The introduction of Continuous Insurance Enforcement (CIE) will be one of the most significant changes to affect anyone who owns and keeps a vehicle. It is also the most important change for the insurance industry since the Motor Insurance Database (MID) was launched in 2001.

The scheme is supported by the Department for Transport, DVLA, the insurance industry and the police will be a crucial tool to further reduce the level of uninsured driving in England, Scotland and Wales.

What is CIE?

“Put simply, it will be illegal to keep a vehicle and not insure or SORN it.  At this time it is an offence to use a vehicle without insurance.”

From early 2011, anyone keeping a vehicle which does not appear on both the DVLA and the MID records will be contacted with notice advising them to declare the vehicle off road (SORN) or to purchase appropriate insurance.

For anyone who own, drive or keep a vehicle, it will be important to understand these new changes.  In the same way as the TV license used technology to identify homes without a licence, the CIE scheme will use vehicle registration details to identify registered keepers with no insurance.

How does it work?

From early 2011, letters will be sent every day to registered keepers with vehicles which have no SORN record and also appear to have no insurance.

The letter will set out the choices and next steps available, including:

• To declare the vehicle “off road” (SORN) with the DVLA;
• To check with their insurance provider (and/or askMID.com) that the insurance policy details are correct and appear on the MID; or
• To purchase an appropriate motor insurance policy.

Any registered keeper who fails to take action as result will face a £100 fixed penalty notice as well as having their wheels clamped.  Ultimately prosecution and a fine of up to £1,000 could follow.  Of course the police will also continue to carry out their successful roadside operations to seize vehicles from people who flout the law and drive without motor insurance.  Since 2005, more than 550,000 uninsured vehicles have been seized this way.

Since the beginning of 2006 the number of claims to MIB has reduced by 13% and this will reduce even further in 2009.  The introduction of the CIE scheme across England, Scotland and Wales, along with ongoing police activity, is anticipated to save the industry and ultimately consumers about £100 million each year.

What happens now?

The CIE project team at MIB are working closely with colleagues at the DVLA as well as the DfT to ensure that the technology, new systems and the steps to communicate with registered keepers are tested and in place by early 2011.

The teams are focused on selecting the right technology required to review large volumes of data as well as working through the different criteria that need to be used to know which registered keepers will receive the first letter in early 2011 advising them to take action or later face a penalty and clamping.

Currently the levels of uninsured drivers remain unacceptably high – one of the highest in Western Europe in fact. It is anticipated that thousands of letters will be issued every day. Anyone who has a valid tax disc, but doesn’t appear on the MID is a potential candidate to receive the letter.

High Profile

Public interest in the high levels of uninsured driving has increased, particularly with the launch of the Stay Insured campaign in September this year. The campaign aims to remind drivers, who may be vulnerable to cancelling or not renewing their motor insurance during an economic recession, of the consequences of taking to the road without motor insurance.

All drivers need to know that the law relating to insuring a vehicle is going to change. The DVLA and DfT are working with MIB to ensure that the public are made aware in good time and in different ways. This includes working with all insurance providers to help new and existing customers understand the changes that will come about in 2011.

The project teams at MIB and DVLA are looking at the most efficient and effective ways to help those registered keepers who receive a letter with any queries about their tax disc and or their insurance policy.  This includes establishing call centre teams or using existing helplines who have the capability to field calls and clearly guide people through the choices available.  For example, any requests from registered keepers to make changes to the record on the MID can only be managed by the insurance provider directly; and any changes to the registration details of the vehicle will need to be managed by a DVLA agent.

There is much more to the introduction of the CIE scheme than meets the eye.  The challenges of bringing different systems, ways of working and cultures together is being met with real enthusiasm and a commitment to making it work for everyone who owns and keeps a vehicle.