Extensive safety assurance for automated driving functions is a prerequisite to allow automated vehicles on the road. However, test drives with failure scenarios must ensure safety of the tests and test personal involved. In this paper, a novel validation environment on a steerable VEhicle-in-the-Loop (VEL) test bench is developed. Previous vehicle test benches usually only offer the possibility to represent load profiles in longitudinal direction. On the VEL test bench, the aligning torque is also simulated, so that the steering system of vehicles can also be loaded correctly, and simulated vehicle behaviors are more realistic. In addition, an environment simulation module provides sensor signals like Lidar and Camera to the vehicle control unit. This allows the testing of high-level algorithms like trajectory planning or track control on the test bench. One scenario with degraded vehicle steering motor has been carried out in this validation environment to demonstrate its application.