Drivers could benefit from less motor insurance red tape after a government consultation to scrap the legal requirement to issue certificates was launched today (14 November).

The eight-week exercise will seek the views of the industry, motorists and other stakeholders on the benefits of moving towards a purely online system.

Under current law, insurance companies must issue a paper or electronic certificate when agreeing a policy. However, many organisations, including the police and vehicle rental companies, already rely on information stored on the Motor Insurer’s Database (MID) as evidence of valid insurance.

Roads Minister Stephen Hammond said, “More and more people are using technology to organise their everyday lives so it is only right we look at how we can make life easier for motorists and industry. That is why today we are launching a consultation to scrap the legal requirement for insurance certificates to be issued and consolidate a system whereby all information is online. This has the potential to make significant savings down the line which I hope will be passed on to policyholders. It will also make the lives of motorists and police easier.”