Motor Trade Insurance and the MID
People who drive without adequate insurance or no insurance cover cost the UK motorist £500 million per year, the result of this means that every insurance policy sold in the UK includes an amount to pay for these uninsured drivers.
To deal with this problem the insurance industry and the motor insurance bureau (MIB) www.mib.org.uk developed the motor insurance database (MID)
The police make over 2 million checks each month on the MID to ensure that vehicles have adequate insurance in force. The police have the power to seize vehicles which they believe to be uninsured. By ensuring that your motor trade vehicles are continually updated on the MID, each time you get a new vehicle or declare that you no longer have one, you are helping the police to concentrate their efforts on those drivers who do not have adequate motor insurance.
Details on potential uninsured vehicles, which include motor trade vehicles that have not been added to the MID, are now provided to the police which in turn is fed into their number plate recognition network. When an uninsured vehicle passes one of these cameras the police are alerted and the vehicle can be stopped. If the details of your vehicles are not up to date then your vehicle could be seized, even if you have a UK motor traders insurance policy.
The MID is also used to support the 4th EU motor insurance directive. This means that insurers are readily identified using just the registration number. This directive covers all vehicles including those covered by a motor trade insurance policy. UK regulations passed in 2003 place a legal obligation on the policy holder to ensure that vehicle details are kept up to date. All vehicle records must be kept for a period of 7 years. Failure to comply with these regulations is a criminal offence, and the maximum fine for failing to do so is £5,000.
How do I update my motor trade vehicles to the MID?
When you incept your motor trade insurance policy you will be asked by your insurance broker or insurer to supply the data concerning all your vehicles (both own vehicle and stock vehicles) to them. When you arrange your motor trader insurance policy be sure to ask your broker / insurer as to how they want you to provide your vehicle information.
When should I update my motor traders insurance policy with my MID details?
The regulations state that you should update your details to the motor insurance database (MID) immediately, it should therefore be done as soon as possible.
Which vehicles should be added?
All vehicles insured on your traders insurance and all trade plates owned should be added to the MID including all permanent vehicles (e.g. those registered to, leased or owned by you) and any temporary vehicles held for more than 14 days.