The Facts about the Motor Insurance Database (MID) and how it can affect your business.

Here in the UK we have one of the worst records in Europe for Uninsured Drivers, with an estimated one in every 20 cars on the road not holding legally required insurance. As a result of this every honest motorist and company in the UK is paying up to £30 per vehicle insurance to compensate the innocent victims of these cheats, and unfortunately this seems to be an ever increasing problem.

In an effort to combat the problem and comply with the 4th EU Motor Insurance Directive, which requires that insurance details of all vehicles in member states can be easily accessed by a national information centre, the Insurance industry set up the MID which is now widely used by many large organisations, the police being it’s biggest user with over 3.8 millions enquiries per month, which compared to the next largest customer, the DVLA at only 1 millions enquires, shows just how heavily the police are using the system.

If you hold a private motor insurance then your details are automatically entered onto the MID by the insurers. However, as a commercial policyholder (this includes fleets, motor traders and taxi firms) YOU are responsible for regularly submitting information about your vehicle to the database – either via us (your broker) or directly.

The police are using the MID to trace uninsured vehicles and this could have an adverse effect on your company for the following reason:

The Automatic Number Plate Recognition (ANPR) system is being used by the police at the roadside and in automatic cameras across the UK to help catch anyone who thinks they can ignore the law and not insure their vehicle.

It is estimated that around 150,000 vehicles were seized by the police in 2007, following the use of ANPR, which connects with the MID and DVLA to check that a vehicle has the relevant Tax, Insurance and isn’t reported lost or stolen. If the police suspect a vehicle of any of the above they now have new powers to seize the vehicle at the roadside.

Once the vehicle is seized, the owner faces a vehicle recovery charge which is a minimum of £ 105.00 (plus VAT) and at least £ 12.00 per day in storage charges until the relevant paperwork is produced. If this has not been provided within a 14 day period then the police can crush and destroy the vehicle.

Even if the vehicle is fully insured, if it’s not on the MID then the police can still seize the vehicle until they are satisfied that the insurance is in place.

So it’s no longer enough to just be insured, you must ensure that your company vehicles are on the MID.

The message is simple: Update your vehicles on the MID as quickly as possible so that your staff are not inconvenienced by unnecessary questions and you don’t incur the costs of vehicle recovery, storage and not forgetting wasted time and the possibility of lost earnings, none of which can be reclaimed!