global insurance management

Continuous Insurance Enforcement

Dec 17 2010

Continuous Insurance Enforcement

Relevance: Firms offering motor insurance.

Action required: Check that you maintain systems for timely and accurate notification of client details for inclusion in the Motor Insurance Database (MID). Ensure relevant staff are aware of upcoming changes.

From early 2011, new regulations will come into force aimed at reducing the number of uninsured vehicles and their drivers. It is Continuous Insurance Enforcement (CIE).

It has been a long time in the making, starting with the Greenaway Report in 2004, the Road Safety Act in 2006 and consultation by the Department of Transport in Q1/2009. The result is a change in requirements for insurance of motor vehicles.

At the moment it is an offence to drive a vehicle on the road without proper insurance. The forthcoming change will require the registered keeper of any vehicle either to have insurance or to register a SORN (Statutory Off Road Notification).

The aim of CIE is to identify those vehicles that appear to be kept uninsured by comparing the DVLA’s vehicles register with the motor insurance industry database (MID) managed by the Motor Insurers Bureau (MIB).

• The registered keeper of any vehicle identified as potentially uninsured will be sent a letter warning them that the vehicle of which they are the registered keeper appears to be uninsured and advising them to take action to correct the situation.

• A further comparison of the two databases will show whether a keeper has taken action. If not, enforcement action will be taken.

• The keeper will be sent a fixed penalty notice and fine of £100. Also at this point the vehicle becomes liable to be wheelclamped, impounded or disposed of. If the keeper does not pay the fixed penalty fine DVLA may bring court proceedings against the keeper who may be liable for a court fine up to £1,000.

Anyone can check their own record on the MID by going to

Providing that you ensure that the MID is kept up to date then no further action is needed. However, we are aware that CIE has received some press coverage, and will be subject to a publicity campaign in the New Year, we thought it worthwhile to provide this update which should be forwarded to relevant staff.

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