As an experienced Motor Trade Insurance broker, we often get asked questions about the Motor Insurance Database (MID). In this article we provide guidance on the MID and why it is important for your motor trade business.
What is the Motor Insurance Database and what do I need to do?
The Motor Insurance Database (MID) is administered by the Motor Insurance Bureau (MIB) and is a centralised record of all insured vehicles and trade plates in the UK. It’s used by the Police and the Driver and Vehicle Licensing Agency (DVLA) to administer Continuous Insurance Enforcement (CIE).
It is a legal requirement that vehicles are on the MID and it is kept up to date. It is the responsibility of the motor trader to keep it updated, although as your insurance broker SEIB can also do this for you.
When you buy or sell a vehicle there is a grace period of up to 14 days to update the MID, however we strongly recommend updating it as soon as you can. The Police can, and have, stopped policyholders within the 14 day period.
Alternatively, if you take a vehicle ‘off the road’ and want to stop taxing and insuring it, then you need to submit a Statutory Off Road Notification (SORN) to the DVLA. A vehicle is off the road if you do not keep or use it on a public road, for example if it’s being stored in a garage.
Are there any exemptions from Continuous Insurance Enforcement (CIE)?
There are a handful of circumstances under which your vehicle is exempt from the CIE regulations. These include vehicles:
- With a valid SORN
- That are exempt from needing a SORN
- Owned by the crown
- Recorded as “scrapped”
- Recorded as “stolen and not recovered”
- Recorded as “disposed”
- Recorded as “disposed to the trade”
- Recorded as “exported”
Insurance Implications:
Vehicles sold and not removed from MID
If a Motor Trade policyholder sells a vehicle and does not remove it from MID, the policyholder remains responsible for it and by default, so will their insurer under Article 75 of the Road Traffic Act.
The Road Traffic Act 1988 (RTA) and Article 75
Article 75 is part of the Act where there is an agreement between the MIB and its members (The insurance companies) where members will accept liability on certain cases where they would not be liable under the RTA.
If the new owner has an accident and they have not arranged insurance elsewhere or provided details to a third party, then it is possible that the motor trader's insurer may be left dealing with the claim, or at least sharing responsibility.
A claim could be paid against the policy that could have an effect on premiums and/or No Claims Discount levels. In addition, it is a reflection of the trader’s approach to risk not having updated the database promptly. It is therefore imperative that motor traders maintain the MID in a timely manner to avoid any issues.
Additional vehicles that are purchased by the business (not customers’ vehicles)
The police make over 2 million enquiries a month on the MID to check if vehicles have adequate insurance, and have the power to seize vehicles which they believe to be uninsured. By making sure your motor trade vehicles are correctly added to the MID when they come on cover and then removed when you no longer have them, you can save yourself and the police time, and even save your drivers or customers the inconvenience and stress of being stopped by the police, and the costs associated with recovering the vehicles.
About SEIB
We’ve been arranging Motor Trade insurance for over 20 years. As a business, we have helped motor traders of all sizes source the insurance they need. If you’d like to request a quote, please call us on 01708 850 011 or email motortrade@seib.co.uk.
You can also find more information about the MID by visiting the Motor Insurance Bureau website here.
