Moves to allow motor insurance certificates to be emailed to customers would save brokers £11m, according to Biba.

The trade body said the proposals, put forward by the Department for Transport (DfT), would make a huge difference to the motor insurance market.

Currently the law requires these certificates to be sent by insurers to policyholders by post.

In addition to the cost savings, Biba said electronic delivery would also have a positive impact on consumers, significantly reducing delivery times and creating better adherence to FSA contract certainty requirements.

Biba also said the move would have a positive effect on the environment. “It would dramatically reduce the need for packing materials, and would require consumers to print off a copy only when necessary,” Biba said in its response to the government’s consultation.

Graeme Trudgill, Biba technical services manager said: “In its consultation document, the DfT states that it is keen to ‘encourage developments in technology which bring benefits’ and we believe this is essential.

“The insurance industry has been forced to stay in the dark ages for too long, and we are eager to start providing up-to-date services to our customers.

“We believe that allowing the insurance industry to issue electronic motor insurance certificates would have a positive effect for consumers, the industry and the environment.”

The ABI has also welcomed the proposals, saying they would help insurers provide a faster, more cost-effective service to their customers.”

The government’s consultation closed on 18 June.