9 November 2010

Proposed changes to motor insurance law

The Continuous Insurance Enforcement (CIE) regulations were laid before Parliament in October 2010, introducing an offence to be the registered keeper of a vehicle which may not be covered by insurance following a check against the MID, even if the vehicle is not driven on the road.

Following comparison of the MID and 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 record
  • declare vehicle SORN (statutory off road notice)
  • buy insurance.

Enforcement will only follow if the keeper fails to comply with one of the above and will result 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 MIB, DVLA, ABI and BIBA to resolve a number of issues for Fleet and Motor Trade clients and we will keep you up to date with future developments, including a detailed CIE process when regulation has been passed by Parliament.

Key points for you to consider:

  • Please ensure your motor insurance clients are aware of CIE and understand their 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 policy and vehicle data in order that your clients will be on the MID
  • Registered keepers can check if their vehicle appears on the MID using www.askMID.com.

For more information, visit www.direct.gov.uk.

1 Reader Comment

  • 1
    Bernie Jacobson Australia. December 22, 2010 at 15:46
    How does this ruling affect the provision for enthusiasts visiting the UK and Europe with their Vintage/Classic car to take part in Rallies and other events?

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