Car Insurance and new rules on spent convictions

[Ethel Street]

I'd be interested to know what others think about the effect of changes in the law on spent convictions (which come into force next week) will have on your obligation to disclose convictions when applying for motor insurance.

 

According to GOV.UK if the penalty was only a fine it will now be 'spent' after one year instead of the present 5 years.

 

https://www.gov.uk/government/news/reforms-to-help-reduce-reoffending-come-into-force

 

According to FOS spent convictions do not have to be disclosed to insurers even if the Endorrsement is still on the driving licence, and if an insurer who found about about the spent conviction (eg by seeing the endorsement on the licence) acted on that to the detriment of the insured FOS would find in the insured's favour.

 

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/25/25-disclosure-of-spent-motoring-convictions.htm

 

The FOS position couldn't be clearer: 'If firms insist on asking questions about spent convictions, then they must effectively ignore the answers they receive. Otherwise, we are likely to consider they have breached their statutory duty'.

 

So does that mean that from next Monday you do not need to disclose any motoring offence for which the penalty was only a Fine (ie, most of them) if the conviction date was more than 12 months ago? (Compared to the current 5 years.) I haven't heard any publicity about this, or anything to suggest insurers got an 'exemption' from the spent convictions rules. Perhaps they're hoping no-one will notice! As I undertstand it if an insurer asks 'Have you had any convictions......' you can legally answer 'No' even if you have had convictions as long as the conviction is now 'spent' (ie from next week, it was more than 12 months ago).

Edited March 4, 2014 by Ethel Street

[unclebulgaria67]

The new rules will apply to Insurers when people approach them for new policy quotes and in regard to renewals. All Insurers/brokers should have been updated about this sometime ago and they should have updated their systems, training/underwriting guidance.

 

Insurers can ask about all convictions, but they just cannot use the spent convictions to determine their quotes or terms they offer. The driving offences are kept on the licence for longer, so that they can be considered when dealing with further driving offences.

[leonmassey]

So in simple terms does this mean a driving offence where points and a fine are awarded are now spent after 12mth for insurance procedures but remain on the licence for totting up purposes only.

[blackknight]

Sounds to me like only the Fine is cleared after 12 months but you still have the points to declare!!

[Slimm]

I can't immediately think of any motoring conviction where you would not get points or a disqualification that insurers would really be worried about. Even a humble speeding charge would generally get you some points.

[Ethel Street]

I don't think points are part of the penalty officially but even if they were all non-custodial penalties are spent after 12 months according to the GOV.UK item.

[Slimm]

If that's the case then presumably my car insurance will rise to pay for drunk drivers who now get cheaper insurance. Nice.

[Ethel Street]

An update, since my original question the Ministry of Justice have issued new guidance on Rehabilitation of Offenders, 'spent' conviction periods etc, following the new regulations from March 2014. This is what they say about motoring offences:

 

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/299916/rehabilitation-of-offenders-guidance.pdf

 

What are the rehabilitation periods for motoring offences?

 

An endorsement for a road traffic offence listed in Schedule 2 to the Road Traffic Offenders Act 1988, imposed either by the court or by means of a fixed penalty notice (FPN) is a sentence for the purposes of the 1974 Act and may become spent after 5 years (or two and half years where the offender is under 18). Road traffic legislation specifically provides for a FPN in these circumstances to be treated as a conviction and dealt with as such under the 1974 Act. Penalty points and a driving disqualification imposed by the court on conviction may become spent when they cease to have effect (penalty points have effect for three years as set out in road traffic legislation). Where the court imposes more than one sentence or penalty for the offence then the longest rehabilitation period determines when the conviction may become spent.

 

A fixed penalty notice (FPN) can be used to deal with minor road traffic offences, but it is not a criminal conviction or a caution and the 1974 Act does not apply.

 

Examples

 

An adult is convicted of a road traffic offence, and the court imposes a fine (rehabilitation period 1 year), an endorsement (rehabilitation period 5 years), penalty points (rehabilitation period 3 years) and driving disqualification for 1 year (rehabilitation period 1 year); the rehabilitation period for this conviction will be 5 years because the endorsement carries the longest rehabilitation period.

 

If the offender was under 18 and received the above sentence, the conviction may become spent after 3 years because the longest rehabilitation period applicable would then be three years for the penalty points (the endorsement would become spent after two and half years).

 

Once the conviction becomes spent, the person is not required to declare it when applying for most jobs, or (motor) insurance

 

It is the case for all convictions (not only road traffic convictions) that where more than one sentence or penalty is imposed then the conviction may only become spent once the longest rehabilitation period which applies has ended.

 

For more information on the rehabilitation periods for particular driving offences, please consult:

 

www.direct.gov.uk/en/motoring/driverlicensing/endorsementsanddisqualifications/dg_10022425

 

Important Note: This is intended as general guidance only. It is not legal advice and must not be

regarded as a definitive interpretation of the 1974 Act. Anyone in doubt should seek their own legal

advice.

 

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I'm still a bit puzzled by the information given for how long after the offence an endorsement has to be disclosed. The guidance above says "an endorsement (rehabilitation period 5 years)" but on the link at the end of the guidance to GOV.UK it says "An endorsement must stay on your driving licence for at least 4 years from either the date of conviction or the date of the offence." [for most offences it's 4 years from date of offence] and that after 4 years you can have them removed. I don't understand the discrepancy between the 4-year and 5-year periods. Does that mean that after 4 years you could have no endorsements on your licence but still have to declare the offence when applying for motor insurance for a further year? Confusing or what! (I'm not actually in this situation BTW, just curious).

Edited April 4, 2014 by Ethel Street

[Mr lex]

All good information folks.

 

 

CAG to the rescue again !!!

 

 

Many, many thanks for your time and trouble

 

 

Lex