Half of brokers unaware of CIE regulations

A survey has revealed that almost 50% of brokers have no knowledge of the new Continuous Insurance Enforcement (CIE) regulations, which are due to come into force early in 2011.

In the Allianz Commercial survey of over 900 brokers, it also revealed that 87% did not feel supported by their insurance partners regarding the legislation.

Further results include:

• 49.6% did not know their own responsibilities and only 11.7% felt they knew to a large extent
• 66% were not aware of the penalties proposed under the scheme
• 98% had not received any enquiries from their motor insurance clients regarding CIE

Under the scheme, it will be illegal to keep a vehicle without appropriate insurance unless it is declared as off the road.

Records held by DVLA will be compared with those on the Motor Insurance Database (MID) to identify uninsured vehicles, so both insurers and brokers will be responsible for providing accurate policy data in a timely manner.

Roger Ball, head of commercial motor and motor trade, Allianz Commercial, says: “These results demonstrate the need for the industry to communicate more effectively about the CIE legislation. Database inaccuracies, both on the MID and DVLA, are likely to be a significant challenge of the scheme, so it is essential that all parties are aware of their own responsibilities.

“Within the motor fleet sector there is a potential issue as certificates of insurance are often issued on a blanket basis, rather than a specific Vehicle Registration Mark. It will be vital to support customers by updating the MID in a timely manner. This will help to avoid the reputational damage caused if an 'insurance advisory letter' is received by one of our customers because their details have been registered incorrectly on the MID.”