gearing up to go live in 2014
MyLicence initiative aims to provide faster quotes, fairer premiums and fight
fraud for motor insurance. The strapline is "the smarter way to insure
using your driving licence number". Using the DLN the insurer will be able
to access information from the DVLA on
the type of licence an applicant for motor insurance holds, how long they have
held it and whether they have any driving convictions. Normally
an applicant for insurance would disclose that information but under the initiative
the data can be obtained from the DVLA.
Rebranding as MyLicence
Insurance Industry Access to Driver Database (IIADD)
programme has been rebranded MyLicence
The IIADD programme is a joint
initiative of the DVLA, the Department for Transport and the insurance industry,
represented by the Association of British Insurers (ABI) and the Motor Insurers
Bureau (MIB). Insurance brokers, insurance comparison websites and other industry
bodies have also
been involved. The process will direct enquiries through an
industry "hub" which will be operated by the MIB.
contracts of insurance are "contracts of the utmost good faith" a policyholder
should make a full disclosure of all material facts that might have a bearing
on the insurer's willingness to take the risk, any conditions they might require
and of course the amount of their premium. A policyholder may be exposed to the
risk that should they make a claim
and a claims inspector discovers a failure on the part of the policyholder to
have disclosed a material fact, then the insurer may decide not to pay the claim.
The insurance industry is working with the DVLA on
the MyLicence initiative that will save honest motorists an average of £15
on the cost of their car insurance. From 2014, customers searching for car insurance
quotes may be asked by insurers if they are content to provide their Driving Licence
Number (DLN) a unique 16 character sequence displayed on the driving licence.
Insurers will be advising applicants that their DLN will be used to get information
from the DVLA on the type of licence they hold, how long they have held it and
whether they have any driving convictions.
Using data provided by the
DVLA will remove the opportunity for customers to make mistakes when declaring
information about their driving history. Currently, 23% of the data provided
insurance applicants to insurers at point of quote is incorrect -16% of policy
holders underdeclare details like convictions, some by mistake, others deliberately
in order to pay a lower premium. Underdeclaring motoring convictions adds about
£15 per policy to the cost of insurance for those motorists who declare
their driver data accurately while 7% overdeclare. In fact, one in 14 motorists
mistakenly tells their insurer about motoring convictions that have expired, meaning
they are in fact paying too much for their insurance. These customers will also
benefit from lower premiums as a result of this initiative. By providing their
DLN on request they will benefit from more accurate underwriting which will ultimately
deliver fairer premiums whilst tackling the fraud element at the same time.
As well as saving honest customers money, this initiative will mean that
insurers will need to ask customers fewer questions when they apply for cover,
speeding up the purchasing process for everyone seeking motor insurance cover.|
facts about the MyLicence initiative
You will not be obliged to provide
your DLN. Customers who choose not to do so will have to self declare their
driver data in the same way as they do today. However, customers who go down this
route may find that some insurers will choose not to offer cover or charge a higher
premium because of the higher fraud risk they present.
To get the most
benefit from this initiative, you will be asked to provide the DLNs of all
drivers to be covered by the policy, not just the DLN of the policyholder.
The policyholder must seek the agreement from any named drivers for their data
to be processed in this way. The DVLA only holds information on motorists with
a British driving licence. Non-GB licence holders will still have to self declare
their driver data.
Insurers will not share the data that the DVLA provides
about you or other named drivers on your policy with any third parties. They
will also not share the data that the DVLA has provided with any of the drivers
on the policy and the applicant will not be able to see the DVLA data on any of
the named drivers on your policy, and they will not be able to see any DVLA data
What will access to the DVLA driver licence data provide for
MyLicence initiative will allow insurers to get accurate data from the DVLA on
driving entitlements, convictions and penalty points when they are providing quotes
for motor insurance policies. The initiative will work by drivers providing their
driving licence number (DLN) when they apply for insurance. An automatic check
will then be made to the DVLA database, which will return accurate information
on licences. The information provided will include endorsement codes, penalty
points, the amount of any fines, conviction dates, disqualifications, type of
licence held, length of time licence held and entitlement to drive vehicles -
for example manual or automatic, motorcycle, HGV, etc..
will the MyLicence initiative go live?
The DVLA is building a customer
portal that drivers are encouraged to use to check what data the DVLA holds on
them. The portal will be available from the end of 2013.
joint initiative of the DVLA, the Department for Transport and the insurance industry,
represented by the ABI and the MIB, is working towards going live in Q2 2014.