Welcome: Introduction to the MID CBT Course
Welcome to the Motor Insurance Database Computer Based Training (CBT) Course
The course is made up of three core modules and a MID Contacts page, plus a MID Quiz. Please work through the modules and quiz in logical order.
The aim of this course
'To provide you with the knowledge to understand the importance of the Motor Insurance Database Information
System (MID) compliance and the ability to process motor work in line with MID and Norwich Union Genenral
Insurance (NUI) best practice.
Objectives
Having completed the course you will be able to:
- Describe and explain the function of the Motor Insurance Database (MID)
- List the reasons why MID is so important to Customers, Brokers and Insurers
- Identify best practice in terms of meeting MID compliance
- Provide instruction for customers to correctly complete data for MID.
Modules
- What is MID?
- Why is MID so important?
- Best practice guidelines to achieve MID compliance
Contacts
- Useful MID contacts and information
Module 1: What is MID?
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The MID database was created to allow the UK to meet the 4th EU Motor Insurance Directive.
This directive came into effect on 20th January 2003 and requires that details of every insured vehicle be accessible by the Motor Insurers' Information Centre(MIIC).
For more information on the 4th EU Directive, please visit www.miic.org.uk.
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The insurance industry established the Motor Insurers' Information Centre (MIIC) to oversee the development and ongoing management of the Motor Insurance Database (MID).
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Currently there are more than one million uninsured drivers on our roads
This is about 1 in 20 motorists
It has been calculated that accidents caused by uninsured drivers leads to an
additional £30 loading on every honest motorist's insurance premium.
Uninsured driving is costing the insurance industry around £550 million each
year. (As at June 2005)
Module 1: What is MID?
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NUI is working with the insurance industry and the Government to create a viable enforcement system that will give police continuous access to an accurate MID.
You play a key role in making this a success.
NUI see this as a significant element of our Corporate Social Responsibility activity.
A search of the MID can only be conducted using the full Vehicle Registration Mark (VRM).
It is not possible to search on a name, address or policy number or even partial VRM.
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Providing information to the MID equates to good customer service.
The data is used in accidents to identify insurer(s) and encourage a smooth claims process.
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An online tax service is available for vehicles under three years old.
It is quick and easy to use IF the policyholder's details are held on the MID.
For more information on the MID and vehicle re-licencing, please visit
www.miic.org.uk
Module 1: What is MID? - MID Overview
MID Overview
Now we'll look at how information is passed to MID by viewing a diagram detailing the flow of the information between insurers, the MID and the Police.
Module 1: What is MID? - MID Quiz
That completes our look at What is MID?
Now you should be able to:
- Describe and explain the function of the MID
Now it's time to take a short quiz to see what you have learnt.
Click here to launch the Module 1 Quiz
Module 2: Why is MID so important?
Module 2: Why is MID so important?
Objective
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From January 2005 it became a legal requirement for all insurers to update the MID with 95% of all transactions within 14 days of the transaction effective date. Transactions include renewals, new business and policy changes, cancellations or lapses.
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As part of your terms of business, you must provide information to NUI with the timescales detailed, to ensure that NUI meets MID requirements.
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There is also a legal requirement for your customers to provide this data in order to ensure the MID is consistently up to date.
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14 days may seem a long time, but the process is broken down into the following:
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Customer advises broker
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Broker processes advice
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NUI processes advice
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NUI sends data to MID
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MID processes data
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This shows it's not just NUI involved in the update(s), so there is no
room for errors.
NB: The 14 day update period is being reduced to seven days
for personal lines business
- The 14 day period also needs to account for any errors. These follow a
certain process.
Module 2: Why is MID so important? - MID Overview
MID Overview
Now we'll look at how information is passed to MID by viewing a diagram detailing the flow of the information between insurers, the MID and the Police.
Module 2: Why is MID so important?
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Currently the MID receives over 25,000 hits per day from the police and over 200,000 per month from
insurers.
It is in the policyholder's interest to keep their details on the MID accurate and up-to-date.
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If a policyholder is stopped by the police, the MID can be checked to ensure the vehicle is insured.
If the data is not available, the policyholder must produce their documents at a local police station, at a time stipulated by the police.
This could be an inconvenience easily avoided if the MID is fully up to date.
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The compliance level has been set at 95% and failure to meet this will result in failing regulatory requirements. This could lead to:
- Financial penalties for NUI
- NUI could lose their licence to underwrite motor business.
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This is why we have amended our broker's terms of business to include MID
requirements.
It is vital that our brokers play their part in making sure data is transmitted
quickly and efficiently.
NUI may seek to impose special terms on those brokers who persistently fail to
comply with MID requirements
Module 2: Why is MID so important?
That completes our look at Why MID is so important.
Now you should be able to:
- Identify the reasons why the MID is so important to Customers, Brokers and Insurers.
Now it's time to take a short quiz to see what you have learnt and to decide if you need to review this module.
Click here to launch the Module 2 Quiz
Module 3: Best Practice Guidelines to Achieve MID Compliance
Please select your type of business
Module 3: Personal Business
Module 3: Personal Business
Delays in receiving customer and broker advices combined with internal processing delays contribute to NUI failing to meet MID targets.
Examples of delays:
-
New Business (NB)
- Brokers awaiting proposal forms
- Brokers awaiting proof of NCD
- Brokers awaiting additional information (e.g. proof of value or mileage...etc)
- Broker / NUI processing delays
- Renewals (RNL)
- Late lapse notification
- Late notifcation of policy changes effective from renewal
- Broker / NUI processing delays
- Mid Terms Amendments (MTA)
- Policyholder not advising broker
- Agency transfers
- Broker /NUI processing delays
- Supply of inaccurate information
Module 3: Personal Business
So, what do these issues mean?
- Both NUI and Brokers are strugling to comply with MID targets.
- NUI/Brokers Best Practice needs to have MID at its core.
- You need to take responsibility for ensuring MID Best Practice processes are followed in your organisation.
- MID should now form part of your quality checking.
Best Practice Guidelines
- Ensure postal and internal paper processing is fully up to date.
- Ensure policyholders are aware of MID requirements and the need for timely advices.
- Do not wait unnecessarily for documents from the poilicyholder before advising us of any change, new business or renewal advice.
- Check information e.g. vehicle registration mark (VRM) is correct on all documents.
- Ensure documents are sent to the correct NUI location and contact.
- Ensure copy motor covernotes are passed to NUI on the day of issue.
- Lapse instructions should be advised to NUI ideally by renewal date or within five days.
They must not be kept back and sent with account settlement at the month end.
- Use e-trading wherever possible.
- Make use of a phone call wherever possible for MID queries.
Module 3: Personal Business
Cancellation & Lapses
Clients must be advised that NUI are no longer prepared to backdate cancellations by more than five days.
This does not affect the 14 day FSA cooling off period.
VRM Formats
When advising NUI of car registration details you must be careful to check that the format is correct.
The following, is a list of all the correct formats that are currently in legal use in Great Britain.
A9AAA
A99AAA
A999AAA
|
A9
A99
A999
A9999
|
AA9
AA99
AA999
AA9999
|
AAA9
AAA99
AAA999
AAA9999
|
AAA9A
AAA99A
AAA999A
|
9A
9AA
9AAA
|
99A
99AA
99AAA
|
999A
999AA
999AAA
|
9999A
9999AA
|
AA99AAA (1)
AA99AA (2)
99AA99 (2)
999A999 (3)
|
A = alpha, 9 = any numeric
(1) = current GB format from 2001
(2) = military vehicle format
(3) = diplomatic plate format
|
Printable version of the VRM Formats
Module 3: Personal Business
Key Action Points
For NUI to update the MID within the 14 day period, all brokers are required to submit policy information to us ideally within 24 hours* but no later than five calendar days after the effective date of any renewal, new business, cancellation or policy change**.
Personal Lines Business
Where the business is not Full Cycle EDI, you much advise NUI of these changes, ideally within 24 hours and no later than five days.
Renewals
You must advise NUI if the policy has been lapsed or details have changed. This should not be notified via the monthly statement. If the policy is renewed, you do not need to advise us.
* copy cover notes must be submitted within 24 hours of issue
** policy change (vehicle, title, address or named driver details)
Module 3: Personal Business
That completes our look at Best Practice working patterns to help achieve compliance.
Now you should be able to:
- Identify Personal Lines best practice in terms of meeting MID compliance.
Now it's time to take a short quiz to see what you have learnt.
Click here to launch the Module 3 Personal Lines Quiz
Module 3: Commercial Business
Module 3: Commercial Business
Delays in receiving customer and broker advices can be a contributing factor to NUI failing to meet MID targets, as can our own internal processing delays.
Examples of delays
- New Business (NB)
- Broker awaiting proposal form
- NUI / Broker processing errors
- Brokers awaiting supporting documentation (e.g. Risk Management documentation)
- Renewals (RNL)
- Delay in renewal instruction
- Late lapse notification
- Late notification of policy changes effective from renewal
- NUI / Broker processing delays
- Mid Term Amendments (MTA)
- NUI / Broker processing errors
- Policyholder delays
- Supply of incorrect information
- Agency transfers
Module 3: Commercial Business
So, what do these issues mean?
- Both NUI and Brokers are strugling to comply with MID targets.
- NUI/Brokers Best Practice needs to have MID at its core.
- You need to take responsibility for ensuring MID Best Practice processes are followed in your organisation.
- MID should now form part of your quality checking.
Best Practice Guidelines
- Ensure postal and internal paper processing is fully up to date.
- Ensure policyholders are aware of MID requirements and the need for timely advices.
- Do not wait unnecessarily for documents from the poilicyholder before advising us of any change, new business or renewal advice.
- Check information e.g. vehicle registration mark (VRM) is correct on all documents.
- Ensure documents are sent to the correct NUI location and contact.
- Ensure copy motor covernotes are passed to NUI on the day of issue.
- Lapse instructions should be advised to NUI ideally by renewal date or within five days.
They must not be kept back and sent with account settlement at the month end.
- Use e-trading wherever possible.
- Make use of a phone call wherever possible for MID queries.
Module 3: Commercial Business
Cancellations & Lapses
- Clients must be advised that NUI are removing Contractual Cancellation rights (other than the FSA cooling off period for Retail Customers).
- NUI will consider cancelling policies only in the following circumstances:
- The policyholder goes into liquidation, ceases to trade or is declared bankrupt.
- The business is sold, taken over, split up or merged into the parent company's policy.
- Following the total loss of the vehicle insured under single vehicle policies.
- Where cancellation is agreed, NUI are no longer prepared to backdate cancellations for more than five days.
Module 3: Commercial Business
VRM Formats
When advising NUI of car registration details you must be careful to check that the format is correct.
The following, is a list of all the correct formats that are currently in legal use in Great Britain.
A9AAA
A99AAA
A999AAA
|
A9
A99
A999
A9999
|
AA9
AA99
AA999
AA9999
|
AAA9
AAA99
AAA999
AAA9999
|
AAA9A
AAA99A
AAA999A
|
9A
9AA
9AAA
|
99A
99AA
99AAA
|
999A
999AA
999AAA
|
9999A
9999AA
|
AA99AAA (1)
AA99AA (2)
99AA99 (2)
999A999 (3)
|
A = alpha, 9 = any numeric
(1) = current GB format from 2001
(2) = military vehicle format
(3) = diplomatic plate format
|
Printable version of the VRM Formats
Module 3: Commercial Business
Key Action Points
For NUI to update the MID within the 14 day period, all brokers are required to submit policy information to us ideally within 24 hours* but no later than five calendar days after the effective date of any renewal, new business, cancellation or policy change**.
Commercial Business
(Specified Vehicle Fleets, MiniFleet, Truck, Farm Safe, Farm Plus, Taxis and Special Types)
You must advise us of any changes to the policy ideally within 24 hours but no later than five days.
Renewals
You must advise NUI if the renewal is taken up, or if the policy has been lapsed. This should not be notified via your monthly statement, we cannot automatically assume the policy is renewed and need your explicit instructions.
* copy cover notes must be submitted within 24 hours of issue
** policy change (vehicle, title, address or named driver details)
Module 3: Commercial Business
That completes our look at Best Practice working patterns to help achieve compliance.
Now you should be able to:
- Identify Personal Lines best practice in terms of meeting MID requirements.
Now it's time to take a short quiz to see what you have learnt.
Click here to launch the Module 3 Commercial Lines Quiz
Module 3: Motor trade and unspecified vehicle fleets
Module 3: Motor trade and unspecified vehicle fleets
For Motor Trade and Unspecified Vehicle Fleets, NUI does not keep details on vehicles in the policyholder's possession
Vehicle details in respect of Motor Trade and Unspecified Vehicle Fleets, must be maintained on the MID (via internet connection) by the policyholder or their authorised representative.
Policyholder Obligations
The UK Regulations place direct obligations on policyholders. These require the policyholder to:
- Immediately supply the required vehicle detail information for inclusion on the MID
- Retain such information on all vehicles (including those insured for fewer than 15 days which are not required to be sent to the MID) for a period of 7 years.
Non Compliance
Failure to have the necessary information lodged on the MID may result in prosecution and a maximum fine of £5000 per occurrence on the policyholder.
Scope of Vehicles covered
The Directive requires the details of all UK registered vehicles to be logged on the MID. This includes temporary additional vehicles.
However, temporary additional vehicles of less than 15 days need not be notified to the database. Vehicles registered in the Channel Islands or the Isle of Man are exempt from the requirements of the 4th EU Motor Insurance Directive and need not be added to the Database.
Module 3: Motor trade and unspecified vehicle fleets
Data Submission
NUI Responsibility
In all cases NUI send 'policy' level details to the MID e.g. the policyholders name, address, policy number and policy cover dates. This opens an 'account' for the policyholder to provide the associated vehicle details direct to the MID.
Policyholder Responsibility
In order for the policyholder to send their vehicle details to the MID, NUI has to authorize and set up their access to the database. To enable NUI to do this a Security Access Application Form must be completed by the policyholder no later than inception of the policy.
Access and security will be controlled with the use of personal User ID's, passwords and pass-phrases. Passwords expire automatically every thirty days and will have to be reset by the password holder when next logging in. The Norwich Union MID Helpdesk will help with resetting of forgotten passwords and other security / technical issues, as well as with initial accessing of the database for policyholders.
Data Items
The policyholder must provide the following compulsory information to the MID:
- Vehicle Registration Mark (including trade plates)
- Date on which the vehicle was acquired
- Date on which the vehicle was disposed
Module 3: Motor trade and unspecified vehicle fleets
Key Action Points
For NUI to update the MID within the 14 day period, all brokers are required to submit policy information to us ideally within 24 hours * but no later than five calendar days after the effective date of renewal, new business, cancellation or policy change.**
Motor Trade and Unspecified Vehicle Fleets
- You must advise us of changes to the policy ideally within 24 hours but no later than five days.
- Vehicle details in respect of Motor Trade and Unspecified Vehicle Fleets must be made direct to the MID by the policyholder or their authorised representative.
Renewals
You must advise us if the renewal is taken up, or if the policy is to be changed or lapsed. This should not be notified via your monthly statement. We cannot automatically assume the policy is renewed and need your explicit instructions.
* Copy cover notes must be submitted within 24 hour of issue
** Policy change (name, title, address, period of insurance)
Further Information
Further information on Motor Trade and Unspecified Vehicle Fleets can be obtained from:
- Fleet and Motor Trade - How to send your vehicle data (brochure published by NUI)
- Norwich Union MID Helpdesk on 0161 866 4222
Module 3: Motor trade and unspecified vehicle fleets
That completes our look at techniques / information to use in broker discussions.
Now you should be able to:
- Understand specific NUI requirements for Motor Trade and Unspecified Vehicle Fleet policyholders in respect of vehicle data submission to the MID.
- Provide relevant information to policyholders.
Now it's time to take a short quiz to see what you have learnt.
Click here to launch the Module 3 Motor Trade & unspecified vehicle
fleets Quiz
Contacts: Useful MID contacts and information
Related organisations:
Contacting the MIIC:
For general enquiries and queries please contact customer
services on:
Telephone: 08702 416732
E-mail: information@miic.org.uk
E-mail (website issues): issues@miic.org.uk
MID Quiz:
The quiz contains a possible 22 marks over 19 questions and will on average take 20 minutes to complete.
The questions are based on all the information within this course.
Click here to launch the MID Quiz
After entering the CBT quiz, you will have the option to provide us with feedback and thoughts on the MID CBT.
or 
options found on the right to move through the CBT.
