Fleet managers urged to prepare for new insurance laws
It could soon be illegal to own uninsured vehicles if new plans from the Government come to fruition this spring.
An official start date has not been announced as yet but the Government is keen that the move will clamp down on the number of uninsured drivers on the road.
Fleet managers and leasing companies won’t be looking forward to the administrative mountain they’ll have to conquer when registered keepers will be required to ensure their vehicles are insured at all times.
Organisations that lease vehicles would be forced to inform their suppliers of every change relating to insurance documentation where in the past, signing a ‘master hire’ agreement with their contract hire and leasing vehicle provider that includes a commitment to insure would have been sufficient.
Repercussions
Those who fail to insure their car will be hit with a £100 fine, regardless of whether it is being driven. If the vehicle remains uninsured, it could be seized and destroyed. Vehicles with a valid Statutory Off Road Notice (SORN) will not be required to be insured.
“Contract hire and leasing companies can no longer wash their hands of the insurance responsibility when the new legislation comes into place as they will be responsible for ensuring that customers have correctly insured all vehicles,” said Jason Francis [pictured], MD of fleet software provider Jaama.
“When the authorities run checks on vehicles and discover that a leased vehicle is uninsured, it will be the contract hire company that is targeted.
“As a provider of software to a number of the UK’s leading contract hire and leasing companies, we are actively helping them to update their internal administration processes.
“The onus is now on vehicle providers to ask their fleet customers to inform them every time there is the slightest policy insurance change.”
Act now
As unappealing as it sounds, Mr Francis urges leasing companies to begin rounding up insurance details from their customers as soon as possible.
While outright purchase fleets are the registered keeper of vehicles, therefore avoiding the administrative burden, Mr Francis advises that they should ensure that current insurance documentation is on the Motor Insurance Database (MID), which is managed by the Motor Insurers’ Bureau (MIB).
Jaama’s Key2 Vehicle Management software features a module that enables contract hire and leasing companies to maintain customers’ vehicle insurance details.
“Our Key2 system enables insurance data to be instantly updated and a file uploaded direct to the MIB every time a change is made following the acquisition or defleeting of a vehicle,” Mr Francis added. “This process removes at a stroke the need for businesses to contact the MIB directly or manually enter details via the MIB website.
“The authorities have said that the MID will be systematically checked so that the levels of uninsured driving are reduced even further. Therefore, it is vital that leasing companies and all fleets have the administration processes in place to ensure they remain on the right side of the new law when it comes into force.”
Around 1.4 million (4%) British motorists drive without insurance.
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