MIIC sets 90-day deadline for insurers to update driver details or face £250,000 fine
The Motor Insurers' Information Centre (MIIC) has given insurers 90 days to hit target on updating the Motor Insurers' Database (MID) or face fines of up to £250,000.
The organisation will start the four-stage sanction process with warning letters to chief executives of insurance companies who are failing to hit 95% compliance on updating the database within 14 days. The letters are going out this week.
MIIC head Neil Drane said: "What we are asking for is a plan from insurers on what they will do to become compliant."
The letters will also ask insurers what impact those plans will have on their current performance and for a timeframe for the completion of those plans.
The first-stage fines insurers face range from £1,000 to £250,000 or 1% of their MIB levy, whichever is less.
Second-stage fines will double this amount. The third stage of sanctions would be to effectively withdraw an insurer's licence to sell motor insurance.
Drane said the MIIC would withhold the right to curtail the process if it thought a particular insurer's plans were unrealistic or if it seemed impossible for that insurer to hit target.