Biba joy as e-certificates to come into force by end of April

Legislative changes enabling the electronic delivery of motor insurance certificates to customers will come into force at the end of this month, Biba has confirmed.

The DfT (Department for Transport) has confirmed to Biba that the new regulations will be laid before parliament tomorrow. It is intended for new regulations to be in force on 30th April 2010.

The news follows years of negotiations between DfT and Biba and mounting concerns over recent weeks that it would not be enacted before the general election is called and Parliament dissolved. The ABI has been instrumental in getting e-certificates passed, lobbying the Government hard.

From the end of April, where a customer agrees to electronic delivery with their insurance provider, a certificate can be issued as an email attachment or accessed via a website.

Graeme Trudgill, Biba Technical and Corporate Affairs Executive, said: “After five years and discussions with numerous ministers, we are delighted to see these proposed changes in legislation”. This really will benefit everyone - a speedier service for clients, a cost saving for the industry and a real benefit for the environment.”

“The post strikes really bought home the need for this change. BIBA and its peers have worked to overcome all of the issues and find a way to make this a reality. Changing long standing legislation is never easy and it has required key pieces of law to be changed to achieve electronic certificates.”

Electronic delivery of motor certificates is expected to save the industry in excess of £10m, reduce the environmental burden of 40m certificates being printed and posted each year, and ensure that motorists have quicker access via the internet to their certificate if they need it.

Eric Galbraith, Biba Chief Executive, commented: “This change was top of our motor committee’s agenda, Biba has worked closely with the DfT and their lawyers to go through the many potential problems including concerns over fraud, how to surrender a certificate that is on your computer, how to protect people that don’t have computers, in which format they should be delivered or printed, and the potential redistribution of the Motor Insurers’ Bureau levy if certain rules are changed."

Nick Starling, ABI’s Director of General Insurance and Health, said: “ We are very pleased that electronic certificates will now become a reality. The ABI has been instrumental in calling for their introduction, which benefit consumers and the industry alike.”

The proposed legislation amends the Road Traffic Act 1988 and Motor Vehicle (Third Party Risks) Regulations 1972.

BIBA has liaised with broker software houses to ensure their preparedness and will be issuing a technical advice note to members shortly.