When supplying large fleets, typically daily rental companies for example, motor manufacturers often pre-register a large number of vehicles ahead of delivery. Under the new rules that will expose the rental companies to the risk of a fine, which the manufacturer would then have to cover.

He said: “We found that our own insurers wouldn’t let us put the vehicles on the MID and rental companies couldn’t put them on until they had taken delivery of them. Technically a CIE offence would have been committed. However, we have now found a company that has written a new policy for Hyundai to cover this eventuality, but it is costing £12 per vehicle for six months cover to comply with the law."

The introduction of CIE represents a further administration process that the fleet industry must face up to and comes on top of a host of other similar issues relating to law changes and fines management in recent years such as the London congestion charge, illegal bus lane use, speeding and parking tickets.

Gilbert concluded: “The whole fines issue is much more complex than it was 10 years ago. We now have five people dedicated to dealing with fines in our fleet administration team. We are not expecting a deluge of CIE ‘advisory letters’ but we won’t know for sure until notifications start to be sent out.”

Sutherland added: “Everyone has had plenty of prior warning about the new system, so we hope that fines will be few and far between. Alphabet’s approach will be to pass-on information to customers to help them comply, while doing all we can to minimise its impact on their fleets.”

• A ‘Fleets and the MID’ leaflet is available.

What happens if a vehicle is not on the Motor Insurance Database (free checks can be made at www.askmid.com)

• Uninsured vehicles will be identified by comparison of the DVLA Vehicle Database with the Motor Insurance Database (MID)
• The Motor Insurers’ Bureau will send advisory letters to all keepers whose vehicles are taxed, but uninsured. Letters will tell keepers what they need to do to avoid enforcement action
• DVLA will carry out enforcement activities - issuing Fixed Penalty Notices and other enforcement activities such as court prosecutions and wheel clamping
• A failure to act on the letter and ensure a vehicle is listed on the MID will result in a £100 fine (leasing companies will recharge the fine to customers and add on an administration fee likely to be between £15 and £35).
• If the vehicle remains uninsured - regardless of whether the fine is paid - it could then be clamped, seized and destroyed.
• The vehicle will only be released when the keeper provides evidence that it is insured.
• If a fine is not paid a subsequent court case could result in a fine of up to £1,000.
• Registered keepers will only avoid receiving an advisory letter and possible fine if a vehicle has been declared ‘off the road’ (Statutory Off Road Notification - SORN) with the DVLA.