Predictions of post-Brexit breakdowns within the haulage industry have appeared with depressing regularity in the news over the past few months. Finally, however, there is some good news for anyone involved in haulage jobs. In a move that the Director General of ABI has described as ‘common sense’, the Government has committed to an anti-Green Card stance for UK drivers after Brexit.
No Green Card Necessary
The Department for Transport has said that British hauliers will not have to get Green Card documentation from insurers when they drive in the EU following Brexit. Experts in the logistics industry had expressed concerns at the administrative disruption the mandatory use of this documentation would cause, as well as the disruption to haulage jobs caused by extra border checks.
BIBA, the ABI and the Motor Insurers Bureau have been in collaboration over the past 18 months, in order to present their concerns to the Department for Transport. Their efforts were rewarded recently, as senior officials from the DfT wrote to ABI to inform them that the UK will be kept within the Motor Insurance ‘Free Circulation Zone’ post-Brexit. This means that drivers will be able to enter EU member states using their domestic motor insurance policy and will not have to provide any extra documentation. This is the same policy that other non-EU member states, such as Switzerland and Andorra, have as part of the Free Circulation Zone.
What’s Wrong with Green Cards?
The Green Card system is outdated and unpractical in the modern world. Little changed since the 1970s, the documents are still issued on green paper, cannot be sent electronically, and must be carried at all times. The Green Card system would have caused massive administrational disruption for commercial operations, as each individual vehicle needs its own documentation. It could also cause problems for individual drivers, as if they lose or misplace the papers whilst on overseas haulage jobs, they would have to wait for replacement documentation to be sent to them. The same problem would occur if a driver’s insurance was up for renewal whilst they were out of the country. Finally, last-minute haulage jobs would certainly have become more challenging, as it is unclear how much notice an insurer would need when a vehicle goes overseas. This would cause disruption both to fleets and to clients.
Under the Green Card system, costs would inevitably have risen for hauliers due to extra administrational work and the need for the creation of new systems to deal with the issuing of the documentation.
Green Cards Gone for Good?
The decision made by the UK Government still needs approval from the European Commission, who must also set an introductory date for the UK to enter the Free Circulation Zone. However, the Government is confident that the Commission will agree to their proposals, as they have demonstrated their ability to meet cross-border insurance claims involving UK drivers.
Although there are still plenty of important decisions to be taken to decide the fate of the UK haulage industry post-Brexit, the banishment of Green Cards is an outcome hauliers can welcome with open arms.
Norman Dulwich is a Correspondent for Haulage Exchange, the leading online trade network for the road transport industry. Connecting logistics professionals across the UK and Europe through their website, Haulage Exchange provides services for matching haulagejobs with available drivers. Over 5,300 member companies are networked together through the Exchange to fill empty capacity, get new clients and form long-lasting business relationships.
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