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AA Pushing For Electronic Car Insurance Certificates By April 2010

Thu, 26 Nov 2009

AA Insurance has warmly welcomed the Government's response to its call for fast action to allow insurers to issue electronic car insurance certificates.  Transport Minister Paul Clark MP announced at the ABI motor conference in London on Tuesday (24th November 2009) that the necessary legislation was being rushed through.

As the likelihood of a postal strike loomed last month, AA Insurance expressed concern that many customers could find it difficult to tax their cars if certificates were delayed in the post.  The insurance industry has been calling for electronic certificates for some years and the Government announced proposals to introduce them over two years ago.

However, Mr Clark told the ABI conference that secondary legislation is being used and has already been drafted to make necessary changes to allow electronic insurance certificates to be issued from April 2010.

Simon Douglas, director of AA Insurance, hailed the decision as sound common sense.

"There has been a lengthy consultation period but solutions have been found to most of the security difficulties involved.  In fact, the certificate is simply tangible evidence that the Motor Insurance Database has been updated and in most cases, police can confirm that a car is insured and tax discs can be applied for without the
certificate," he says.  

"However, there are still many occasions when a paper certificate must be produced, for example, when buying a new car or taxing your car at a Post Office, and it's an anachronism that in today's electronic world the certificate can only be delivered to a customer by post."   

Douglas added that the AA has the necessary technology in place to issue electronic certificates.  "This is one of the most common questions asked by customers and they are rightly mystified by the fact that they can only receive the certificate via an increasingly uncertain postal system."

The AA continues to work with the Department for Transport on the detail surrounding delivery of the project.

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