Continuous Insurance Enforcement (CIE) came in to force, almost silently on 20 June 2011. These provisions affect all motorists as it gives the DVLA power to clamp, seize and destroy a vehicle if it does not have valid insurance. Fines and Court proceedings can also be issued. The regulations apply to any vehicle, even if they are not being used on the road, unless you possess a Statutory Off Road Notice (SORN).
It is said that these provisions will reduce incidents of uninsured driving and the related cost of uninsured claims, estimated to be £500 million per annum. This cost is currently being paid by honest motorists through their insurance premiums, so can we all assume our insurance expenditure will reduce next year? Seems unlikely.
Over recent years, police forces have utilised the Motor Insurance Database together with Automatic Number Plate Recognition, to apprehend people driving without insurance and so have successfully reduced the prevalence of this offence. This initiative arguably set out to achieve similar goals to CIE and despite its success; insurance premiums have shown a marked increase over the last 12 months.
Whilst appreciating certain aspects of this new scheme, some would criticise this as a money spinning system, penalising motorists for not spending hundreds of pounds insuring vehicles that are not even being driven or kept on public roads. It could also be said that despite the premise for the scheme, it will yield no benefit, financial or otherwise to the average motorist but will enhance revenue for insurance companies and government agencies.
It will be interesting to see whether CIE does, as intended, reduce the number of uninsured drivers over the next 12 months. Moreover, to observe how any benefit will be passed on to honest motorists.
So… money saving or money spinning?
Nick Terry works for DrivingOffence.com, a division of Burton Copeland solicitors.
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