Minibus Insurance - EU Motor Insurance Directive
The 4th EU Motor Directive, implemented in January 2003, required the United Kingdom to create an information centre to facilitate easy identification of the valid insurer of any vehicle registered in the UK. Thus the Motor Insurers’ Information Centre (MIIC) was formed, as a division of the Motor Insurers’ Bureau. All other member states of the EU have had to establish and maintain a similar register .
Tight access controls to the information are in place, with the three main users being the police, DVLA and insurers themselves. The new internet-based vehicle excise duty payment system introduced recently by DVLA uses MID to check that insurance is in force when issuing a vehicle licence. The police can access the database from the roadside to check for valid insurance, and the growing network of Automatic Number Plate Recognition cameras is also linked to a hot-list of vehicles that have apparently become uninsured (information supplied by MID). Users have made approximately 27,000,000 enquiries over the past 12 months!
If the system is to be worthwhile and effective, accurate and prompt updates to the database are essential. Insurers currently have a deadline to pass such information to the MID within fourteen days, but this will reduce to seven at the beginning of 2008. They therefore rely on policyholders and their brokers to give immediate advices in the event of vehicle changes; this also means that the ‘days of grace’ hitherto given can no longer apply. Renewal instructions have to be confirmed, at the latest, on the day before renewal if continuous cover is to be maintained.
Giving correct and timely information is not optional; failure to do so can result in a fine of £5,000. MIB/MIIC, the Crown Prosecution Service (CPS) and the Department for Transport (DfT) are focussing on and working towards identifying those organisations and individuals who are not complying with the legislation, in order to bring about successful prosecutions.
All in all, this initiative should help significantly to reduce uninsured driving, identify unlicensed vehicles, help in the fight against vehicle theft and help identify drivers who are involved in accidents abroad in any EU country. Let us all help to make it work!
Tight access controls to the information are in place, with the three main users being the police, DVLA and insurers themselves. The new internet-based vehicle excise duty payment system introduced recently by DVLA uses MID to check that insurance is in force when issuing a vehicle licence. The police can access the database from the roadside to check for valid insurance, and the growing network of Automatic Number Plate Recognition cameras is also linked to a hot-list of vehicles that have apparently become uninsured (information supplied by MID). Users have made approximately 27,000,000 enquiries over the past 12 months!
If the system is to be worthwhile and effective, accurate and prompt updates to the database are essential. Insurers currently have a deadline to pass such information to the MID within fourteen days, but this will reduce to seven at the beginning of 2008. They therefore rely on policyholders and their brokers to give immediate advices in the event of vehicle changes; this also means that the ‘days of grace’ hitherto given can no longer apply. Renewal instructions have to be confirmed, at the latest, on the day before renewal if continuous cover is to be maintained.
Giving correct and timely information is not optional; failure to do so can result in a fine of £5,000. MIB/MIIC, the Crown Prosecution Service (CPS) and the Department for Transport (DfT) are focussing on and working towards identifying those organisations and individuals who are not complying with the legislation, in order to bring about successful prosecutions.
All in all, this initiative should help significantly to reduce uninsured driving, identify unlicensed vehicles, help in the fight against vehicle theft and help identify drivers who are involved in accidents abroad in any EU country. Let us all help to make it work!
posted by BJK Insurance Brokers Ltd at 10:44 am
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