Complete nonsense, although anyone wise might join BC or similar to be 3rd party covered. There is no legal requirement for insurance for cyclists, probably because it's unenforcable. Ask the council to quote the relevant section of the road traffic act to you. That'll keep the numpties busy for years. They'll be telling you that helmets are compulsory next. As a matter of interest, which council? name and shame!
LOL what the f***????They refuse to elaborate, so I cannot say where they got it from.
Do we have a mass demonstration of uninsured cycles using lanes & see what they do?