Card License Renewal and Motor Insurance
Time flies. It was nine years ago that the new card licence system was introduced. Motorists are now in contravention of the law if they are not in possession of a valid card licence. Even more alarming is that motorists who failed to convert their old "ID" licences have no insurance cover as policies require them to produce a valid driver’s licence (i.e. the card license) when claiming vehicle damage.
The Position
Renewal. You are obliged to renew the card licence every five years. The renewal of the licence has caused much public frustration due to the ineptness of the e-Natis system. In fact, many people simply gave up standing in long queues and have not renewed their licence within the allotted time period.
Penalties.It is an offence should you not have renewed your licence in the prescribed time. Traffic officials are able to impose fines should you not be able to produce your valid card licence on request
Insurance. As mentioned, insurers deem you to be a licensed driver providing you converted to the new card system according to the type of vehicle you drive. Failure to renew the card license will not necessarily invalidate your cover as your insurer should still view you as a licensed driver. It is, however, important that in such cases written confirmation is obtained from your insurer affirming the validity of your card licence and that you then take all reasonable steps to renew your licence as soon as possible.
Employees. It is your duty in terms your business insurance policy to ensure that all your employees have converted to the card licence and that they have a valid licence according to the type of vehicle(s) they are permitted to drive. This duty also extends to the renewal of your employees card licences. The same principles described above apply to non renewal of employees’ card licences
Our Solution
Firstly, Chadwicks recommends that you check when your card licence renews. Once you have established the date, try and renew the license well in advance of the expiry date. In terms of your employees licences, we urge you to have a vehicle risk management programme in place which, if implemented correctly, will incorporate (amongst other things) checks and balances to ensure you are aware of your drivers licence status at all times. Chadwicks, as leading insurance specialists, can devise bespoke vehicle risk and insurance programmes to suit the particular needs of your company.Please contact us should you require more information.
