DVLA Database To Reduce Car Insurance Fraud

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DVLA Database To Reduce Car Insurance Fraud

July 3, 2012

A new project to help car insurance firms access correct, up-to-date information regarding driving offences is expected to reduce fraud in the industry.

The project set to come into effect by 2014 has been launched by the DVLA to give insurers access to information such as driving offences - including disqualifications and points on licences.

The primary goal of the scheme is the reduce car insurance fraud - potentially reducing premiums for honest drivers.

According to research 23% of motorists do not give their insurers accurate information about their driving history.

Nick Starling, Director of General Insurance at the Association of British Insurers stated that almost a quarter of motorists with driving offences and disqualifications do not declare them. As a result this pushes up the cost of premiums for honest drivers.

Under the new system, drivers will need to include their driving licence number when apply for car insurance.

This information can then be checked against the DVLA's database.

Mr Starling went on to say:

"Being able to access to the DVLA database will not only root out fraud, but also make the process of applying for insurance faster, produce more accurate premiums, and reduce disputes in the event of claims".

Source: http://www.insurancetimes.co.uk/insurers-to-access-dvla-database-for-driving-offences/1397345.article