DVLA set to team up with UK insurers to combat fraud

Insurers in the U.K have shown keen interest in a joint venture along with the DVLA. This will allow the insurers to gather necessary details from the DVLA, about the traffic offences of their customers along with their disqualification from driving services and also penalty points. DVLA will now be in charge of this project which has been under thorough talks for a period of about three years and is expected to come into effect from the year 2014.

According to the statement of the Association of the British Insurers, it is an important and a big step taken to reduce such fraud cases, which in turn can save the money of honest drivers. A very thorough comparative study has shown that almost 23% of the drivers do not appropriately divulge their motoring histories to the insurers.

The list includes thousands of incapable ones, who have managed to get hold of insurance to save them from detection. In this system, the drivers are supposed to produce their driving license numbers to the insurance companies when applying for insurance. After this process a detailed checking will be done on the database maintained by DVLA.

The director of general insurance of ABI, Nick Starling has said that this process is an important step to combat against insurance fraud. He further added that the easy access of the database of the DVLA will clean out the fraud as well as make applying for insurance a lot easier. It will allow producing exact premiums on time and also lowering the amount of disputes in connection to claims.