Early in 2011 a new scheme is being introduced to help tackle uninsured drivers in the UK. It is hoped the scheme will help reduce the £380 million each year that the DVLA estimate uninsured drivers cost other motorists.
The scheme will aim to ensure that all uninsured vehicles are issued with a Statutory Off Road Notification (SORN) or their vehicles insurance is renewed. The Driver and Vehicle Licensing Agency (DVLA) and the Motor Insurers’ Bureau (MIB) work together to reduce the number of uninsured drivers.
The most recent figures estimate that around 1.5 million of all UK motorists drive uninsured. These drivers cost insured UK motorists on average around £30 on their motor insurance policy. When the new law comes into force in the new year, records held by DVLA will be compared with those on the Motor Insurance Database (MID).
If it appears from the database comparison that a vehicle has no insurance or no SORN, a letter will be sent to the registered keeper. If the keeper takes no action, the keeper faces; a fixed penalty fine of £100, potential court prosecution and a fine of up to £1,000 or having their vehicle clamped, seized and destroyed. The police already seize about 500 uninsured vehicles every day.
The damage caused in road traffic accidents by uninsured drivers results in large numbers of claims for settlement by the Motor Insurers Bureau (MIB). Research and surveys also show that uninsured drivers are more likely to be involved in road traffic accidents, fail to follow road traffic signs and signals and potentially be involved in other criminal activity.
The legislation may be aimed at tackling uninsured drivers but it could have serious implications for motor traders during the course of running their business. Motor Traders with a high turn-over of vehicles are always hit hardest by any legislation tightening the requirements of the MIB and DVLA. If a motor trader is driving a vehicle that they very recently purchased they should have their motor trade insurance certificate close to hand. If a motor trader has a vehicle that is untaxed and not on the road they may now be chased to declare the vehicle SORN.
To help their motor trade insurance clients tackle the requirements of the MID Trade Plan Insurance have introduced two important new measures. Firstly, they have created an online MID submission form for motor trade insurance clients to submit MID updates via their website at any time. There is an online demonstration video to aid any motor trade clients that may struggle with the form. They will also imminently be launching their Micro Site to enable motor traders with smart phones to update their MID records whilst on the move.
Trade Plan Insurance is a trading name of The Plan Group Ltd and specialises in Motor Trade Insurance. The Plan Group Ltd has been in operation since 2001 and offers an extensive range of insurance products via specialist divisions Plan Insurance, Commercial Plan Insurance, Chauffeur Plan Insurance and Trade Plan Insurance.
*NB – since this post date we have undergone a re-brand to update our image. The various sub-brand departments that were within Plan Insurance such as Taxi Plan, Commercial Plan, Trade plan etc. were brought together under the one name of Plan Insurance Brokers in July 2015. Read more about our re-brand here.