DVLA reduces endorsement notification period to one month

Recent changes by DVLA are putting companies who provide company cars and employees who are paid business mileage at risk of having invalid insurance policies.

In the past, following a fixed penalty fine, drivers enjoyed a period of up to 12 months to submit their paper driving licence to DVLA to have the points added before it was revoked.

In November 2010 however, this period of grace was reduced to one month. This change now presents a huge headache to employers whose employees use company or personal vehicles on company business.

Should the employee fail to submit their licence within the one month period, their licence is immediately revoked and they will be driving without a licence and therefore without insurance. For employers who provide company cars the validity of their fleet insurance policy may be affected as well as their right to make a claim.

It is also an offence to permit someone to drive a vehicle when they do not have a licence, therefore employers may also find themselves guilty of an offence for not having the appropriate policies and checks in place to identify and prevent this from occurring!

Additionally, the employer may be at further risk from third parties who may subsequently hold the company liable for any accidents, damages and personal injury claims caused by their employee as a result of their failure to have adequate policies and procedures in place to prevent employees from driving without a licence!

We are advising all our clients to update their contracts of employment and immediately carry out a full review of driving licence and insurance documents. We also recommend employers regularly remind staff of their obligation to immediately inform them of any new motoring convictions.