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I know I've entered this discussion a bit late but...
...can someone define "elderly" please?
Much has been said, and written, about driving in relation to age and there are no definate answers as far as I'm aware. Statistically a driver under the age of 25 is far more likely to have an accident than one over the age of 50. You only have to look at insurance premiums to see that and it is rare that insurance companies get this sort of risk assessment wrong! They also differentiate between male and female drivers - but I'll not get drawn into any arguments over that particular subject.
The driving test does need looking at and, more importantly perhaps, driver training. Learner drivers are taught to pass the test - they are not taught to drive! If they were taught comprehensively then they would learn to drive on motorways, in adverse weather and at night. Most driving instructors are more than willing to teach these extra skills after the new driver has passed their test - but the majority of new drivers can't be bothered and it is left to the new driver to gain these skills only through experience. This "experience" is often gained the hard way, by getting it wrong and ending up in a ditch (if you're lucky) or in hospital (if you're less fortunate).
I was recently given the opportunity to attend, as an observer, a police-run Bike Safe course which was very enlightening. At one time these courses were open to any motorcyclist of any age but in recent years the police have specifically targetted the 30 to 50 age group. When I asked why this was I was told that those under 30 don't think they have anything to learn and have probably had better training anyway. It's a lot harder, and takes longer, to get a full motorcycle licence than it does to get a full car licence. It is also a lot harder to persuade someone under 30 that they could benefit from additional training - something that I have first hand experience of trying to do, and try and break the image of IAM drivers and riders as a bunch of cloth cap, pipe smoking and slipper-wearing old fogies!
Testing, and re-testing for that mattter, without proper training will only prove one thing - that a driver is compentent to complete the test on the day that they take it. Much like the MOT only proves that a vehicle is roadworthy on the day it's taken to the garage.