Business vehicle owners advised to check vehicles registered as insured or face fines and vehicle seizure

A new government scheme, that became effective from January 2011, plans to crack down further on those who fail to insure their vehicles. Continuous Insurance Enforcement (CIE) gives the DVLA even more power to track down and punish owners of uninsured vehicles.

The DVLA already has the ability to compare their records with the Motor Insurance database (MID) to pinpoint vehicle owners suspected of failing to insure. It hoped that enforcement of the new CIE scheme will result in the uninsured owner paying a fixed penalty fine of £100, having their vehicle clamped, seized and destroyed; or facing a court prosecution, with a maximum fine of £1,000.

The police will be stopping any vehicle not on the MID register. There could, therefore, be an added sting in the tail for the insured driver, particularly the busy business driver who potentially faces the inconvenience and embarrassment of being stopped, as well as any costs associated with recovering seized vehicles, if their vehicle is insured but not listed as registered on the MID register.

We are advising that even vehicle owners with appropriate insurance check to make sure their vehicle(s) is recorded as ‘insured’ on the MID by visiting www.askmid.com/. Owners of vehicles not registered on the MID should contact their insurer/broker and ask them to update your details. Fleet and motor-trade policy holders are responsible for updating their own vehicle details using MID direct web service at www.midupdate.com/.

According to www.direct.gov.uk/stayinsured, it is estimated that uninsured drivers cost UK motorists over £500m per year, which is around £30 of the cost of each insurance premium. For the insured majority, especially businesses that rely on vehicle fleets, it is a frustrating and troubling reality.”