Under the new laws, it will be an offence to keep an uninsured vehicle - even if it is not being driven.
Unless the registered owner has filled out a Statutory Off Road Declaration (SORN) form, which declares the vehicle is off the road, the new penalties will come into force.
The new measure was originally proposed by Labour government in 2006 as part of the Road Safety Act, and will be policed by comparing the Motor Insurers' Bureau records with those of the Drivers and Vehicle Licensing Agency (DVLA).
The Department for Transport (DfT) claims that the move will target the estimated one million uninsured drivers in Britain and help reduce the 30 pound estimated annual cost to responsible motorists in insurance premiums, the Daily Mail reported.
According to the DfT, uninsured drivers kill 160 people and injure 23,000 every year in Britain.
Mike Penning, the road safety minister, said, 'The motoring underclass is not going to get away with this.'
Owners will be told in writing that they face a 100 pound fine if the car or van is not insured by a certain date and if the vehicle remains uninsured, regardless of whether a fine has been paid or not, it could then be seized and crushed.
However, some motoring agencies say that the measures will do little to combat the problem of those who drive deliberately without insurance, and will instead catch out average motorists, the report said.
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