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MVDA say VIC should be abolished

VIC review
MVDA produce eight page report in response to the Government's VIC consultation.
The MVDA recently responded to the government’s consultation about the VIC scheme. Their main conclusion is that it should be abolished as soon as possible.

There response isn’t that simple though, in fact it runs to eight pages as they also believe that there is an urgent need for controls to be tightened in a number of key areas, relating particularly to the activities of the insurance industry regarding compliance with the Code of Practice for Disposal of Motor Salvage and DVLA. “Paramount is improved communication and co-ordination between DVLA and insurers” the report states, with specific attention to vehicle tracking including changes of keeper, disposal into trade, export and Certificates of Destruction.

MVDA members can request a copy of the full report but the key points considered by MVDA in reaching their conclusion about the VIC scheme are as follows:
  • No evidence that VIC has deterred vehicle crime.
  • Less than 38 ringers uniquely detected since VIC was introduced with the high cost borne by sellers and purchasers of salvage bearing a VIC marker. MVDA estimate that it has cost around £4 million per ringer detected!
  • The burden on the costs has fallen disproportionately on MVDA members, which are mainly small family businesses.
  • High proportion of vehicles bearing a VIC marker that do not go through the scheme (78%) and the significant proportion (30%) that remain entirely unaccounted for.
  • Lack of objectivity within the consultation document and accompanying impact assessment; the lack of clarity of data presented; the disparity between the ‘hard data’ and the conclusions drawn; leading to a significant under-estimate of the true cost benefits of abolishing the scheme.
  • The ‘disproportionality’ of the VIC scheme in the context of overall vehicle crime The likelihood that the ‘missing’ insurance vehicles constitute just a small fraction of a much larger problem of ‘missing vehicles’, and that is where the limited resources available would be better focused.
  • The opportunities presented by the ongoing Home Office review of the Scrap Metal Dealers Act 1964 and the Motor Salvage Operators regulations, and the DVLAs online initiatives, give scope for considerable ‘tightening’ of the system while removing unnecessary, burdensome and economically damaging legislation.

The full report is eight pages and goes into great detail and the reasoning behind their position. It’s good to know we have an effective trade body fighting our corner. If you want further information about MVDA you can call them on 01544 267140 or visit their website.

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