The new government initiative to have all the driving records put online may be good news for the insurance industry players. This is because it may push down the insurance premiums for vehicles by £15 a year.
The project dubbed, My-License project will certainly be a welcome move by motorists and insurers. The project will open the DVLA database. As such, it will be much easier to monitor driving offences and convictions. Motor insurers, brokers and other stakeholders will find it easier to get and compare information necessary while transacting the insurance business.
Mr. Francis Maude, cabinet officer, indicated that drivers seeking an insurance cover will be required to provide their driving license to their specific insurers so that they can verify their risk position before quoting corresponding premiums. He reiterated the importance of having an online driving database, which can be used by the insurance industry players.
According to the British association of insurers, this move will greatly save drivers who are honest about their driving history and who always be treated unfairly due to lack of data and information concerning them. It will also reduce the turnaround time for the insurers as they will ask fewer questions and speed up the process of taking an insurance cover.
The initiative has been put together jointly by the DVLA, the transport department and the insurance industry players like ABI and MIB (Motor insurers bureau).
Others who have echoed support for the initiative are the AVIVA spokesman who said it will benefit the underwriting processes as well fraud reduction. Actuaries led by the Barnett Waddingham partner Mr. Cherry Chan have voiced their support for the same saying that having the right information will ensure fairness for the policyholders and hence each person will be paying a premium commensurate with their risk profile.
Therefore, drivers charged with speeding should pay the price by paying higher premiums on their insurance policies as opposed to those with zero or few convictions. At the moment, 40 year old males that have about three points on their licenses as a result of speeding are likely be paying considerably lower premiums than those with no points! The latest move will reverse this.