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Motor Insurance Database

I am grateful to Mr. Speaker for allowing this short debate on the motor insurance database. There can be no doubt that the problem of uninsured driving is significant in the United Kingdom. It is estimated that one in 20 cars on the road is driven without proper insurance, and according to the Motor Insurers Bureau the consequence is to push up insurance premiums for honest motorists by £15 to £20 per person per annum. Since 1946, the bureau, of which all motor insurers are members, has been obliged to pay compensation for injuries caused by uninsured drivers, so the greater the number of uninsured drivers on the road, the greater the cost to the rest of us. Clearly, everything possible should be done to deter uninsured driving, and to punish those who drive without insurance, so section 165A of the Road Traffic Act 1988 was welcome. The measure was introduced into the Act by section 152 of the Serious Organised Crime and Police Act 2005. Under subsection (3)(c), a constable is empowered to seize a motor car if he"““has reasonable grounds for believing that””" it is being driven without insurance. Such a power is eminently desirable, and was generally welcomed by all parties. The motor insurance database, which is maintained by the Motor Insurers Bureau, is key to the implementation of the powers in section 165A. The database was established to enable the UK to achieve compliance with the 4th EU motor insurance directive. That was implemented in January 2003, and required the UK to create an information centre to facilitate easy identification of the valid insurer of any vehicle registered in this country. It can be readily appreciated what a mammoth task it is for the bureau to maintain the database. It stores details on individual insured vehicles, fleets, motor trade and self-insured entities, and currently holds no fewer than 33 million records. Fundamental to the maintenance of the database is the active participation of the motor insurance industry. [Interruption.]