Reckless driving

The Danish reckless driving law (vanvidsbilisme) came into force on 31 March 2021. The purpose of the law is to prevent reckless driving, as well as street racing, drunk driving, and similar offences.

The law strengthens the existing rules on the confiscation of vehicles involved in cases of reckless driving. The rules apply regardless of who owns the vehicle, which means that, as a leasing customer, it is particularly important to be aware of this legislation.

In connection with the reckless driving legislation, it is important to understand the difference between seizure and confiscation.

Seizure is a temporary taking of the vehicle. Confiscation is a permanent deprivation of the vehicle. Confiscation also means that the police may sell the vehicle at auction without the owner receiving the sale proceeds, regardless of whether the owner is a business, a private individual, or a leasing company.

It remains possible for a company car user to lend the vehicle to others, as before. However, it has become even more important to carefully consider who the vehicle is being lent to. This is because reckless driving can now have more significant financial consequences, in addition to the obvious and very serious risk of endangering the lives of others.

If a company car user is charged under the Danish reckless driving legislation, the provisions of the framework agreement between you, as the customer, and Ayvens apply. These provisions state that the vehicle must not be used for extreme purposes, including rally driving or racing. In addition, the lessee is responsible at all times for ensuring that the vehicle is used in accordance with its intended purpose and in compliance with applicable legislation.

If a user is charged with any of the offences described above, Ayvens will consider the underlying lease agreement to be in default. Consequently, the lease agreement for the vehicle in question may be terminated and settled in accordance with the provisions of the framework agreement.

In the event of default, Ayvens is entitled to claim compensation for any loss suffered, in accordance with the applicable principles of Danish law.

If a vehicle is seized and subsequently confiscated by the police before being sold at auction, Ayvens’ loss will be calculated and charged to the lessee.

The confiscation of a vehicle under the reckless driving legislation does not automatically result in the immediate termination of the framework agreement.

Under the framework agreement’s default provisions, the lessee is required to remedy any default situation as soon as Ayvens has notified them of it. Therefore, if a vehicle has been confiscated as a result of a charge under the reckless driving legislation, it is the lessee’s responsibility to ensure that similar incidents do not occur again.

In cases of repeated confiscations involving the lessee’s vehicles, Ayvens may, in accordance with the default provisions of the framework agreement, consider the framework agreement to be materially breached and may therefore terminate it.

Whether Ayvens exercises its rights under the default provisions will not depend on a specific number of confiscated vehicles. Instead, it will be based on a case-by-case assessment of whether the lessee has implemented adequate internal controls and procedures to ensure that the risk of similar incidents has been reduced to an acceptable level.

We recommend that you, as a customer, specifically assess the risk that employees and members of their households may violate the applicable provisions of the law.

When carrying out this assessment, a number of factors may be taken into consideration, including the demographic profile of employees, the type and size of the vehicle fleet, driving patterns, and similar considerations.

Based on this assessment, you can determine whether limits and control measures should be incorporated into your company car policy. Examples of such measures include:

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  Restrictions on horsepower (HP)/kWh and performance levels permitted for all employees
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  Performance restrictions for a specific age group
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  Separate internal approval requirements for certain vehicle types
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  Rules regarding lending company cars
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  Mandatory "speed awareness" courses for employees
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  Requirements for providing proof of a valid driver's licence
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  Requirements for documentation of any previous driving offences/violations

We recommend that you, as a customer and employer, include appropriate provisions in your employee handbook, the employee’s employment contract, or an addendum to the employment contract. These provisions should clarify that the employee is liable for damages in the event that the police confiscate a vehicle and that the employee acknowledges in writing the financial consequences arising from such confiscation. These provisions may also be incorporated as an addendum to your company car policy.

Furthermore, Ayvens recommends that employees remain liable where they have lent the vehicle to another person who causes the confiscation. Lack of knowledge of the law does not exempt the employee from responsibility.