MID - Questions and Answers
From January 2008 the requirements for submitting data to the Motor Insurance Database (MID) have tightened in an effort to improve the fight against uninsured driving. The new requirements reduce the time we have to supply data to the MID and therefore increased the risk of fines being imposed on us or ultimately the loss of our authority to trade motor insurance
- What is the MID?
- Please can you change the last sentence to The MID also help the UK comply with 4th EU Motor Directive, which requires that insurance details of all vehicles in member states can be easily accessed by a national information centre.
- How can the MID assist in the fight against uninsured driving?
- Please can you change last sentence to During 2009 we anticipate the DVLA introducing automatic fines for registered vehicles without a MID record, through continuous insurance enforcement.
- Who else uses the MID?
- In addition to providing insurance indicators to the police force and the Department for Transport the MID is used for:
- Identification of insurers responsible for claims - UK Insurers, Solicitors, Independent Claims Handlers and European Union Insurance representatives
- To purchase road tax online- DVLA, Private individuals.
- Who is responsible for populating the MID?
- All Motor Insurers, some brokers/intermediaries and Commercial Fleet operators submit data to the MID. Risk information, such as vehicle and driver details, is submitted for New Business, Cancellation and Amendment transactions.
- What are the MID reporting requirements?
- From January 2008, the requirement is that 95% of transactions must be submitted within 7 days from their effective date (referred to as MID7). If this requirement is not met we can initially receive a fine from the Motor Insurance Bureau. If compliance is not achieved after receiving a fine we may lose our licence to trade motor insurance.
- What are our plans to achieve MID?
- EDI policies will automatically lapse 1 day after renewal date if renewal acceptance has not been received. Our Operations department are currently reviewing our operational processes for non EDI service levels, corporate transactions and EDI errors. We continue to review our IT processes and efficiencies to remove system delays. The AP cover note book now includes reference to the MID and the need to submit transactions to us immediately.
- How can I help?
- To enable us to meet our obligations to the Motor Insurance
Database you are required to do the following:
The cover note and where applicable the Certificate of
Motor Insurance must be submitted to us immediately when
an adjustment takes place, or when a renewal invitation is
declined, and in any event no later than the date of renewal.
The cover note must be issued in line with the instructions
on the cover note book. Any other documentation to support
the transaction such as evidence of No Claims Discount,
application forms and so on must be sent immediately upon
receipt and no later than 5 days following the effective date of
the transaction.
EDI transactions should be sent daily.
Remember, uninsured driving affects us all whether it is through the cost of our insurance premiums, if we are involved in an accident with an uninsured driver, the fine that can be imposed on us as a company or the ultimate sanction of the removal of our licence to trade motor insurance. Your efforts to improve and maintain MID time to supply have a direct impact on the fight against uninsured driving and the avoidance of sanctions against Allianz.
If you want to know more about the MID, please visit the Motor Insurers' Bureau (MIB) website www.mib.org.uk.