Autonomous vehicle report highlights ship insurance issues
Despite being one of the oldest means of transport, shipping is commonly seen today as lagging behind the aviation and automotive sectors in a number of areas. The latest hot topic in this area is autonomy. While autonomous aircraft are frequently used for military and surveillance purposes it is likely that passengers will still prefer piloted craft. However, research into autonomous vehicles and marine craft is continuing at a pace. Autonomous ships may be some years away but cars are already in use in small numbers causing a rethink of the regulatory regime around them. And that may have some implications for shipping as well. Last year the UK government’s Centre for Connected and Autonomous Vehicles (CCAV) published a consultation seeking views on proposals to support advanced driver assistance systems and automated vehicle technology. Some initial responses to the consultation have just been published. The comments on insurance are quite interesting. The key objective in this area was to ensure that the rights of victims of incidents involving autonomous vehicles was not jeopardised and what the liability of the insurer would be. The government proposed that compulsory insurance for autonomous vehicles is implemented through a single insurer model. In other words, the insurer covers both the driver’s use of the vehicle and the AV technology itself, so that the driver will be covered when they are driving and when they have activated the automatic technology. Something along those lines already applies to ships which of course even today can sometimes be operating on autopilot. But there are two circumstances where the insurer will not be liable:
- when the driver failed to install required updates to the vehicle’s software
- where the driver makes unauthorised updates to the vehicle’s software.