Motor trade and fleet declarations

We are sure that the vast majority of vehicle owners are now aware of the existence of the Motor Insurers Database (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 as the insurers need to be told as well.

Failing to notify both the insurers and MID could find vehicles seized by the police and the possibility of fines of up to £5,000 or, more seriously, the vehicle could be uninsured meaning you would have to foot repair bills and pay damages to any third party.

For this reason, if you are a vehicle owner, you should be aware 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

For further information contact your Oriel Gavin (Commercial Team Manager) on 020 7330 8714.