Continuous motor insurance enforcement: DfT concludes that hgvs should be covered by the scheme

In February 2009, the Department for Transport (DfT) consulted on proposals to introduce continuous enforcement of motor insurance.

This would be achieved by reconciliation of the Driver and Vehicle Licensing Agency (DVLA) vehicle register and the Motor Insurance Database. A three-phase enforcement approach would include:

• warning letter to registered keeper
• issuing of a fixed penalty notice
• vehicle wheel clamped, impounded and disposed of, with a possible fine of up to £1,000

Following the consultation, DfT has concluded that:

• the two databases are sufficiently robust and accurate to use as the basis of an enforcement approach
• the warning letter should form the first stage of the enforcement process
• there should be no expansion of the limited list of exemptions proposed in the consultation FTA had argued that hgvs should be exempt reasoning that no evidence exists to suggest that the sector is non-compliant.
• liability will remain with the registered keeper, even if the keeper is a leasing or hire company. FTA supported this approach
• a 50 per cent early payment reduction on the £100 fixed penalty should remain, although this will be reviewed once the scheme is operational.FTA has argued that there should be no early payment reduction, as a £50 the fine is not a sufficient deterrent
• a new offence will be created which DVLA , or its authorised agents have power to enforce.FTA wants safeguards from DVLA that contractors will be subject to a strict code of practice

Continuous motor insurance enforcement is likely to come into force in 2011.