Jones Calls for Caution Over Insurance Database
12 July 2007
Westminster
Clwyd West MP, David Jones, has called for “common sense and discretion” on the part of the police when relying on the Motor Insurance Database (MID). He has also called for motorists to be compensated for losses sustained when insurance companies do not do what is required to keep the MID as accurate as possible.
Speaking yesterday in an adjournment debate, David Jones said that he had called the debate as a consequence of the experience of his constituent, Mrs Maureen Smith, of Rhos-on-Sea, whose car had been seized by North Wales Police when driven by her daughter, Mrs Helen Parry. The database, which had been consulted by the police when checking Mrs Smith’s car, indicated that Mrs Parry was not insured to drive it, when she was in fact properly insured under the terms of her own policy with Direct Line.
David Jones said that, although the database was a useful tool to help the police in their efforts to put uninsured drivers off the road, it should not be regarded as infallible.
He said:
“Police officers should be told of the need to use it with discretion and common sense. There should, further, be uniformity in such guidance. In an answer to a parliamentary question, I was surprised to learn that, at present, the issue is left to individual forces as an operational matter. If police officers do not use discretion, injustices of the sort experienced by Mrs. Smith, Mrs. Parry, and, I have no doubt, many others will continue to occur.”
David Jones also called for motorists whose cars were seized as a result of inaccurate information supplied by insurance companies to be compensated.
He said:
“Penalties do exist for failing to provide the information, but such penalties should be imposed far more vigorously to ensure that insurers comply with their reporting obligations. Further, although penalties exist for failing to provide the information, or for recklessly providing inaccurate information, penalties do not exist for providing inaccurate information negligently.
“I suggest that insurance companies that do not do what is necessary to help to maintain as accurate a database as possible by providing accurate information in a timely manner should be obliged to compensate motorists for losses incurred when a vehicle is seized as a consequence.”
Replying to the debate, Rosie Winterton MP, Minister of State at the Department of Transport, said:
“The hon. Gentleman’s suggestion that insurers should pay the costs of incorrect seizure is interesting, although its practicability would need to be assessed. We can all agree that there is every reason to encourage the insurance industry to get it right. With that in mind, I intend to write to the insurance industry about improving the submission of data to the database so as to minimise the type of problem that he mentioned and to ensure proper compliance in future. I will pass on his suggestions, ask officials to explore them with the insurance industry and reply to him with the results.”
Speaking after the debate, David Jones said:
“Everyone recognises that uninsured drivers should be put off the road and that the MID is an important element in the effort to do so. However, inaccuracies do arise, and when they do, innocent motorists sometimes suffer.
“I hope that the debate will act as a reminder to the insurance industry that there is more it could do to get things right.”
ENDS
Note to Editors:
The Hansard transcript of the debate may be found at:
http://www.publications.parliament.uk/pa/cm200607/cmhansrd/cm070711/halltext/70711h0004.htm#07071179000005
03 September 2010