Police seize cars after insurer blunders

Police wrongfully impounded 236 cars in London last year after blunders with the Motor Insurance Database (MID).

After a motor policy is sold, insurers have seven days to update the Motor Insurance Database (MID).

But in some cases insurers failed to update the database leading to cars being seized by police once the seven day period had elapsed, BBC’s Watchdog reported.

One victim, Stephen Farndon, who had his car seized by police while travelling with his young family, described the seizure as “legalised theft.” He said: “I don’t think the MID or police are to blame. It’s the Department of Transport because they make the rules.”

In other cases, operational failures somewhere within the system led to cars being seized during the seven day period.

Neil Drane, head of MID services said: “In our view, in light of the cases highlighted, it would be our members who failed to get the information onto the database."

The Association of British Insurer's, Nick Starling, said: “I think its important to stress the Motor Insurance Database delivers huge public benefits in keeping uninsured drivers off the road.”

But when pressed he agreed: “It is up to our members to put this information on the database and one mistake is a mistake too many. But the number is very small in the context of the very large numbers that are on the database.”

Starling said that delays in updating the system are due to the policy not being purchased electronically, supply chain issues and policy details needing to be checked.

Drane agreed: "Regrettably not every record is going to be there in accordance with the 7 day time frame but we are always striving with our members to improve it."

Drane said there is an MID roadside helpline available to police Monday through Saturday to check policy details and 50% of cases are confirmed on the spot. It receives around 500 calls each day.

Judgements on unconfirmed vehicles are left for police judgement who may either seize the vehicle or request a valid insuracne policy be presented to police within a reasonable time.