The Department for Transport has just opened a consultation into the legal requirement for insurance companies to issue certificates.
Under the current law, insurance companies must issue a paper or electronic certificate when agreeing a policy. However, it is proposed to move to a purely online system. It is argued that many organisations, such as the police and vehicle rental companies, already rely on information stored on the Motor Insurer’s Database.
It is believed that drivers could benefit from less motor insurance red tape, in that motorists will no longer be forced to retain certificates as details will be accessible online. It will also remove the requirement for vehicle owners to return their certificates to insurance companies in order to cancel their policy.
If the consultation is successful, then the Department would look to repeal the current law.