Out-Law News 1 min. read
12 Apr 2010, 2:32 pm
The new rules will allow insurers to issue electronic certificates as an alternative to the paper version where the customer has agreed to electronic delivery. The certificate can then be emailed to the insured as an attachment or be made available on a website.
The move, which has been welcomed by insurance groups, is expected the save the industry over £10 million in printing and postage costs. The British Insurance Brokers’ Association (BIBA) estimates that around 40 million hard copy certificates are issued each year.
Graeme Trudgill, Technical and Corporate Affairs Executive at BIBA said: "After five years and discussions with numerous ministers, we are delighted to see these proposed changes in legislation. This really will benefit everyone – a speedier service for clients, a cost saving for the industry and a real benefit for the environment.”
The Motor Vehicles (Electronic Communication of Certificates of Insurance) Order 2010 amends the Road Traffic Act 1988 and the Motor Vehicles (Third Party Risks) Regulations 1972 to allow delivery of the certificate by email or website access.
Where delivery is via a website, the insurer must take reasonable steps to make the certificate continuously accessible to the insured throughout the policy term – including remedying any temporary unavailability.
The insured will also be able to email the insurer to surrender the policy or make a statutory declaration if a policy certificate is lost or destroyed. Where the police require provide evidence of insurance, this can be done by the insured giving them electronic access to the certificate or by providing a legible, printed copy.
