The law stems from a European Court of Justice ruling concerning a man knocked off a ladder by a reversing tractor and trailer in Slovenia (Vnuk v Zavarovalnica Triglav (2014) C-162/13). Under Vnuk, tractors, quad bikes, buggies and other similar vehicles would need to be insured, even if they are never used on public roads.
Transport secretary Grant Shapps said implementing the law in the UK would cost an extra £2bn in insurance costs.
However, Sam Elsby, president of the Association of Personal Injury Lawyers (Apil), said the decision ‘not to adopt an EU rule that would ensure much-needed compensation for people injured by off-road vehicles is illogical and inexcusable’.
‘Paying insurance premiums is both an incentive to drive safely, and a way to ensure injured people can receive proper compensation to help put their lives back on track.’