UK: Norwich Union to remove 'days of grace' from motor insurance

Norwich Union is making changes to its motor insurance policies to meet the new Motor Insurers’ Database (MID) targets.

From January, 95% of motor insurance records must be submitted to the MID within 14 days of any change to the motor policy, whether it be renewal, new business or mid-term change. This is aimed at addressing the growing problem of uninsured driving and to help insurers comply with the 4^th EU Motor Directive, which requires that the registration plate for every insured vehicle must be logged on a centralised national database.

Among the changes being introduced in 2005 to motor polices issued by the UK’s largest general insurer are:

• The removal of the 14 days intention to renew period (days of grace) in which a policyholder has the opportunity to renew their insurance after the renewal date has passed. This will bring business sold through the intermediary channel into line with business sold through our direct operation.

• Introduction of a five-day autolapse – this means that motor policies will be lapsed automatically if Norwich Union is not made aware of the renewal within five days following the renewal date.

All intermediaries should ensure that relevant information is sent to the insurer within five days of the effective date of transaction and that all the information is complete, accurate and sent to the right location.

Ken Wallace, intermediary business director at Norwich Union, said: "The MID target for January 2005 is that 95% of records must be submitted to them within 14 days of any change to the motor policy, whether it be renewal, new business or mid-term change.

"Norwich Union is ahead of the current MID standard to ensure 75% of motor insurance records are submitted to the MID within 14 days of any effective date of change, and with the help of brokers, we are confident these new measures will mean we will meet the new targets in January."

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Media contact:
Jenny Chapman at Norwich Union on 01603 682264/07800 699668.

Notes to editors
Norwich Union Insurance

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