UP to a third of UK fleets are risking prosecution for failing to comply with major new European legislation on insurance, a new report has revealed.

Thousands of fleet decision-makers are unaware they have to submit details of all vehicles covered by their insurance by next year as part of the new Fourth EU Motor Insurance Directive.

The database already holds details of over 26 million individually insured vehicles, and has been praised by police as a useful tool in combating uninsured driving.

The addition of more than four million fleet and motor trade vehicles can only improve this service, organisers claim, as well as improving the cross border claims process within Europe, the key objective of the Fourth Directive.

Companies need to comply in time for a deadline of January 30 next year, but research by the Motor Insurers' Information Centre (MIIC), which is working to compile the database, shows almost one in four fleets is currently unaware of the legislation.

The survey covered 278 fleets, ranging in size from fewer than 25 vehicles to more than 1,000. While 25% of companies are completely unaware of the Directive, 33% of the fleet decision-makers who are aware of the directive did not know that they need to submit details of vehicles covered by their insurance policies by the January deadline in order to comply, despite the threat of prosecution.

However, the MIIC said it was encouraged to see that 36% of fleets claimed they were ready to supply data immediately, although 34% of these said they still needed to find out what they had to do. Just three companies said they would not be taking any action.

Donald Martin, MIIC programme manager, said: 'It is now vitally important that policyholders and traders get in touch with their insurers to find out exactly what they need to do next.

'If someone does not supply information, they will be in breach of legislation and if they ignore attempts to get them to provide vehicle details, then it will be passed to the Crown Prosecution Service.

'The response so far has been positive and some fleet decision-makers say it will help them manage their fleets better, but there are many companies that still need to react. With legislation pending, doing nothing is no longer an option.'

  • For more information go to www.miic.org.uk.