Centor Insurance and Risk Management Ltd

Motor trade and fleet policies insured on a declaration basis – do you know your responsibilities?

We are sure that the vast majority of vehicle owners are now aware of the existence of the MID, the reasons for it and who has access to it. However, some vehicle owners think that by simply notifying the MID of their vehicle changes they do not then need to advise their insurer of the amendments. This is not the case, and by failing to notify both they could find their vehicles seized by the police and the possibility of fines of up to £5,000 or, more seriously, uninsured and having to foot repair bills and pay damages to any third party.

For this reason, if you are a vehicle owner, we would remind you of your obligations to advise both the MID and your insurers of vehicle changes.

There are two separate obligations placed upon a vehicle owner whose contract of insurance is based on a declaration basis. They must:

notify the MID within 14 days of additions or deletions occurring to their vehicle schedule
advise their insurer according to their contractual arrangement of amendments to their fleet schedule (this will be either immediately/ quarterly/ half yearly). If you are unsure then please contact us to determine your policy obligation

In summary:

The Certificate of Insurance is still the statutory document which confirms insurance is in place
The insurer must be advised of changes in the vehicle schedule in accordance with the declaration terms shown on the policy schedule
The policyholder is responsible for updating the MID and must do so within 14 days of the change

If you have any queries concerning this topic please do not hesitate to contact Oriel Gavin (Commercial Team Manager) or speak to your usual Centor contact.