Insured Drivers face fines and crushed cars
6th, October 2008
A failure by the insurance industry to update the Motor Insurance Database (MID) could cause up to 1.5 million innocent motorists having their vehicles seized or even crushed.
Policyholders can appear to be uninsured because insurance companies are failing to update the MID database promptly. Insurers are required to update the system within seven days or face a fine of up to £5000 but many are taking a lot longer.
The misconduct adds to problems tracking the number of uninsured drivers in the UK, which has now reached over two million.
According to the Insurance Research Council six percent of UK drivers are uninsured, with only Spain (10 percent) and America (15 percent) being worse. Ireland is equally as bad with 6 percent uninsured.
The Council stated most drivers believe the current fine of £200 is inadequate to cut the costs of insurance premiums, which add an extra £30 each year to policyholder payments.
“Drivers of uninsured vehicles are far more likely to commit a variety of motoring offences than insured drivers and are estimated to cause 23,000 deaths and injuries on the roads every year,” said the Motor Accident Solicitors Society.
Police are now using number plate recognition systems linked to the MID database to help them seize uninsured cars. Over 112,000 vehicles were seized in 2007. The Association of British Insurers would like to see more punitive treatment of offenders such as community service where the individuals ability to pay is a problem.
