Motor traders and the Motor Insurers' Information Centre (MIIC) have reached a compromise on the registration of traders on the motor insurance database .

This will be in time to contribute to the European Union's 4th Motor Insurance Directive consultation.

It is the MIIC's duty to ensure as many vehicles as possible are put on the database.

But this has presented a logistical nightmare, with an estimated seven million motor trade vehicles eligible for registration.

The MIIC set up the Motor Trade Working Group to develop recommendations to overcome the problem.

It was agreed that only courtesy cars would be registered

The MIIC will submit the recommendations to the European Union for consideration, with the rest of its response to the document.

The 4th Directive was designed to improve the handling of claims that occur in member states where the driver is not a national.

It is due to come into effect in January 2003.

MIIC business program manager Penny Coombs said this was the final stage in the UK's implementation of the Directive.

The recommendations can be seen on .