Electronic Motor Insurance Certificates Given Go Ahead

by Katy Murcutt - Paralegal

12 April 2010, filed under Motoring

From Friday 30th April 2010, motoring will be updated as drivers will be able to receive their motor insurance certificates electronically rather than in the traditional paper format through the post.

The industry is expected to save more than £10 million in printing and postage costs when the new law comes into force. More than 40 million paper insurance certificates are issued every year according to the British Insurance Brokers Association (BIBA).

The Motor Vehicles (Electronic Communication of Certificates of Insurance) Order 2010 shall amend the Road Traffic Act 1988 and Motor Vehicles (Third Party Risks) Regulations 1972 in order to permit the use of electronic certificates to render the electronic insurance certificates legally effective.

It shall be the duty of the insurance company to make sure all reasonable steps have been taken to enable the successful delivery of the motor insurance certificate from the insurance company to the motorist. Furthermore, where the certificate is accessible via the insurer’s website and not directly sent to the customer’s email inbox, it will be the responsibility of the insurer to provide access to the policy holder’s insurance certificate and accompanying documentation throughout the duration of the policy.

The electronic certificates will be used where the customer has agreed to this, otherwise paper certificates will continue to be sent for the time being.

The new rules have been in discussion by ministers for over five years, but with the impact of the recession, concerns for the environment and complaints on the speed of service by consumers, ministers agreed to the proposals made by BIBA in a bid to move the insurance industry forward.