One of the writers for Classic Bike wrote an article last month about the same thing happening to him. He contacted his insurers who confirmed he was insured & to sum it up it was down to the MIB being even more incompetent than the DVLA.
This happened to me last month. Was just checking my bank statements and spotted a dubious looking refund that seemed to match the same amount I paid for my insurance. Rang the company to find they had cancelled it (in error) so I had been riding around since the 22nd August uninsured…
Got it all sorted in the end but still a shit experience
Mian, this could turn into a real ball ache as the DVLA will say that if a summons has been issued they won’t do anything and to contact the court.
Your best bet is to contact the CIE (continuous insurance enforcement) team in Ipswich on 01473 217 261 who do the prosecutions paperwork on behalf of the DVLA in these matters.
pm me on fb if you need more info