Mercedes-Benz made the bold move to become the first automobile manufacturer to offer its Driving driveran SAE Level 3 system for conditional automated driving in the United States.
The most exciting aspect of the decision is that Mercedes-Benz takes responsibility for any accidents or incidents that occur while the autonomous system is active. This approach addresses a major concern, since liability has been presented as one of the main obstacles to deploying autonomous driving capabilities among the general population.
What is a level 3 autonomous car?
Self-driving cars are classified into six steps (Level 0 to Level 5):
- HAS levels 0-1The driver is primarily responsible for managing all driving operations and tasks.
- Level 2 involves assisted driving supported by partial automation, but the driver must monitor the system constantly.
- Level 3 introduces conditional automation, allowing the human driver not to constantly monitor the vehicle but must be ready to take back control.
- HAS level 4, the car drives on its own without human intervention. However, the system still cannot fully make decisions.
- Level 5 means fully autonomous driving, moving from human intervention to passenger status without any driving responsibility.
Mercedes-Benz's decision to sell Level 3 autonomous driving technology demonstrates strong confidence in the safety and reliability of the company's Drive Pilot technology. This could signal positively to other automakers that liability may no longer be the biggest barrier to widespread adoption of autonomous vehicles.
Tesla Level 3 vehicles, with a lower level of autonomy, hold the driver legally responsible for monitoring the autonomous system and providing support when needed. Tesla ensures that every time the driver activates the Autopilot system, there is always a visual reminder that the driver must keep hands on the wheel.
With Mercedes-Benz's Level 3 system, the driver can legally disengage and perform non-driving tasks, thereby shifting full responsibility to the automaker.
Mercedes-Benz has received the certificate from states like California and Nevada. Certification means that the Drive Pilot system meets the safety requirements set by those states.
It is still too early to absolve drivers of all responsibility:
Drivers can't use the Drive Pilot at all times. Use of the Drive Pilot is limited to approved roads or specific highways with speeds below 40 mph (or no more than 60 km/h) and only during daylight hours.
THE Mercedes-Benz Level 3 Vehicles incorporate reliable hardware that includes driver-facing cameras, as well as a light detection and ranging (LiDAR) system designed to minimize the risk of collision. If a driver engages in activities such as using a cell phone, dozes off, rolls over, or leaves the driver's seat, the system will alert them to deactivate Drive Pilot and resume manual control. Therefore, this will prevent the driver from engaging in additional activities other than driving.
The availability of such technology may suggest that determining the subject matter of tort liability could be accomplished by collecting internal data from the vehicle's recording and monitoring system.
In the event of an accident, it would be possible to demonstrate only the existence of illegal driving conditions of the vehicle without directly implying driver error. On the other hand, the driver must demonstrate non-negligence while driving, proving full compliance with his duty of care to avoid liability for manufacturing defects or accidents resulting from autonomous driving behavior.
Legal and regulatory considerations for autonomous vehicles:
Currently, the transition to Level 3 autonomy means that insurance companies now have to deal with complex legal and regulatory factors, particularly around liability. The problem is that in some cases the regulatory accountability landscape needs to be properly framed and in others it is completely absent.
Europe
In some European countries, the role of autonomous vehicles in our society is increasingly recognized. This has led to the establishment of legal frameworks to address liability concerns and the establishment of specific but unclear guidelines for autonomous driving.
UNITED KINGDOM
In the United Kingdom, the Automated and Electric Vehicles Act 2018 defines a vehicle as “drive itself” if it operates in a mode that is not controlled or monitored by a human (Law Commission, 2018, p. 8). By definition, this can only apply to level 5 autonomy.
France
France is the only country to have already defined rules and responsibilities for Level 3 and Level 5 autonomous vehicles since 2021. The most recent update (as of July 2021) clarifies the roles and responsibilities of the driver and the automated vehicle. This includes the level of attention expected from the driver when the autonomous driving system is activated.
Germany
German Autonomous Driving Act, effective July 28, 2021, allows the operation of motor vehicles with autonomous driving functions in designated operating areas on public roads. These features enable vehicles to perform driving tasks independently, meeting the Society of Automotive Engineers (SAE) Level 4 driving automation standards.
A technical supervisor is always required to control vehicle maneuvers externally. The law requires owners of vehicles equipped with autonomous driving capabilities to take out additional liability insurance for the technical supervisor.
WE
In the USA, during the first half of 2023, only nine states, including California and Nevada, have taken the initiative to develop autonomous vehicle laws within their borders. Many states have adopted or considered legislation to improve opportunities for the use and development of autonomous vehicles.
The National Highway Traffic Safety Administration (NHTSA) has so far changed its reporting requirements for autonomous vehicle crashes in the United States. When it comes to liability, the levels of responsibility remain unclear.
What could be next from an insurer’s perspective?
Legal experts caution that the liability landscape surrounding autonomous vehicles is still unclear. Regulations and laws have yet to fully catch up with the capabilities of new levels of vehicle autonomy on the roads.
The important question today is determining liability in the event of an accident. Determining autonomy shortcomings requires a thorough understanding of the technology, its limitations, and potential malfunctions, which have yet to be fully understood.
Meanwhile, insurance companies could engage in complex legal battles to determine liability, which will influence the design of new insurance policies. This is why liability should be interpreted differently, affecting the auto insurance industry as a whole.
As a path to full autonomy still stay far away, insurers and car manufacturers must work closely together to improve liability in the event of an accident. As self-driving cars become more common, the insurance industry must adapt its business models and product portfolios to stay relevant.
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