Allianz Commercial reminds industry of uninsured vehicle crackdown

Allianz Commercial is reminding the insurance industry of the forthcoming amendment to motor trade certificates

which will prohibit their use in the recovery of uninsured vehicles seized by the police.

To combat uninsured driving, the police have been given powers to seize and destroy vehicles being driven without adequate insurance arrangements.

However, there is now evidence to suggest that motor trade insurance policies are being used to recover these vehicles.

As of November 1, 2008 it has been agreed that the following additional line will be added to the 'limitations as to use' section of the motor trade certificate of motor insurance: 'Excluding use to secure the release of any motor vehicle which has been seized by or on behalf of any government or public authority which was not the property of the policyholder or in his custody or control at the time of seizure.' Mark Ashwood, motor trade manager, Allianz Commercial, said: "Uninsured drivers cost the industry an estimated andpound;380m each year.

Allianz Commercial has been part of discussions led by the ABI to achieve an industry-wide consensus to prevent this abuse".

" The new wording is intended to be a clarification of the extent of the cover provided and prevent the certificate being used incorrectly to recover uninsured vehicles.".

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