Article date: 14 December 2004
Norwich Union is making changes to its motorinsurance policies to meet the new Motor Insurers’ Database(MID) targets.
From January, 95% of motor insurance recordsmust be submitted to the MID within 14 days of any change to themotor policy, whether it be renewal, new business or mid-termchange. This is aimed at addressing the growing problem ofuninsured driving and to help insurers comply with the4th EU Motor Directive, which requires that theregistration plate for every insured vehicle must be logged on acentralised national database.
Among the changes being introduced in 2005 tomotor polices issued by the UK’s largest general insurerare:
- The removal of the 14 days intention to renew period (days ofgrace) in which a policyholder has the opportunity to renew theirinsurance after the renewal date has passed. This will bringbusiness sold through the intermediary channel into line withbusiness sold through our direct operation.
- Introduction of a five-day autolapse – this means thatmotor policies will be lapsed automatically if Norwich Union isnot made aware of the renewal within five days following therenewal date.
All intermediaries should ensure that relevantinformation is sent to the insurer within five days of theeffective date of transaction and that all the information iscomplete, accurate and sent to the right location.
Ken Wallace, intermediary business director atNorwich Union, said: "The MID target for January 2005 is that 95%of records must be submitted to them within 14 days of any changeto the motor policy, whether it be renewal, new business ormid-term change.
"Norwich Union is ahead of the current MIDstandard to ensure 75% of motor insurance records are submitted tothe MID within 14 days of any effective date of change, and withthe help of brokers, we are confident these new measures will meanwe will meet the new targets in January."
Jenny Chapman at Norwich Union on 01603 682264/07800 699668.
Notes to editors
Norwich Union Insurance
- Norwich Union is the UK's largest insurer with a market shareof around 14 per cent
- With a focus on insurance for individuals and smallbusinesses, Norwich Union insures:
- one in five households
- one in seven motor vehicles
- more than 800,000 businesses
- Norwich Union products are available through a variety ofdistribution channels including brokers, corporate partners suchas banks and building societies and Norwich Union Direct.
- Norwich Union’s news releases and a selection of imagesare available on the Aviva internet press centre at www.aviva.com/media.
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