Department for Transport admits there has been no progress on key legislation.
A government logjam could delay the introduction of laws allowing for the electronic delivery of motor certificates until the end of the year.
In an email seen by Insurance Times, a Department for Transport official admitted that while the laws, which would save the insurance industry upwards of £10m a year, were a high priority, there was no progress to report.
Biba said it was aware of serious delays within the ministry, caused by an overloaded legal department. Graeme Trudgill, technical and corporate affairs executive at Biba, said: “There has been no sign of any progress or draft rules. It’s very disappointing. Our members are really eager for this. One member recently called and said this would save them £1m.”
He added: ““This is a relatively simple piece of law. We don’t anticipate any problems they just need to put pen to paper and get the draft rules out.”
The electronic delivery of the motor insurance certificates was announced by road safety minister Jim Fitzpatrick at the ABI’s motor conference in November and it was expected the legislation would be drafted and ready to be implemented by the summer.
Both the ABI and Biba welcomed the proposal, saying it would save time and money for businesses and customers, as well as help the environment. 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 significantly reduce delivery times and create better adherence to FSA contract certainty requirements.
