Motor Finance providers have been offered a
free service to prepare them for Continuous Insurance Enforcement
regulations coming into play this spring, as a result of a new
tie-up between the Finance and Leasing Association (FLA) and the
Motor Insurers’ Bureau (MIB).
Lenders will now have access to the MIB’s
vehicle insurance database, allowing them to satisfy themselves
that vehicles have the appropriate insurance cover required by
credit agreements.
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Paul Harrison, the FLA’s Head of Motor
Finance, said: “The partnership between motor lenders and MIB is
well timed because the new Continuous Insurance Enforcement
regulations will require all vehicles to have insurance, even if
they are not being used on the road. By working with the
Bureau, lenders can protect their assets at the same time as
keeping our roads safer.”
The continuous insurance enforcement scheme
will enforce a fixed penalty for people who ignore official
reminders that their vehicle insurance has expired, and will apply
to vehicles that are not declared as being off the road through
SORN (Statutory Off Road Notification) and not insured. Continuing
offenders will risk having their vehicle seized and destroyed.
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By GlobalData
