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
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.
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
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.
• 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: firstname.lastname@example.org