Police will be given access to the motor insurance database to help crack down on uninsured driving.
Under provisions in the new Serious Crime Act (2005) police have the power to confiscate uninsured vehicles and and in some circumstances, destroy vehicles being driven uninsured.
ABI general insurance director Nick Starling said: “We are pleased that the government has seized the opportunity to act on what the industry has been calling for – better detection of and stiffer penalties for illegal and dangerous motorists who drive uninsured.
“It will send out a clear message: driving without insurance is a serious and dangerous crime, which the government, in partnership with the insurance industry and the police, is determined to reduce.”