The paper counterpart to the driving licence photo card is due to be phased out and records will be held online by the DVLA.
When will this come into force?
It is scheduled to come into force in mid 2015.
What will be the benefits to motorists?
The benefit to motorists will not only be that they will no longer be required to carry the paper counter part of their licence with them but they should see a reduction in their insurance costs.
At the moment, firms cannot check driving licences or traffic offence details when they sell policies, meaning they have to "price in" risk factors.
The Association of British Insurers says premiums are pushed up by the fact that insurers have to take account of the risk that drivers either do not tell the truth about motoring convictions to get a lower quote or simply make a mistake.
How will the online system work?
Cabinet Office Minister, Francis Maude, said anyone with a driving licence will be able to use the online database.
The system due to be launched by the DVLA will also allow insurers to access information using an individual's licence number.
Are there any downsides to this proposed system?
This proposed system could cause problems for those who find it difficult to use the internet. That being said, Francis Maude has confirmed that there will be an assisted service whereby people will be able to access help from a call centre, library or post office.
In reality will this make much of difference to individual motorists?
It has yet to be seen what overall saving drivers will make on their insurance premiums. However, whatever the extent of the saving, it can only be seen as a positive.
Drivers who fraudulently fail to disclose motoring convictions in order to get a reduced quote will no longer be able to get away with it. Beware!
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