Motorsport in Malta Hits the Brakes: Insurance Woes Bring Activity to a Halt
In an unexpected turn of events, the world of motorsport in Malta has come to a standstill, as the Malta Motorsport Federation faces challenges in renewing its insurance coverage for the upcoming season.
The Malta Motorsport Federation, along with its member clubs and insurance broker, began the process of renewing their coverage in the early stages of the fourth quarter of 2023. However, complications arose when the foreign insurance company responsible for issuing their coverage expressed unwillingness to engage in negotiations so early. The company cited the need to assess the international insurance market rating for 2024 before proceeding. It’s crucial to note that no Maltese insurance provider can issue motorsport insurance, and only a handful are available in Europe. Negotiations eventually commenced towards the end of November.
Adding to the complexity, recent changes in EU legislation, specifically Directive 2021/2118, mandate that all motorsport events must be “covered with adequate cover to 3rd parties.” In response to this directive, Maltese authorities insisted on an increase in coverage. Coupled with fluctuations in the international insurance market, the proposal presented to the Malta Motorsport Federation featured a premium increase exceeding 25% compared to the previous year. Deeming this surge excessive, the federation initiated a search for alternative insurance coverage in mid-December.
Unfortunately, the limited availability of insurance providers specializing in motorsport events posed a significant challenge. While exploring alternatives, the federation requested an extension on its current policy to buy time for a resolution. Regrettably, the extension expired earlier this week, leaving the federation with no choice but to instruct all member clubs to temporarily halt all motorsport-related activities.
In a bid to prevent major disruptions to the sports calendar, the Malta Motorsport Federation aims to resolve this issue swiftly. The federation anticipates reaching a resolution in the coming weeks before the competitive season kicks off. The challenge now is not only to reinstate motorsport activities promptly but also to navigate the intricate landscape of limited insurance options in the motorsport sector.
Photo credit: LJ Automotive Photography