Motor Insurance Industry News

IMPORTANT - REGULATORY UPDATE: PROPOSED CHANGES TO MOTOR INSURANCE LAW - SPRING 2011

The Continuous Insurance Enforcement (CIE) regulations are due to be laid before Parliament, introducing an offence to be the registered keeper of a vehicle which may not be covered by insurance following a check against the Motor Insurance Database (MID), even if the vehicle is not driven on the road.

Following comparison of the Motor Insurance Database (MID), Driver and Vehicle Licensing Agency (DVLA) records, registered keepers suspected to be without insurance will receive a letter and given the following options:

• contact their insurance provider to ensure registration on the MID is accurate
  
• update their DVLA records
• declare vehicle SORN (statutory off road notice)
• buy insurance.

Enforcement will only follow if the keeper fails to comply with one of the above, resulting in:

• an initial fixed penalty fine of £100
• their vehicle being clamped, seized and disposed of
• possible court prosecution which carries a maximum fine of £1000.

Allianz is working with the Motor Insurers Bureau (MIB), DVLA, Association of British Insurers (ABI) and British Insurance Brokers Association (BIBA) to resolve a number of issues for Fleet and Motor Trade clients and we will post future developments, including a detailed CIE process when regulation has been passed by Parliament, on this website.

Please ensure you are aware of CIE and understand your legal requirements.

The DVLA has prepared this leaflet to promote the new law and additional information can be found at www.direct.gov.uk/stayinsured.

Please ensure that you provide timely and accurate vehicle data in order that vehicles match records held on the DVLA.

You can check if your vehicle appears on the MID using www.askMID.com