John Stafford
Ceist:224 Mr. Stafford asked the Minister for the Environment if he will direct all car insurance companies to advise all local authorities of car insurance policy cancellations so that tax discs can then be recovered/cancelled.
Written Answers. - Insurance Policy Cancellations.
The cancellation of insurance for a particular vehicle does not affect the validity of the relevant tax disc and, accordingly, the local licensing authority has no power to recover the tax disc in such circumstances.
Insurance may be cancelled for a number of reasons, including the trading in of the taxed vehicle against a new vehicle covered by a fresh policy. In such circumstances, the purchaser of the taxed vehicles is lawfully entitled to drive it until the tax disc expires — provided he/she has arranged insurance cover.