Continuous Insurance Enforcement (CIE) Frequently Asked Questions

Transcription

1 Continuous Insurance Enforcement (CIE) Frequently Asked Questions This document is aimed at providing further clarity on the CIE process for the insurance industry and contains questions (and answers) raised at the CIE Industry Event in March 2010 as well as those submitted individually to MIB. It is not an exhaustive list and will be updated regularly to take into account any progress and development in the scheme. Questions: 1. What exactly is CIE? 2. Is CIE part of the Road Safety Act? 3. Why do other Western European countries have better levels of motor insurance cover than the UK? 4. What education will there be for the public and police to understand what to do when there is a delay on the MID being updated e.g. when there has been a change of ownership? 5. Will it be possible for insurance companies to view Vehicle Registration Marks before the IALs are sent out (so that their records can be checked to prevent unnecessary letters being issued)? 6. Will MIB be keeping the insurance industry up to date on how CIE works, and what processes or procedures may need to be addressed? 7. Have discussions been held with the commercial industries such as fleet, lease and rental operators and how their processes would impact upon or be affected by CIE? 8. What issues are there over accuracy of data on MID and is there any move to increase the mandatory fields as this could impact on IT resource? 9. When will vehicle verification for make and model be available on the MID update? 10. What is being done to tackle the level of miskeyed data as research shows that 90% of problems are caused by online insurance applications? 11. What does the term persisitent no record of insurance mean? 12. How will persistent offenders be treated, as a person may keep changing their vehicle but pay the Fixed Penalty Notice (FPN)?

2 13. Will motor trade vehicles become eligible for an IAL and who will the DVLA identify as the registered keeper? 14. Will fleet vehicles registered as part of DVLA s fleet scheme be eligible for an IAL? 15. Are there any vehicles that are exempt from CIE? 16. Are vehicles in trade exempt from CIE, if so how will they be identified? 17. Will the maximum court prosecution fine of 1,000 be sufficient? 18. Is any pressure being put on the judiciary to increase fines to the maximum amount possible? 19. Will CIE be an effective measure amongst young male drivers who may find it cheaper to pay the Fixed Penalty Notice (FPN) than pay for insurance? Do we need other means? 20. Will the Highway Code and Driving Test be amended to reflect changed insurance responsibilities, along with the consequences and penalties e.g. in the Theory Test? 21. Is it possible for MIB to name and shame offenders?

3 CIE Frequently Asked Questions 1. What exactly is CIE? CIE is a new, and additional, compliance and enforcement approach to reducing the level of uninsured driving. At present it is an offence to use a vehicle without insurance but, from 2011, it will also be an offence to keep a vehicle without appropriate motor insurance. Under CIE the registered keeper of a vehicle(s) will be sent a letter (Insurance Advisorory Letter) if it appears they have no insurance. The letter will set out what options the registered keeper can take to comply with CIE. If the registered keeper does not comply their details will automatically fall to the DVLA for enforcement action. 2. Is CIE part of the Road Safety Act? Yes. The Road Safety Act 2006 section 22 sets out the primary powers for the additional offence of being the keeper of a vehicle, either privately owned or part of a company fleet, which does not meet minimum insurance requirements. 3. Why do other Western European countries have better levels of motor insurance cover than the UK? There are several reasons for this, ranging from cultural differences and attitudes towards breaking the law, to the way vehicle registration systems operate. For example in Germany the registration system is based on number plates being directly allocated to individuals - this results in as little as 0.1% being uninsured. A common factor in countries with low levels of motor insurance evasion is rigorous enforcement from the record, which is fundamentally how CIE will work in the UK.

4 4. What education will there be for the public and police to understand what to do when there is a delay on the MID being updated e.g. when there has been a change of ownership? There will be publicity to help people understand the new scheme and the need to check askmid.com Every opportunity will be taken to remove any vehicle that is insured from the Insurance Advisory Letter* (IAL) candidate pool and, at the end of each stage, a final check will be done to make sure the vehicle has not got insurance. The IAL will advise registered keepers, who believe their vehicle is insured, to check with their insurance provider that their vehicle details appears on the MID and to check this themselves at It is important for all insurance providers to load accurate information onto the MID, in good time. The aim is to ensure that MID data is as accurate and up to date as possible, and MIB is looking at ways of speeding up processes in the future. As for Police on the road enforcement - there is the MIB Police Helpline** to assist with this type of MID enquiry. Both DVLA and MIB are talking to the Police at the appropriate levels, to ensure the CIE process, and its relationship to roadside operations, is understood. *An Insurance Advisory Letter (IAL) is what MIB will send to the registered keeper of vehicles that appear on the DVLA database but not on the MID and are therefore

5 potentially uninsured. The letter will give advice on what to do to comply with CIE and avoid enforcement action. **The Police Helpline is a dedicated telephone call centre service run by MIB that can assist the police, often from the roadside, in checking whether a motorist is driving with valid insurance. 5. Will it be possible for insurance companies to view Vehicle Registration Marks before the IALs are sent out (so that their records can be checked to prevent unnecessary letters being issued)? No, this could infringe Data Protection laws. However every opportunity will be taken to remove any vehicle that is insured from the IAL candidate pool and, at the end of each stage, a final check will be done to make sure the vehicle has not got insurance. Insurance providers can help prevent IALs being sent in error by ensuring that the data they supply to the MID is both timely and accurate. The IAL will direct keepers who believe that their vehicle is insured to check with their insurance provider. In this way insurance companies can update or correct their client s MID details and prevent any further action being taken. 6. Will MIB be keeping the insurance industry up to date on how CIE works, and what processes or procedures may need to be addressed? Yes. MIB will keep the industry involved throughout the project with guidance and regular updates about the operational changes needed to maintain and improve the integrity of data kept on the MID. We are aware that some companies may need to modify their processes and we will look at ways of reducing the burden.

6 We will do our best in keeping the industry up to date with developments via MID Account Managers, MIB website, publications and articles in the trade press - but if you feel that you are missing out on anything please contact MIB. BIBA (British Insurance Brokers Association) will also consider the broker s processes and will be issuing joint guidance to members with the MIB. This will be available at all times on the BIBA website in addition to sending out regular updates and guides to members. 7. Have discussions been held with the commercial industries such as fleet, lease and rental operators and how their processes would impact upon or be affected by CIE? Yes, and we are planning workshops with them to understand how CIE affects fleet and lease operators. These will take place over the coming months. These companies may have to change their processes, but Government and stakeholders are sensitive to their needs and are keeping them informed. 8. What issues are there over accuracy of data on MID and is there any move to increase the mandatory data fields as this could have an impact on IT resource? It is very important that the industry plays its full part to ensure the information on the MID, for comparison with the DVLA database, is as accurate as possible. MIB is looking at the more obvious fields that may need to be made mandatory, for example the post code field, and it is possible there may be one or two others. If there are to be any new mandatory fields MIB will give the insurance industry sufficient notice of this and explain the benefits.

7 9. When will vehicle verification for make and model be available on the MID update? A number of options are being considered for MIB to work with the DVLA to assist the industry in validating the VRM - either at the time a policy being purchased or before it is loaded onto the MID. More information will be available later this year. 10. What is being done to tackle the level of miskeyed data as research shows that 90% of problems are caused by online insurance applications? BIBA is aware of the problem and is looking at ways of improving validation software in the software houses. It is also starting an education process within the industry. A lot more work is going to be done on this. 11. What does the term 'persistent no record of insurance' mean? This is an internal system term for when an IAL has been issued, and the vehicle still continues to have no insurance. This means the registered keeper will automatically fall to the DVLA for enforcement. 12. How will persistent offenders be treated, as a person may keep changing their vehicle but pay the Fixed Penalty Notice (FPN)? Any persistent offenders will be flagged through the data comparison process and automatically fall to the DVLA for enforcement. CIE is part of a gradual process to reduce the level of uninsured driving leaving a smaller group to be tackled by other enforcement means, such as the use of Automatic Number Plate Reader cameras at the roadside by the Police to seize vehicles driven without insurance. 13. Will motor trade vehicles become eligible for an IAL and who will the DVLA identify as the registered keeper?

8 Vehicles that are registered as in trade with the DVLA are excluded from the IAL process - as such there would be no need to identify the registered keeper. Motor traders have 90 days before they need to register themselves as the owners of a vehicle bought in trade with the DVLA or declaring a Statutory Off Road Notice (SORN). MID account managers will be able to give guidance and support to motor trader insurers with specific queries about this. 14. Will fleet vehicles registered as part of DVLA s fleet scheme be eligible for an IAL? To qualify for the DVLA fleet scheme the company must prove that vehicles have appropriate insurance cover - therefore an IAL would not be applicable as insurance is already in place. However DVLA fleet vehicles that have insurance and do not appear on the MID may be in breach of different legislation that is failing to update the MID. If this is found to be the case appropriate compliance action will be taken by MIB. 15. Are there any vehicles that are exempt from CIE? Yes. Vehicles exempt under Section 144 of the Road Traffic Act 1988 are not included within the CIE arrangements e.g. depositors. Also exempt are: stolen vehicles vehicles where a SORN has been declared vehicles which have not been used on the road and were last taxed before 31 January 1998 although not a formal exemption from CIE the practicalities governing vehicles in trade (motor traders have 90 days before they need to register themselves as the owners of a vehicle bought in trade with the DVLA or declare as SORN) will ensure they are not included. See question 16 for more information.

9 (N.B. penalties may apply if a vehicle has been declared SORN and is used on the road). 16. Are vehicles in trade exempt from CIE, if so how will they be identified? Vehicles in trade are not formally exempt from the CIE process but the practicalities governing vehicles in trade (motor traders have 90 days before they need to register themselves as the owners of a vehicle bought in trade with the DVLA or declare it as SORN) will mean they will not be issued with with an IAL. In trade vehicles will be indentified using the marker settings within the DVLA system and removed from any subsequent data comparison and IAL process. MID Account Managers will be able to give guidance and support to motor trader insurers with specific queries about this. 17. Will the maximum court prosecution fine of 1,000 be sufficient? The aim of CIE is to move people into compliance by appropriately insuring their vehicle(s). Threat of court prosecution plays a part in this but so too does the FPN, wheel clamping and possible vehicle seizure all of which will have differing effects on different people. CIE alone may not be a strong enough deterrent for some people but this is also true of on the road enforcement. It may take time for this dual approach to have an effect but, when taken into account with wheel clamping, it is sending a clear message to the uninsured motorist that either from the record or on the road that they will be caught. It is important to remember that CIE is, as the name implies, continuous and that MIB and DVLA will be constantly comparing data to identify uninsured vehicles. Details of

10 registered keepers who persistently or continuously fail to insure their vehicles will automatically fall to the DVLA for enforcement. Therefore being caught, either from the record or on the road, will be an ever present threat. 18. Is any pressure being put on the judiciary to increase fines to the maximum amount possible? Penalties imposed are entirely at the courts discretion within the boundaries of the offence. The Department for Transport (DfT) has the power to review and increase level of fines in the future within their area of responsibility. DVLA and DfT have been working with the Court Service to increase the level of consistency of fines and also to increase the level of successful prosecutions. However, courts will encounter the situation where a person found guilty is already defaulting on existing fines, so increasing the fine will make little difference. Evidence from DVLA s experience of enforcement for non-payment of road tax, shows that people will respond to a range of enforcement tactics some to fixed penalties, others to threat of a court appearance and others to wheel clamping. 19. Will CIE be an effective measure amongst young male drivers who may find it cheaper to pay the FPN than purchase insurance? Do we need other means? Regardless of age, gender or income driving without insurance is a criminal offence. Alternatives to the FPN already exist through on the road enforcement which will continue to operate in conjunction with CIE. Police or on the road enforcement enables the vehicle to be seized - in addition to the financial penalty and points on the drivers licence.

11 The efforts the insurance industry has made so far to introduce new products are a step towards making insurance more affordable to younger motorists. 20. Will the Highway Code and Driving Test be amended to reflect changed insurance responsibilities, along with the consequences and penalties e.g. in the Theory Test? The DfT are bringing in some changes in co-operation with Driving Standards Agency (DSA), but we do not have information about the timescales or specific details for this at present. DSA are looking to amend the Pass Plus Scheme that is aimed to influence the behaviour of young drivers, and also help to influence their motor insurance premiums. 21. Is it possible for MIB to name and shame offenders in the media? No. This is neither in the spirit of what MIB is trying do in terms of encouraging compliance nor a practical use of our resources. Quite often not having insurance is just one of several offences the keeper or driver has been prosecuted for and as such there could be complicated reporting restrictions. Of course others, such as journalists or police press offices, may choose to cover such cases in the public interest and these are reported in the press. Through publicity MIB and DVLA, along with the insurance industry, should aim to encourage motorists to make the right choices and help them to understand the changes to the law.