System targets car insurance fraud

A new system to prevent car insurance fraud has been launched.

Called MyLicence, the system involves a partnership between the Motor Insurers' Bureau (MIB) and the Driver and Vehicle Licensing Agency (DVLA).

The two groups will supply a data-sharing service to the car insurance industry with insurers able to use accurate information about drivers' records to assess risk and prevent fraud at the point of quote or renewal.

It was developed in partnership with the Association of British Insurers (ABI) in response to the Government's Insurance Industry Access to Driver Data programme and the DVLA's ongoing aims to digitalise the data it holds.

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DVLA figures show that up to 23% of motorists fail to accurately disclose their driving record, including disqualifications, 16% of policyholders under-declare convictions and 7% over-declare.

Transport minister Claire Perry said: "MyLicence is good news for motorists and good news for the motor insurance industry.

"This Government is investing in the service which will allow insurers to price much more accurately and should reduce premiums for honest motorists."

MIB chief executive Ashton West said the new system was "sure to be an invaluable tool in the fight against motor insurance fraud".

ABI policy director and deputy director general Huw Evans said: "MyLicence is good news for honest motorists."

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