MID Explained
We have a dedicated MID Team to help policyholders who deal with the MID. The following page contains information concerning what the MID is for and why it has been established.
MID The Facts:
- every vehicle in the UK must be listed on the MID (Motor Insurance Database)
- there are compliance deadlines with fines for both insurers and policyholders if these are not met
- the MID’s objective is to combat uninsured driving
- Police use the information on the MID to check vehicles are insured
- to purchase road tax for a vehicle online the vehicle needs to be listed on the MID
MID Explained
MIB - Motor Insurance Bureau
The MIB deal with victims of uninsured driving. Insurers are obliged by the virtue of the Road Traffic Act 1988 to be members of the MIB and contribute towards its funding.
MIIC - Motor Insurance Information Centre
The MIIC is an organisation within the MIB who set up the MID with the Government and now oversee the running of the MID.
What is the MID?
The Motor Insurance Database (MID) is a record of every vehicle that is insured in the UK. This data is used for several purposes.
The Motor Insurers Information centre (MIIC), Police, authorised solicitors, the relevant insurer and the DVLA can access the data on the MID, under strictly controlled circumstances. Broadly speaking:
- the police use the MID to determine at the roadside whether a vehicle is insured
- solicitors, insurers and others can access the MID to trace third party insurers in the event of an accident
- the MID is used to provide insurance information for DVLA’s online vehicle licensing service
What are the compliance targets?
The Department For Transport (DFT) have set specific targets for getting data on to the MID.
MID 1 or MID 2 | January 2008 |
|---|---|
MID 1 – single vehicle policy | 95% Policy and vehicle data to the MID within 7 days |
MID 2 – multiple vehicle policy | - |
Policies | 95% policy data to the MID within 14 days |
Vehicles | 95% vehicle changes to the MID within 14 days |
If these targets are not met, there are sanctions in place and the insurers will be fined by the MIIC / DFT. If the policyholders of MID 2 policies do not keep the vehicle schedule up to date, they can also be fined up to £5,000.
Why is this in force?
There are several reasons:
4th EU Directive on Motor Insurance
The 4th EU Directive states that each member country must be able to trace the insurer of a vehicle by the registration plate of that vehicle. The UK achieved compliance of this directive by implementing the MID. The 4th Directive was introduced to make it easier for those injured in accidents (including your clients) whilst visiting another EU state to receive compensation by:
- requiring there to be an Information Centre which can identify the insurer of the other party from the registration plate
- allowing the injured party a direct right of action against the insurer
- requiring the insurer to nominate a representative in the injured party’s own country who has sufficient powers to settle the claim
- ensuring that there is a compensation body to pay the claim in the event that the insurer cannot be identified or is unreasonably slow in settling a claim
Combating Uninsured Driving in the UK
The insurance industry recognised that uninsured driving was increasing the cost of insurance. The Government recognised the associated costs of uninsured driving and the impact that accidents involving uninsured drivers was having on hospitals, the Benefits Agency and on society in general and that these problems had to be tackled.
This led to the commissioning of a report by Professor Greenaway into uninsured driving in the UK. The recommendations in this report and the subsequent activity in the market have led to many operational and other changes by insurers, including the removal of days of grace and the move by many to auto lapsing of renewals.
The Association of British Insurers (ABI) commissioned a further report by PA Consulting, which gave an industry view on the original recommendations in the Greenaway report. This review, “Delivering a more up-to-date MID”, has been widely welcomed by the industry and Government as a major step forward in the industry playing its part in helping to combat uninsured driving.
The police utilise the MID to determine whether a vehicle is insured. In fact they are the single largest user of the database with thousands of searches every day. The Police even have access via the Police National Computer whilst in their cars. They can check insurance details without even stopping vehicles.
Automatic Number Plate Recognition (ANPR)
The roll out of ANPR technology will continue throughout 2008. This new technology allows the police to check vehicles passing the ANPR camera for insurance, using MID data. This will become one of the most useful tools in combating uninsured driving.
Electronic Vehicle Licensing
The DVLA has moved to online purchase of vehicle license duty or road tax as it is commonly known. To ensure that this runs smoothly it is necessary for DVLA to know that vehicles are insured. The MID is being used for this purpose.
Use of MID
The Road Safety Act 2005 means that its is an offence to keep a vehicle without adequate insurance. It allows the Government to appoint an agency to manage statutory enforcement from the record. This means that simply keeping a car without insurance is an offence in the same way that keeping a car without road license fund duty is an offence. Committing an offence will lead to an automatic fine, exactly the same as the road fund licence fines.
Anti-Fraud initiatives also use MID data. The ABI in conjunction with Polaris have created an industry led database to combat serious organised fraud. This links several databases, including MID, to identify and track serious fraud.
MID 1 and MID 2 Explained (PDF 23KB)
MID FAQ (PDF 191KB)
MID top tips (PDF 24KB)
Make MID more effective (PDF 519KB)
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