New proposal gives insurers seven days to update database

Stringent requirements on insurers to update the motor insurers' database (MID) will be relaxed if the government accepts proposals put forward by the insurance industry.

Insurance Times has learned that a consultation document commissioned by the ABI and the Motor Insurers' Information Centre (MIIC) will recommend that insurers be allowed seven days to update the MID.

This would relax the requirements proposed by the Greenaway report of real-time updating by 2008.

The current requirement is 95% compliance within 14 days.

Motor Insurers' Bureau chief executive Ashton West said: "The question is: does one need real-time updating to have systematic enforcement from the record?"

He added: "But the proposal in no way reduces the requirement on insurers to meet the current or future requirements to update the MID."

The police and Professor Greenaway are understood to be sympathetic to the idea of relaxing the requirements, leaving the government to decide whether they will back the change.

The report will also suggest that 100% compliance with updating the MID also be relaxed slightly.

ABI head of motor Justin Jacobs said: "What we want is the maximum possible enforcement within the requirements of what is needed."

Insurers should also find out at the end of March whether requirements for private car and fleet insurance will be the same, or whether fleet business will be given more leeway in compliance with updating the MID.