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New insurance law comes into force

Date: 22 June 2011

New rules for vehicle insurance came into force from 20 June, which state that cars must be insured unless they have been issued a Statutory Off Road Notice (SORN).

The Continuous Insurance Enforcement Law means that all vehicles used on business trips must be listed on the Motor Insurance Database, advised car fleet operators' association ACFO. Possible penalties for ignoring the rules include wheel-clamping or court prosecution with a maximum fine of £1000.

ACFO said the law change reinforces the fact that the onus to make sure a vehicle is insured and listed on the MID rests with the policy holder.

Director Stewart Whyte said: "In general fleet operators have a good record for having insurance in place. However, there are some potential traps and an early review - plus ongoing attention - is vital to avoid possible prosecution."

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