History of motor insurance

Question 1

What resulted in a wide range of people being able to drive?

Answer 1

Young men learning to drive army vehicles in WW I in 1914-1918.

Question 2

When was hire purchase introduced and what did effect?

Answer 2

WW I (1914-1918). It was easier for people to buy cars.

Question 3

What was passed as a law in 1930?

Answer 3

Road Traffic Act

Question 4

What did the Road Traffic Act (RTA) ensure?

Answer 4

Everyone driving a vehicle had insurance and ensured that drivers would always have the means to provide financial compensation to innocent people. This included passengers.

Question 5

What does RTA mean?

Answer 5

Road Traffic Act

Question 6

When was RTA passed?

Answer 6

1930

Question 7

What happened in 1988?

Answer 7

RTA was revised to not ONLY cover death and injury cause to other people, including passengers but also to cover damage to people’s property.

Question 8

If someone drives a vehicle they don’t own, do they need to be insured?

Answer 8

Yes (RTA 1988)

Question 9

If you take your vehicle to another country how is it covered?

Answer 9

Due to EU directives on motor insurance customers within EU have the minimum cover needed by the law in the country they travel in. (In UK it would be third party only cover)

Question 10

What does MID stand for?

Answer 10

Motor Insurance Database = central records of all insured vehicles

Question 11

How often is MID updated per hour?

Answer 11

10,000 times.

Question 12

What is the MID used for?

Answer 12

To ensure that only insured vehicles are driven on our roads. It is the most important tool!

Question 13

Who uses MID?

Answer 13

The police and the DVLA (Driver and Vehicle Licensing Agency) to enforce motor insurance law.

Question 14

What does DVLA stand for?

Answer 14

Driver and Vehicle Licensing Agency

Question 15

How does the police enforce the insurance law?

Answer 15

They use ANPR (Automatic Number Plate Recognition) technology with information from MID (Motor Insurance Database) to identify and catch people driving uninsured vehicles.

Question 16

What does ANPR stand for?

Answer 16

Automatic Number Plate Recognition

Question 17

How often are vehicles seized for being uninsured?

Answer 17

500 per day and one person every three minutes is convicted for uninsured driving

Question 18

How do MID and DVLA work together?

Answer 18

The MID is systematically compared with the DVLA’s registered keeper records to identify uninsured vehicles from record.

Question 19

Can I access the MID to check my vehicle details?

Answer 19

Yes and for free at www.askmid.com

Question 20

What does CIE stand for?

Answer 20

Continuous Insurance Enforcement

Question 21

As part of ____, it is now a legal requirement for registered vehicle keepers to insure their vehicle(s) at all times?

Answer 21

CIE, Continuous Insurance Enforcement

Question 22

Do you have to be driving to be caught with an uninsured vehicle?

Answer 22

No

Question 23

What do you need to do if you have an uninsured vehicle that is being kept off-road?

Answer 23

Notify DVLA and Statutory Off-Road Notification (SORN)

Question 24

What does SORN stand for?

Answer 24

Statutory Off-Road Notification

Question 25

If you have an uninsured vehicle that is being kept off-road and you don’t have SORN, what happens?

Answer 25

It is an offence and you will be sent an Insurance Advisory Letter (IAL) telling you that your vehicle appears uninsured and warning that you will be fines unless you take action.

Question 26

What does IAL stand for?

Answer 26

Insurance Advisory Letter

Question 27

What happens if you don’t take action after an IAL?

Answer 27

If you fail to comply with the advice set out in the Insurance Advisory Letter (IAL), you will

1) Get a fixed penalty notice of £100
2) Your vehicle will be clamped, seized and disposed of
3) Court will prosecute you and fine you up to £1000

Question 28

What is the highest fine you can get for not having SORN and notified DVLA of an uninsured vehicle?

Answer 28

£1000

Question 29

What does MIB stand for?

Answer 29

Motor Insurers’ Bureau

Question 30

What does MIB do?

Answer 30

Motor Insurers’ Bureau and DVLA work together to identify uninsured vehicles by comparing DVLA vehicle records against those held on the MID (Motor Insurance Database)

Question 31

What is the road fund license?

Answer 31

A government imposed tax.

Question 32

What do you need for the road fund license?

Answer 32

To pay your license you need to have a valid insurance policy and a valid MOT (if your vehicle is 3+ years old)

Question 33

When do you need SORN?

Answer 33

If your car is going to be off the road and you don’t want to insure or tax it.

Question 34

When and why was MIB established?

Answer 34

Motor Insurance Bureau was established to compensate the victims of negligent uninsured and untraced motorists.

Question 35

How can the MIB compensate the victims of negligent uninsured and untraced motorists?

Answer 35

Every insurer underwriting compulsory motor insurance is obliged by virtue of the RTA (Road Traffic Act 1988) to be a member of MIB and contribute to its funding.

Question 36

When was the first 2 seat motor car introduced?

Answer 36

1894

Question 37

When did motoring become more affordable and not just a rich mans hobby?

Answer 37

After WW I

Question 38

When and where did many young men learn to drive?

Answer 38

The army in early 1900s

Question 39

Why was RTA introduced in 1930?

Answer 39

To make it compulsory for drivers to have insurance

Question 40

What was included in the RTA 1988 as compulsory cover all drivers must have?

Answer 40

Damage to third parties property

Question 41

What international body has made additional rulings to increase compulsory cover to include European countries

Answer 41

European Union

Question 42

What does D in MID stand for?

Answer 42

Database

Question 43

When would a customer receive an Insurance Advisory Letter?

Answer 43

When they have an uninsured vehicle