Fleets face June insurance deadline

Fleets should ensure their vehicles are insured and listed on the Motor Insurers’ Bureau database or they will receive a letter in June, according to the Government’s new regime to tackle uninsured driving.

Under Continuous Insurance Enforcement it will be an offence to keep an uninsured vehicle, rather than just to drive when uninsured. The regulations, which have been laid before Parliament, will allow the DVLA to take action against those who ignore warnings to get their vehicle insured.

Jaama, which provides technology to a number of contract hire and leasing companies, is currently busy helping them to update their systems.

Historically, organisations have signed a ‘master hire’ agreement with their contract hire and leasing vehicle provider that includes a commitment to insure.

Jaama managing director Jason Francis said: “The offence of keeping a vehicle with no insurance came into force on February 4. However, the Department for Transport has now announced that it is planned for the first insurance advisory letters - which warn individuals that they appear to be uninsured - to be sent at the end of June following a publicity campaign to raise awareness of the Continuous Insurance Enforcement scheme.

“Contract hire and leasing companies can no longer wash their hands of the insurance responsibility when the new legislation comes into place as they will be responsible for ensuring that customers have correctly insured all vehicles.

“When the authorities run checks on vehicles and discover that a leased vehicle is uninsured it will be the contract hire company that is targeted.”