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I wouldn't be too bothered about this. My car is insured by Churchill, and when checked on the PNC comes up with all the details. However, it doesn't appear on this Askmid site, so I'm a little suspicious of it.
BTW, your car WON'T be disposed of, it will simply be recovered to a rota garage IF the police can prove you're not insured at the time. If they can't prove it's uninsured (and not being on this database will mean nothing) they have to give you a producer or report you for no insurance, pending you producing it either at court or at a police station. Even if it is recovered to a a garage if uninsured, once it's then insured, you can pick it up from the garage. Obviously people sometimes don't insure a shed of a car, so losing it isn't a great problem, they'll just get another car that costs next to nothing. The normal everyday person, in fact, I would suggest the overwhelming majority of people who use this board, by the nature of the cars they own, will be quite safe, and this scaremongering tactic is a bit poor really. I wouldn't pay a great deal of attention to it.
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