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New laws to tackle uninsured drivers could result in increased administrative costs and burdens on fleet companies and vehicle leasing businesses.
The changes, due to be implemented later on in the Spring, will introduce a new offence of keeping an uninsured vehicle. Liability will fall on the registered keeper of the vehicle, which could be the leasing company or fleet operator, even though they will not have control or physical possession of the vehicles that are leased out.
Such companies will need to ensure that those in possession of their leased vehicles inform them of any changes to their drivers' insurance policies, so that they can keep a check on whether the vehicles are adequately insured at all times.
Various companies are producing software that can be used by leasing companies to keep a track of their vehicles' insurance. They should also ensure that such details are provided to the Motor Insurers' Bureau to include on their Motor Insurance Database.
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