Allianz Commercial has found that almost 50% of brokers have no knowledge of the new Continuous Insurance Enforcement (CIE) regulations, which are due to come into force early in 2011.

A survey* of over 900 brokers also revealed that a staggering 87% did not feel supported by their insurance partners regarding the legislation.

Further results include:

• 49.6% did not know their own responsibilities and only 11.7% felt they knew to a large extent
• 66% were not aware of the penalties proposed under the scheme
• 98% had not received any enquiries from their motor insurance clients regarding CIE

Under the scheme, it will be illegal to keep a vehicle without appropriate insurance unless it is declared as off the road. Records held by DVLA will be compared with those on the Motor Insurance Database (MID) to identify uninsured vehicles, so both insurers and brokers will be responsible for providing accurate policy data in a timely manner.

Roger Ball, head of commercial motor and motor trade, Allianz Commercial, says: "These results demonstrate the need for the industry to communicate more effectively about the CIE legislation. Database inaccuracies, both on the MID and DVLA, are likely to be a significant challenge of the scheme, so it is essential that all parties are aware of their own responsibilities.

"Within the motor fleet sector there is a potential issue as certificates of insurance are often issued on a blanket basis, rather than a specific Vehicle Registration Mark. It will be vital to support customers by updating the MID in a timely manner. This will help to avoid the reputational damage caused if an 'insurance advisory letter' is received by one of our customers because their details have been registered incorrectly on the MID."

He adds: "CIE will have huge benefits to the insurance industry as long as it is carried out effectively, so it is vital that commercial insurers play a role in advising their partners ahead of the change. Allianz has been providing guidance to ensure that brokers are fully prepared and will remain committed to supporting the scheme."

*Survey carried out by Allianz Commercial amongst 905 broker contacts.

Click here to download a leaflet by the DVLA to promote the new law and additional information

Return to news and events.