CRACKDOWN ON THE UNINSURED

The launch of the "Motor Insurers Database" in Autumn 2001 will finally put the UK motor insurance industry in line with European directives.

By 2002 all 28 million UK registered vehicles will have their details registered and the police and insurers will have a much easier job in recognising those who are uninsured.

The UK currently leads Europe in the number of uninsured drivers on the road, with an estimated one million people driving without insurance at any one time.

Current public perception of uninsured driving is that it is a minor offence which causes few problems. Few are aware that every honest policyholder pays between £15 and £30 of the average £350 premium to the Motor Insurers Bureau (MIB) to cover costs of claims arising from the uninsured driver. This totals some £400 million a year.

Insurance policy wordings are also now notifying the public that any information that they give will be stored on the database and therefore any lies or misinformation will be noticed and may affect that person’s ability to gain insurance in the future.

By January 2003 the European Directive on Motor Insurance states that each member state must ensure that they have the necessary information to advise foreign accident victims who the responsible insurer is.

Overall, UK insurers hope that the database will lead to savings which can be used to offset the general rates increases which are expected over the next few years.