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DVLA Notification of Sale or Transfer form V5C/3

Reference ID:

Department Responsible:
Department for Transport

Problem Description:
DVLA receives Form V5C/3 as notification of Sale or Transfer of a vehicle to the Motor Trade or Insurer or Dismantler.

The process enables registerd keeper records to be correctly updated.

Where an Insurer is settling a vehicle claim on the basis that the car is sold in its damaged condition to a Dismantler it has the ability to provide the information contained within Form V5C/3.

Proposed solution:
By creating an online facility to enable Insurers to communicate V5C/3 information to DVLA electronically a flow of immediate information would both speed the process and mitigate against the opportunity for inaccuracy or accidental loss of paper.

The resultant process would also be a cost effective alternative to handwritten forms being posted and actioned.

Cost or time incurred:
£50,000 and we are only c5% of the private Car market by volume.

Department for Transport

Public Sector

Business and industry , Charities

Official response

Thank you for your Better Regulation Proposal about the electronic delivery of disposal notifications. Your proposal has been passed to the Policy and External Communications Directorate within the Driver and Vehicle Licensing Agency (DVLA), an Executive Agency of the Department for Transport, for consideration. In making this assessment we have considered the simplification proposal and taken advice provided by policy officials.

You have suggested that DVLA should create an on-line facility to enable insurers to pass V5C/3 information to the Agency electronically.

DVLA is developing a strategy for electronic delivery of services in line with the Government commitment to modernise its interactions with the citizen. Arrangements are already in place to allow insurers to act as agents for registered keepers, by completing and sending the V5C to the DVLA. This procedure is currently under review with the intention of improving the processes for insurance companies, in line with the development for electronic delivery for all customers.

However, current legislation does sometimes require transactions to be supported by a signature and a formal declaration on the form to be submitted. When notifying disposal of a vehicle, legislation specifies that the registered keeper of vehicle must notify DVLA of such a change by returning the appropriate section of the Vehicle Registration Certificate (V5C). These difficulties are not insurmountable, but the existing legislative framework has to be taken into account as part of our review process.

Whilst no immediate action can be taken in respect of your proposal, we hope this does help to explain the position and we would like to extend our thanks for your time and effort in participating in this process.