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QBE - MIB Motor Trade


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									Motor Trade and the MID

 Don’t let the criminals escape
                                                                                                                                                        Motor Trade and the MID

Why updating the MID can                 and are then removed when they go          From 2011 a new law gives the Driver                         Alternatively, if you have direct access
                                         off cover, you are helping the police to   and Vehicle Licensing Agency (DVLA)                          to the MID via MIDUpdate, you could
save you money
                                         concentrate on those vehicles that are     more power to penalise the registered                        send the records directly.
                                         actually uninsured. You may also save      keepers of vehicles that are not
Uninsured drivers currently cost UK                                                                                                              Further information regarding CIE can
                                         your drivers the inconvenience and         insured. As part of this Continuous
motorists over £500 million per year.                                                                                                            be found on the Department for
                                         potential embarrassment of being           Insurance Enforcement (CIE) policy the
That means every time you pay your                                                                                                               Transport (DfT) website
                                         stopped by the police, as well as the      DVLA will compare its records with
insurance premium a portion of this                                                                                                              www.direct.gov.uk under the heading
                                         costs associated with recovering           details of all the vehicles currently on
amount goes to pay for these illegal                                                                                                             ‘stay insured’.
                                         vehicles that have been seized.            cover that are held on the MID.
road users. To tackle this problem the
insurance industry assigned                                                         If a vehicle does not have insurance                         In addition to using the MID as a tool
                                         Information on potentially uninsured
responsibility for the development and                                              cover, and has not had a Statutory Off                       to fight uninsured driving, it is also
                                         vehicles, which includes motor trade
operation of the Motor Insurance                                                    Road Notification (SORN) declared, the                       used to support the 4th EU Motor
                                         vehicles that have not been added to
Database (MID) to the Motor Insurers’                                               registered keeper could face:                                Insurance Directive (now incorporated
                                         the MID but should have been, is
Bureau (MIB).                                                                                                                                    in the codified Directive 2009/103/EC).
                                         provided regularly to the police to feed
                                         into their Automatic Number Plate          • a fixed penalty notice of £100                             This requires that insurers are readily
The police make approximately 2                                                     • their vehicle being clamped, seized                        identifiable using only the registration
                                         Recognition (ANPR) network. When a
million enquiries per month on the MID                                                and disposed of                                            number, which makes the management
                                         potentially uninsured vehicle passes an
to check if vehicles have insurance,                                                • a court prosecution with a maximum                         of claims involving drivers from
                                         ANPR camera the police are alerted
and as a result of this seized nearly                                                 fine of £1,000                                             different countries more effective. The
                                         and the driver may be stopped. If the
180,000 uninsured vehicles in 2009.                                                                                                              directive covers all vehicles, including
                                         vehicle and policy details are not up to
By making sure your motor trade                                                     These new measures are in addition to                        fleet and motor trade vehicles. The UK
                                         date, it could be seized.
vehicles are correctly added to the                                                 the powers the police already have to                        Regulations passed in 20031 place a
MID when they come on cover,                                                        seize an uninsured vehicle and fine the                      legal obligation on you, the
                                                                                    driver.                                                      policyholder, to supply all vehicle
                                                                                                                                                 information to your insurer, although
                                                                                    You are advised to check that the
                                                                                                                                                 some insurers ask their policyholders
                                                                                    records of your vehicles held on the
                                                                                                                                                 to supply to the MID directly. All
                                                                                    MID are up to date using the free
                                                                                                                                                 vehicle records must be kept for seven
                                                                                    service at www.askMID.com. If, having
                                                                                                                                                 years2. Non-compliance with the
                                                                                    done so, you find that the records are
                                                                                                                                                 Regulations is a criminal offence, and
                                                                                    not correct you should contact your
                                                                                                                                                 the maximum fine for not submitting
                                                                                    broker or insurer immediately.
                                                                                                                                                 data is £5,000.

                                                                                        Motor Vehicles (Compulsory Insurance) (Information Centre and Compensation Body) Regulations 2003
                                                                                        More information on the detailed requirements can be found on the MIB website http://www.mib.org.uk
                                                                                                                                                         Motor Trade and the MID

How do you supply your                                       Which vehicles should be                    What information do you                    In addition to being a legal
                                                                                                                                                    requirement, most insurers have made
vehicle records?                                             added?                                      need to provide?
                                                                                                                                                    the notification of vehicle information a
                                                                                                         The information that you are legally       condition of their insurance policies.
There are two high level options                             All vehicles insured on your motor
                                                                                                         obliged to provide for each vehicle is     This means that if one of your motor
available for submitting data to the                         trade policy and all trade plates owned
                                                                                                         as follows:                                trade vehicles is involved in an
MID. You will be asked to either supply                      by you should be added to the MID,
                                                                                                                                                    accident and it does not appear on the
the information to your insurance                            including:
                                                                                                         • Policy number                            MID there may be a delay in settling
provider, OR you may be asked to
                                                                                                         • Vehicle Registration Mark (Please        the claim while this is investigated.
update the MID directly using a                              • All permanent vehicles (i.e. vehicles
                                                                                                           ensure the VRM is accurate as this
centralised web service (MIDUpdate)3.                          registered to, owned by, or leased
When you arrange your insurance with                           to you) and any vehicles whose use
                                                                                                           is used for police search purposes       What happens at renewal
                                                                                                           and by the DVLA for Continuous           time?
your insurer/broker, make sure they                            is regularly covered by the policy
                                                                                                           Insurance Enforcement)
advise you on how to provide your                              (e.g. employees’ vehicles)
                                                                                                         • The date on which the vehicle was        If you stay with the same insurer you
vehicle information; you must be                             • Temporary vehicles such as
                                                                                                           first insured on the policy (probably    should check whether you have to
ready to do so as soon as the policy                           courtesy or short term hire vehicles
                                                                                                           either the start date of the policy or   update your vehicles yourself to make
is in place.
                                                                                                           the date the vehicle was acquired, if    sure they appear on the MID for the
                                                             The MIB recommendation is that all
                                                                                                           later)                                   new policy period or whether this will
When should this be done?                                    vehicle records that have road cover
                                                                                                         • The date on which the vehicle            happen automatically. If you change
                                                             included are sent to the MID regardless
                                                                                                           ceased to be covered on the policy       insurer at renewal time then you must
Whether you are supplying vehicle                            of the period of cover in order to
                                                                                                           (which might be the day on which         provide the details of all your vehicles
updates to your provider or adding the                       minimise the risk of being stopped by
                                                                                                           the vehicle was sold, or the date        again - your new insurer may request
details directly to the MID yourself, the                    the police and a possible vehicle
                                                                                                           declared under a SORN to the             that you supply the details to them or
regulations state that the data must be                      seizure.
                                                                                                           DVLA)                                    add them to the MID directly yourself.
supplied ‘immediately’. It should
therefore be done as soon as possible,                       Untaxed stock vehicles (i.e. driven on      MIB encourages policyholders to            Failure to carry out these actions
preferably on the same day, to ensure                        trade plates) need not be notified,         provide, wherever possible, the            means that the vehicle details will not
maximum benefit. The DfT regularly                           although if it is easier simply to notify   optional vehicle data such as vehicle      appear on the MID after the renewal
monitors the time taken to supply                            every vehicle, this is acceptable – in      type, make and model. This will help       date of your policy and as such your
information to the MID against a set of                      fact this is MIB’s preferred approach.      the police with more accurate vehicle      vehicles may suddenly appear to be
targets to ensure the system is                                                                          identification at the roadside.            uninsured. This may cause problems
effective as an enforcement tool.                                                                                                                   with Continuous Insurance
                                                                                                                                                    Enforcement as noted above, and in
                                                                                                                                                    the event of a roadside stop by the
                                                                                                                                                    police the vehicle may be seized.
    For further details about MIDUpdate, please visit www.midupdate.com 'Overview'
                                                                                            Motor Trade and the MID

Removing vehicles                           Correcting vehicle                         Where can I get help?
When you sell any vehicles, or return                                                  Your initial point of contact for
temporary vehicles, you must                The accuracy of the vehicle information    enquiries and/or assistance should
remember to update the MID or inform        you provide is vital, and especially the   always be your insurance provider.
your insurer/broker to take them off        Vehicle Registration Mark (VRM). If you    Make sure you are aware of the correct
cover as soon as possible.                  realise that some of your vehicle          contact details. General information
                                            details are wrong, you need to correct     can be found at the MIB website
If you don’t update the MID or inform       them as soon as possible, preferably       www.mib.org.uk.
your provider regarding vehicles that       the same day. If you are unsure how
you no longer own, you may be               to do this, contact your insurance
contacted about insurance claims that       provider to determine whether you are
have nothing to do with you. Failing to     able to make the correction yourself.
provide updates may also help
uninsured drivers evade detection as        If you have lost track of what vehicle
the vehicle will be incorrectly linked to   information is on the MID you can get
your insurance policy and they may not      a record of this. Please ask your
be stopped by the police when they          insurer/broker how this is done.
should be.
                                                                           Motor Trade and the MID

 Summary of what you need to do
                                               If you are not already aware, contact your insurer or
                                               broker to find out how and when you should add
                                               your vehicle information. There are several ways
 Getting started
                                               that you can notify your vehicle details, and different
                                               insurers will offer different options. Then submit your
                                               initial list of vehicles.

                                               Update your vehicle details whenever there is a
                                               change to any vehicles covered by your policy, e.g.
 Ongoing                                       when a licensed vehicle comes into stock, enter it
                                               onto the MID. When a licensed vehicle leaves stock,
                                               remove it from the MID.

                                               Updating your vehicle details regularly should be a
                                               standard practice within your business. More than
 Continue to meet your legal
                                               one person should be aware of the process, and
                                               training should be given to new staff to ensure that
                                               your company retains this knowledge.

 Key messages
 • Ensure you know the contact details for your insurer/broker
 • Data quality is important - make sure information is up to date and accurate

             Defeating uninsured drivers will help limit the cost of your insurance
                                 and make our roads safer

For further information, please contact
Motor Insurers’ Bureau, Linford Wood House, 6-12 Capital Drive, Milton Keynes MK14 6XT
Tel: 01908 830001 Email: enquiries@mib.org.uk
www.mib.org.uk                                                                               MIB-MTL0111

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