Since then a major customer communications campaign has been launched and a second audit in April revealed virtually 100% compliance with CIE legislation.

Many companies have worked with customers to alert them to the law change and the importance of having in place a robust insurance administration process that ensures all vehicles are MID registered.

While the majority of major leased or outright purchase fleets are run by dedicated fleet managers many organisations, particularly SMEs, do not employ professional fleet staff and maybe unaware of the new legislation.

Gilbert said: “We have advised our customers to set up a process that sees a designated person being responsible for ensuring that every vehicle is correctly registered with the MID. That process should start when fleets receive a schedule of vehicles based on delivery dates.

“We would advise all organisations to have in place robust internal processes both in relation to registering new vehicles and defleeting vehicles.”

While the authorities have no idea how big a problem CIE will be for the fleet industry - that will not be known until the first ‘advisory letters’ are issued and 80,000 are estimated to be posted each month - it nevertheless presents a further administration burden across the industry: outright purchase and leased fleets, contract hire and leasing companies, rental firms and motor manufacturers.

Fleet consultant and ACFO director Stewart Whyte believes "all normal fleets which have in place any kind of fleet policy will have vehicles insured".

However, he said: “The law change increases the administrative burden for fleets and means managers have an additional responsibility to check that all vehicles are recorded on MID outside of the nominal 14-day grace period and that should include long-term hire vehicles and demonstrators.

“Fleet managers need to ensure that they have in place a robust MID checking and auditing process to meet the requirements of CIE as it is they who will potentially carry the can. It is all part of good fleet management.”

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