Continuous Insurance Enforcement Comes Into Force

[Michael Browne]

http://news.blackcircles.com/2011/05/continuous-insurance-enforcement-comes-into-force-145778/

 

Posted on May 23, 2011

The new Continuous Insurance Enforcement (CIE) law came into force today. From now on, vehicle owners must be insured at all the times – even if they do not operate the vehicle.

 

There are a few exceptions to this rule, mainly if you own a vehicle but have officially declared it off-road to the DVLA.

 

The scheme is a joint venture between the Motor Insurance Database (MID) and the DVLA.

 

The scheme will discover uninsured vehcile owners by comparing the the MID’s central database – of 34 million insurance policies – against that of the DVLA’s registered keeper records.

 

Those who are found to officially own a vehicle, but do not have any insurance policies in place, will be sent a letter of warning strongly encouraging them to either buy insurance or to declare the vehicle as ‘off-road’ via the Statutory Off Road Notification (SORN) with the DVLA.

 

If they ignore this warning and continue to own a vehicle without insuring it, they will face:

 

• a fixed penalty of £100
  
• their vehicle being clamped, seized and disposed of
  
• court prosecution with a maximum fine of £1,000
  

The main aim of the scheme according to a press release by the MIB is to “combat the high numbers of uninsured drivers.

 

“About 30,000 claims are made to the Motor Insurers’ Bureau (MIB) each year for accidents caused by uninsured drivers and those that leave the scene. MIB manages a fund to compensate the innocent victims of these accidents.”

 

Unfortunately, the early indications of this new law are not good for legitimate, law-abiding drivers as insurance premiums are estimated to go up by around £30 to aid in the cost funding the scheme.

 

Although the law begins today, it will not be enforced until the 20th June.

 

This time is to give the DVLA time to properly publicise the law, thereby giving vehicle owners without insurance enough time to react to the change in legislation.

 

Motor Insurance Bureau consumer guide here:

http://www.mib.org.uk/NR/rdonlyres/6291A8F4-C89C-410E-B70E-166BC4C2E6EA/738/CIECONSUMERGUIDE110511.pdf

 

DirectGov guidance here:

http://www.direct.gov.uk/en/Motoring/OwningAVehicle/Motorinsurance/DG_186696?CID=Continuous_Insurance&PLA=DM&CRE=Furl

 

BBC News: Uninsured vehicles subject to new rules and fines:

http://www.bbc.co.uk/news/uk-13493056

Edited May 26, 2011 by Michael Browne

[SURFBOY]

Does anyone know how i would declare my vehicle as uninsured?

My vehicle has tax but is currently without an MOT, i have purchased another vehicle and transfered my insurance onto the new vehicle, over the next few weeks i will get the vehicle MOTd and sell it with tax and MOT on it , i do not want to declare it SORN as it has tax.

[Dragons Dennis]

You cannot. You either insure it or SORN it, those are your two options.

[SURFBOY]

Is there realy no other option then?

What if my friend wanted to drive it using his "any vehicle" insurance policy?

[Dragons Dennis]

'any vehicle' policy? either he has a traders poilicy in which case the car will need to be put on MID, or he has a standard policy that allows him to drive other peoples cars, provided they themselves have it insured in the first place. There is no such thing as an 'any vehcle' policy.

[SURFBOY]

Hi, having just checked my comprehensive insurance policy , it states " If your certificate of motor insurance allows it (and you are not in the motor trade or car hire business) we will also insure you, for liability to others, while you are driving a motor car or motor cycle you do not own and which you have not hired under a hire purchase agreement. You must have the owners permission."

It does not state that that vehicle must be insured by the owner.

[crem]

I agree with Surfboy. i.e. I don't believe there is a requirement for the vehicle to be seperately insured for someone else to drive it under their DOV element of their policy.

 

So, here we are only a week into the announcement that they are going to enforce continuous insurance (to allegedly get the millions of uninsured drivers off the road! ha!) and we have a genuine law abiding citizen coming up against the first insurmountable obsticle when he is trying to resolve a simple problem.

[Dragons Dennis]

Think about it. If the other person does not have their car insured, we are back to the top of the thread!

 

Most fully comp policies do allow the policy holder to drive someone elses car as third party only insurance, but that car must be already insured. Check with your insurers people. Seen this many, many times in court.

[SURFBOY]

I have had this debate many times over the years with my friends, i have yet to see it written in an insurance policy document.

What if the registerd keeper of the vehicle was unable to get motor insurance?

Would that mean that he should get rid of his vehicle?

Not a very well thought out policy i think.

[Tony P]

Does this mean -

- if my vehicle has a long period remaining of Road Fund Lisence (tax), that if my insurance runs out and I decide not to use it for a while I cannot just lock it up in my garage?

But I would have to obtain a refund of the tax and SORN it?

 

Seems unusual that the rules require you to make them pay you something!

 

Second query.

I bought a classic car'in boxes' awaiting restoration about 20 years. When putting myself down as RK I also wrote saying it will be off the road for some time (in all honesty I did not have 20 years in mind - but life is never predictable!) As I bought it off the road before SORN, I have done nothing since with DVLA.

Should the various boxes of bits now be insured?

[Michael Browne]

 

Second query.

I bought a classic car'in boxes' awaiting restoration about 20 years. When putting myself down as RK I also wrote saying it will be off the road for some time (in all honesty I did not have 20 years in mind - but life is never predictable!) As I bought it off the road before SORN, I have done nothing since with DVLA.

Should the various boxes of bits now be insured?

 

http://www.direct.gov.uk/en/Motoring/OwningAVehicle/Motorinsurance/DG_186696?CID=Continuous_Insurance&PLA=DM&CRE=Furl

 

 

 

If you're the registered keeper of a vehicle, it must be insured at all times.

The exceptions are:

 

• if you have made a SORN for the vehicle
  
• if your vehicle has been kept off-road since before SORN came into force on 31 January 1998 – unless it was brought back into use
  
• if your vehicle is recorded as stolen, passed or sold to the motor trade or between registered keepers
  
• if your vehicle is recorded scrapped or permanently exported by the Driver and Vehicle Licensing (DVLA)
  

 

[dpick]

Hi all regarding using third party part of fully comprehensive insurance, A friend of my son was caught driving car without insurance(car just purchased by him). When asked by police if anyone they knew had insurance to drive car they could only think of me, I was then rang by police and asked if I could come and get the car. They checked I had fully comp and I drove the car to his home. I dont know what checks police made they just checked my driving license.

 

dpick

[crem]

A friend of my son was caught driving car without insurance(car just purchased by him). When asked by police if anyone they knew had insurance to drive car they could only think of me, I was then rang by police and asked if I could come and get the car. They checked I had fully comp and I drove the car to his home. I dont know what checks police made they just checked my driving license.

 

dpick

 

This obviously happened before teh police were given the power to seize vehicles for no insurance which they seem far too eager to do whenever they can.

[SURFBOY]

"Does this mean -

- if my vehicle has a long period remaining of Road Fund Lisence (tax), that if my insurance runs out and I decide not to use it for a while I cannot just lock it up in my garage?

But I would have to obtain a refund of the tax and SORN it?"

This is my problem exactly i do not want to get a refund for my tax however my vehicle is out of MOT for a short while, i have transferd my insurance to my new vehicle and in the meantime i wish to carry out some minor repair to the car, get it MOTd then sell it with tax and MOT because i will get a better price for it.

[Conniff]

I can't for the life of me see the logic in [con]tinuous insurance except as a means for insurance companies to make 'extra' profits. Would someone like to explain it to me?

 

What does it achieve?

[crem]

Would someone like to explain it to me?

 

 

I'd like to explain it to you Conniff.... which I will do shortly after someone explains it to me in the first place!!

 

I am sure you have often noticed as well, how often insurance companies claim that covering uninsured drivers costs us all about £50 on our (correct) insurance. What's the betting they bring all our policies down by 50quid next year?

[Conniff]

What's the betting they bring all our policies down by 50quid next year?

 

I'll look forward to that, I wonder if they will pay it out at the same time as they pay out the loyalty bonus.

[mightymouse_69]

i have yet to see it written in an insurance policy document.

 

There are policies which state that the other car must be insured - such as Admirals for example: http://www.admiral.com/policyDocs/AD116%200311%20Policy%20Booklet.pdf (page 13) or Elephant: http://www.elephant.co.uk/policyDocs/el51_POLICYBOOK_PORTRAIT_0311.pdf (page 10).

 

Even under the old law, it made sense for the other vehicle to be insured unless one was driving it from one location directly to another off road location.

 

The idea of the scheme is to reduce the number of uninsured vehicles on the road. There was a problem with people having uninsured cars parked in their drives which would be used when the owner needed to make a trip to the local shops etc.

 

Whether this scheme will make any massive impact remains to be seen. From what I have heard, warning letters will be sent out first, then a fine and then there will be an option to have the vehicle recovered.

[hightail]

What if the registerd keeper of the vehicle was unable to get motor insurance?

Well if the registered keeper can't get insurance then they shouldn't drive it so why not declare it SORN? If somebody else wishes to drive it then surely they can insure it in their name for whatever period they wish.

[darkandstormy]

] This is absolutely a ridiculous Law, and I for will be fighting it tooth and nail, I have a special vehicle which I use when I need to, and it sits on private property, and I insure when I need to, if any of those fools think they can trespass on my property and take my vehicle , they will have another thing coming.

 

ANOTHER STEALTH TAX FOR VEHEICLE OWNERS.. IT IS TAXED, MOT'D AND I INSURE WHEN I DAM WELL USE IT, SO IT IS LEGAL, THESE JACKASSES THINK THEY CAN TAKE MONEY FROM PEOPLE WHENEVER THEY DAM WELL FEEL LIKE, I WILL BE IN COURT FIGHTING THIS ALL THE WAY TO THE EUROPEAN COURT OF HUMAN RIGHTS..

 

 

 

ABSOLUTELY RIDICULOUS, AND I REFUSE TO COMPLY:-x

[Raykay]

] This is absolutely a ridiculous Law, and I for will be fighting it tooth and nail, I have a special vehicle which I use when I need to, and it sits on private property, and I insure when I need to, if any of those fools think they can trespass on my property and take my vehicle , they will have another thing coming.

 

An uninsured vehicle can only be immobilised or removed if it is on a road or other public place - schedule 2A, Road Traffic Act 1988.

[darkandstormy]

IT IS MY PRIVATE DRIVEWAY, And the law is still an ASS , and I will defy it, starting with my MP in the next few days. it will also put people out of business (ie Temporary Insurers) I am not repeat NOT going to waste my money insuring a vehicle that is only used when IO have to, and in the meanwhile it is taxed and MOT'd, and that is as far as I am ever going to nebe concerned is how it should stay. yes catch all THE MONGRELS WHO ARE SO DAM STUPID THAT THEY TAKE A CAR OUT N THE ROAD WITHOUT ANY INSURANCE, BUT THIS IS NOT THE WAY TO GET THE PUBLIC BEHIND THIS EXERCISE.. EMPLOY MORE PEOPLE TO DETECT THE CULPRITS ON THE ROAD, AND LETB THE POLICE( PEOPLE OF LITTLE INTELLIGENCE CONNING EVERYBODY) DEAL WITH CRIME.

 

WHAT THEY ARRE SAYING IS THAT KNOW WHERE ALL UNINSURED VEHICLES ARE AND THEY WILL COME REMOVE THEM, HENCE THE TRESPASSING LAW COMES INTO FORCE, AND I WILL KICK SOMEONES BUTT IF THEY TRY TO REMOVE MY CAR FROM MY DRIVEWAY...

[Raykay]

But they won't, they can only immobilise or remove uninsured vehicles that are on a road or other public place.i

[mr2mr2]

unless they go the court route and try for more money that way and not the expense of tow truck

[Gick]

Dragon Dennis,

 

May I correct you with regard to Motor Trade Insurance. The obligation is only to notify the MIB of a vehicle that is likely to be in the Trader's custody or control for more than 14 days, or if it could not be anticipated, on the 14th day. It would be impractical to notify them every time I collected a customers vehicle or to otherwise insist on seeing the customer's own documents.