with the autopilot
Motor insurance policies
no clauses specifically addressing cars equipped with autopilot and/or accidents caused by a failure of the autopilot or the driver.

18. Poland No legal provisions referring to common use of AVs
Law on Road Traffic defines AVs
Requires the permission of the public body managing the road to perform tests of AVs
Compulsory liability insurance contract

19. USA
Regulation
There is both federal and individual state regulation AVs
(41) states and the District of Columbia
AV legislation/ executive orders.

20. USA Regulation - At Federal level
2017/9 - House of Senates passed SELF DRIVE Act
establishes the federal role in ensuring the safety of highly AVs
Department of Transportation (DOT) requires safety assessment certifications
For the development of a highly automated vehicle or an automated driving system.
The National Highway and Transportation Safety Administration (NHTSA) has released new federal guidelines for Automated Driving Systems (ADS).

21. USA
Insurance
liability insurance  will shift from personal automobile to products liability
Mercedes, Volvo and Waymo  agreed to accept full liability for vehicle accidents while their vehicles are using automated technology.
Tesla  extending an insurance program to purchasers of Tesla vehicles.

22. USA Insurance AIDA ASTIN suggestion
 AV owner/operator need cyber-insurance (data protection)
 Also covering property damage or bodily injury from cyber-risks

23. TURKEY Current legislative instruments in place
 no provisions specifically drafted to cover AVs
The general conditions (standard form contracts) applicable to motor insurance  free from special conditions relating to the risk of road traffic arising from use of AVs

24. SOUTH AFRICA
No current laws or proposals for laws  regulate circulation of AVs
Re the definition of motor vehicle
 No indication as to where AVs will fit in
 Road Accident Benefit Scheme Bill  amended to specifically provide for AVs / exclude them

25. ISRAEL No specific laws for AVs Regulatory change  closer than ever
Several AV pilot programs  scheduled to launch in Israel 2019 onwards.
May 2018  First regulatory change concerning AVs
Regulation 16a  added to the Israeli Road Traffic Regulations

26. ISRAEL National Road Traffic Inspector
 may exempt an experimenter from traffic regulations
Inspector to consider
Safekeeping of the users of the road and of the participants therein.
Limiting the disturbance of the traffic flow which may be caused by the experiment.
Responding to emergency events which may occur during the experiment.

27. ISRAEL
“Experiment”
 use of new technology, or new use of existing technology
 to check its functioning in the road

28. ISRAEL
“Experiment”
 use of new technology, or new use of existing technology
 to check its functioning in the road

29. NEW ZEALAND None specific laws regulating AVs
Legality of AVs  described as a “grey area” although not prohibited by law.
New Zealand government  eager to promote New Zealand as testing ground for AVs
Motor insurance policies
 no specific conditions or exclusions for AVs
not yet commercially available in New Zealand.
AV user would need have insurance cover

30. ITALY No legislation for circulation of AVs.
28 February 2018  Ministerial Decree - Smart Roads Decree
authorising and regulating the testing of AVs and providing for consequent insurance coverage

31. ITALY Smart Roads Decree provides for:
technological and digital adaptation of the road network and infrastructure
a series of conditions and requirements for implementing trial testing;
defines characteristics of AV systems for admission to public road testing;
identifies obligations of the holder of authorization for testing;
a special content for compulsory third-party liability insurance (special (high) ceiling).

32. ITALY
AIDA ASTIN aspects to be included in a framework of common rules at European level:
Identification of types of risks to be covered
New risks related to product defects,
New Risks related to electronic technologies (e.g. software reliability, danger of unlawful practices of tampering or hacking by third parties, dangers related to the protection of personal data)
Spatial risks;

33. ITALY
New actors: manufacturer, software developer, operators of satellite networks.
Identification of distribution strategies and business models for risk attribution
The product liability model to be evaluated and consider new IT, space risks.

34. UK
8/11/ 2018 the English and Scottish Law Commissions – Analysis of Remote Vehicles
Automated and Electric Vehicles Act 2018 (AEVA 2018)
First piece of major legislation in EU on the insurance consequences of remote vehicles
Act not yet in force  will be implemented whenever the need arises
Supplements the compulsory insurance regime in Road Traffic Act 1988.

35. UK
Effect of the 2018 Act
strict liability on insurers of a remote vehicle for loss by accident involving remote vehicle
no human defendant
claim to be brought directly against the insurers
removal of human operation will be replaced with a series of new risks from manufacture and guidance of remote vehicles
new coverage for such risks is required
property damage, covers any damage to property other than the vehicle itself

36. UK Effect of the 2018 Act - Particular Exclusions of Coverage
AEVA 2018, s 2(6), s 4(1)
exclude liability for damage where the insured's person's injuries are the "direct result" of:
(a) software alterations made by the insured person and prohibited under the policy, or
(b) a failure to install safety-critical software updates

37. UK Effect of the 2018 Act - Particular Exclusions of Coverage
An insurer is not permitted to exclude liability for such "cyber risks" under AEVA 2018.
AEVA 2018, s. 3 - reduction of the insurer's liability where the injuries suffered were partly that party's own fault.
AEVA 2018, s 3(2) - insurer is not liable at all for damage if accident was wholly caused by the person's negligence in allowing the vehicle to begin driving itself when it was not appropriate to do so.

38. UK Effect of the 2018 Act - Particular Exclusions of Coverage
AEVA 2018, s 3(2) - insurer is not liable at all for damage if accident was wholly caused by the person's negligence in allowing the vehicle to begin driving itself when it was not appropriate to do so.
This does not apply to any other person who suffers injury, and it is a bar only to recovery by the person in control.
AEVA 2018 imposes liability upon insurers, but permits insurers to recoup its payments from others who may have been responsible for the damage.

39. ASTIN & AIDA Working Party on
Automated cars and insurance – PROGRESS REPORT AS OF APRIL 2019
Thank you!
Dr. Kyriaki Noussia, Univ. of Exeter, UK
Prof. Dr. Sara Landini, Univ. of Florence, Italy