Sunday, 9 January 2011

Introduction to MID

Important New Motor Insurance Law

Continuous Insurance Enforcement (CIE) is a joint campaign being launched in early 2011 by both DVLA and the Motor Insurers Bureaux (MIB) as a result of a new insurance law to help combat uninsured driving in the UK.

Please visit our dedicated CIE information area to find out more about how this important change in the law may affect you, either as a policyholder or as a MID contact.

:: Continuous Insurance Enforcement (CIE)

The Motor Insurance Database

The UK has one of the worst records in Western Europe for uninsured driving with an estimated one in every twenty cars on the road being driven without proper insurance cover. The insurance industry makes up the loss, but the real victims are the honest motorists whose insurance premiums subsidise the cheats.

In 2000, the insurance industry set up the Motor Insurers Information Centre (the organisation that is now called the Motor Insurers Bureau) to develop and manage the Motor Insurance Database (MID) in order to combat this crime. Not only will the database help to reduce this crime, but it will also assist the UK in meeting the 4th EU Motor Insurance Directive.

The 4th EU Motor Insurance Directive, which came into effect on 20 January 2003, requires that details of every insured vehicle be accessible (by Vehicle Registration Number) by a national information centre in order to make it easier to pursue cross-border claims. In the UK, the Motor Insurers Bureau (MIB) will fulfil the role of the UK Information Centre.

Insurer and Policyholder Responsibilities

To comply with new legislation, the following actions are required:-

  • All insurers will provide policy information to the MID, effectively opening an account for the receipt of vehicle data.
  • Policyholders, including all motor fleet, self insured operators, self drive hire operators or motor trade policyholders will provide vehicle information to the MID.

The vehicle data to be supplied includes:

Mandatory

  • Vehicle registration number
  • Date on which cover begins for each vehicle
  • Date on which cover ceases for each vehicle

Optional

  • Vehicle make and model
  • Vehicle type (private car - goods carrying etc.)
  • Engine capacity or gross vehicle weight

The MIIC has advised that the optional data is supplied in case future enhancements are made to the legislation to render the database more useful.

NB. To ensure the database is up to date, any changes to your schedule, e.g. vehicles taken on or off cover, must be made to the MID promptly and no later than 14 days after the change.

How to supply the Vehicle Data - QBE Motor's Approach

Vehicle data will be supplied to the MID in one of two ways:

  1. Where there are one to nine individual vehicles within your Fleet and the details are recorded by our Underwriters

    QBE will provide the required information directly to the MID from our own system, or alternatively, you will be asked to Fax or E-mail the details direct to the QBE MID helpdesk. If this is the case then we will contact you to confirm this and explain the process.

    If this applies to you, it is imperative that change of vehicle instructions are provided to your broker/intermediary immediately to enable Underwriters to comply with the 14-day rule.
  2. Where there are 10 or more vehicles or the vehicle details are not recorded by Underwriters

    The policyholder will be responsible for providing at least the mandatory vehicle information direct to the MID via the Internet.

    If this applies to you, please note that there is no data collection service for the MID. In other words, submission may only be made via the Internet and we will provide you with the relevant login information to access the MID website.

Business as usual

Whichever of the above methods of populating the MID are utilised, this will not effect the way in which Underwriters currently process premium adjustments.

Individual vehicle details, whether adjusted on an as and when, or declaration (quarterly, half yearly etc.,) basis will still need to be provided to your broker/intermediary in the usual way to enable premium adjustments to be made.

Key Points

  • All insured vehicles registered in the UK must be held on the MID
  • Temporary vehicles held for 14 days or less do not need to be held on the MID
  • Failure to supply vehicle details may in certain circumstances lead to criminal prosecution and a fine of up to £5000

Further Information

Visit our Helpdesk page for information on how we can assit you with MID queries.




The detailed enforcement process is under discussion with the Government, and will not be finalised for some time. See press release No Place to hide for UK's uninsured drivers.
Continuous Insurance Enforcement (CIE)
The Road Safety Act became law in November 2006, and introduced a new offence which is aimed at overcoming the problem of vehicles not specifically covered by any insurance policy (even a blanket policy) being used by drivers who claim cover under their “driving other vehicles” extension. The requirement for insurance will apply to vehicles whether they are being driven or not.

The new approach will also have the added benefit that, like continuous vehicle registration, it can be enforced “from the record”, and vehicles need not be seen on the roads before action can be taken.

Once the necessary regulations are drawn up, it will be an offence to be the keeper of a vehicle which is not covered by a specified policy or by a blanket policy (“open cover contract”) covering vehicles owned by the policyholder or other party named in the policy. There will be specific exemptions, the main two of which will be that the vehicle has been statutorily declared off the road (SORNed) or a change of keeper is in the process of being completed by the DVLA.

The Act can be found at

http://www.uk-legislation.hmso.gov.uk/acts/acts2006/20060049.htm

Posted by Britannia Radio at 22:12