Archive for Month: September 2016
Continuous Insurance Enforcement
C.I.E. – as a Motor Trade business owner, those three letters should be very important, and rather scary. With recent regulations in Britain changing to mean that a vehicle must be insured as long as it is on the road, it is harder for people to get away with driving without insurance. However it means that as soon as your insurance runs out, and you don’t plan on renewing, said vehicle must be declared as S.O.R.N. (Statutory Off Road Notice).
When a vehicle is spotted by an ANPR Camera, data is pulled from the MID (Motor Insurance Database) to see whether the vehicle is insured or not. If it isn’t, the owner will received an Advisory Letter, which notifies them that it’s uninsured. There will be a warning that action will be taken unless they either declare it as SORN, or insure it. However, the system can be wrong sometimes. Maybe it’s a case of information not updating, or a miscalculation by the ANPR, but as with most technology and online systems, they run into problems now and again.
If you are found to be using the vehicle without insurance after the Advisory Letter, then there will be a fixed penalty of £100, clamping and seizing of the vehicle, and a court prosecution with maximum fines of around £1,000, but if there is a mistake, all you can do is get in touch with your insurer, make sure all is okay, and get them to pass your details on to the Motor Insurance Database. They will update their list to include your vehicle as insured. You can also check for free on their website, yourself. However, you can’t appeal against any fines or court prosecutions involved – the best time to check is as soon as you receive the Advisory Letter – that way you can kill the problem before it develops.
Just be careful as a motor trader with multiple vehicles – each one could have the insurance run out at any time, or even be mistakenly clocked as not being insured at all. An interesting tactic found online was to spread your vehicles purchases out over the year, then also spreading out the insurance to reduce lump costs, while maintaining a list of what was insured when, almost like a stock list, to keep everything organised and correct. Ensure that you have your car insured, or if you drive a van, you have a comprehensive van insurance policy in force.
For the sake of your business, employees and income, just make sure that everything is up to date and legitimately insured, and nothing can go wrong.