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Motor Insurance Database

I congratulate the hon. Member for Clwyd, West (Mr. Jones) on securing this important debate. He has reflected very well the experiences of his constituents, who obviously suffered some distress. It would be helpful if I first said a little more about the motor insurance database. As the hon. Gentleman said, it was established by the insurance industry in 2001 as a way of trying to tackle some of the problems of motor insurance evasion. Like me, he knows that our constituents are very worried about the issue. We receive numerous complaints from people who think that in their street, there is a vehicle that is not insured. The issue causes a great deal of anxiety, and it is good that a system exists to try to tackle it. Until the end of 2002, the data on the database were provided on a voluntary basis by the industry, but in 2003 the Government approved the Motor Insurers Bureau as the motor insurance information centre required by the European motor insurance directives. The role has been strengthened, because following on from that, it has become a statutory requirement for all insurers to provide the MIB with details of all motor insurance policies issued, together with details of all vehicles covered by such policies. There is also a legal obligation on policyholders to provide the requisite information. The database is owned and operated by the MIB, which in turn is owned by the insurance industry. Apart from operating the motor insurance database, the MIB’s other activities include processing claims from the innocent victims of uninsured drivers and untraced—hit and run—drivers, under agreements with the Secretary of State. The bureau also acts as the UK green card bureau, dealing with claims from accidents caused by foreign motorists visiting the UK. The main uses of the database are, first, to provide to a person injured as a result of an accident with a motor vehicle, details of the insurance company involved; and, secondly, to provide information to the police for enforcement purposes to tackle the significant social problem of uninsured driving. The hon. Gentleman set out clearly the bad experiences of his constituents, which resulted from incorrect data supplied to the police by an insurer. The problem also occurred as a result of the insurer failing to update correctly the motor insurance database. Such incidents are distressing, and it is right that we and the industry do everything we can to minimise the likelihood of their occurrence. The provision of data to the MID is the responsibility of the insurance industry, but it has made substantial efforts to ensure that the database is fit for purpose. It is also true that the insurance industry is exceeding our current data submission requirements by delivering 97.5 per cent. of data within 14 days. Almost 99 per cent. of all new records are on the database within 14 days, and 94.8 per cent. of all appropriate records are now placed on the database within seven days. It is ahead of our expectations to meet the target of 95 per cent. by January next year. The hon. Gentleman is right that we should be concerned about the accuracy of the database, and ensure that it is fit for purpose. Fit for purpose includes accuracy and timeliness, of course, but we must also consider its effectiveness in tackling known problems, and the effectiveness of the safeguards that are built in to ensure that, as far as possible, experiences such as those of Mrs. Parry and the other people whom the hon. Gentleman mentioned are kept to a minimum or, we hope, completely avoided. If we consider the figures, it is worth remembering that the police make some 3 million inquiries per month on the database, which is more than one per second, and that more than 1,500 vehicles per week are seized for being used without insurance. The number of vehicles wrongly identified as uninsured is not known, but the police have assured us that such instances are rare, and fewer than a handful of cases have been brought to the attention of the Home Office or the Department for Transport since June 2005. Our view that police seizure powers and their use of the MID are working well is strongly supported by the drop in the number of claims made to the MIB by the innocent victims of uninsured drivers. As the hon. Gentleman said, the database and the system are fulfilling their key aim. In 2006, the number of claims dropped by 4.2 per cent., and so far this year, uninsured driving claims have similarly decreased. I am sure that he welcomes that. The database is also an integral part of the checking process for motorists wishing to use the Driver and Vehicle Licensing Agency’s electronic vehicle licensing system, which depends critically on the MID. The system has made a difference for the 9.5 million motorists who have successfully used it. Our evidence so far suggests that the information provided by the MID is very good. For the police, it is proving extremely valuable in tackling the problem of uninsured driving. As for safeguards, the police have every interest in not seizing vehicles incorrectly. Not only is it a waste of their time, but it incurs storage costs and creates bad public relations. We must accept that the police will do their best not to cause motorists unnecessary distress. The MIB helpline provides a quick way to obtain insurance information, but checks can still be made directly with insurers. The MIB also uses a system to audit individual insurers’ update performance and seeks to enforce increasingly tight standards. I think that the hon. Gentleman recognises that it will probably not be possible to avoid every single incident. We must be realistic in acknowledging that. We should also recognise that such unfortunate incidents should not detract from the MID’s general assistance to the police in detecting uninsured drives. It is always regrettable when a vehicle is seized in error, and I recognise the distress and inconvenience that it can cause, but we have one of the highest rates in Europe of uninsured driving. Seizing 1,500 vehicles a week sends an important message that people must be insured. Despite all that, he raised some important points, and I do not want him to think that the Government are in any way complacent about them.