Changes to the Road Traffic Act 1988 (RTA)

The Red Tape Challenge was introduced to give business and the general public the opportunity to challenge the Government to get rid of burdensome regulations, to boost business and economic growth and to save taxpayers money.

As part of this on the 30th June 2015 the Deregulation Act 2015 will come in to effect. This will have an effect on the RTA and specifially the way insurers deal with the issue and return of motor insurance certificates.

What does this mean for customers?

Insurers are still required to send and deliver the certificates to the policy holder but the delivery of the certificate is no longer requirement for cover to be effective.

When a policy is cancelled mid-term. Policy Holders will no longer have any obligation to return the certificate or to make statutory declaration that the certificate has been lost or destroyed.

This has a much bigger impact on insurance companies and where their own liability ends but the above points are where the customers will see the difference and should help to keep things simpler for everyone.

Details of the act in full can be found at the link below.

http://www.legislation.gov.uk/ukpga/2015/20/contents/enacted