A DND plate will not mean much to most civilian police, but it certainly does to the MPs. Apparently there was a case many years ago where someone bought a staff car that had the plates still on it and continued to drive it for a time with the plates. DND tightened up security wrt the plates after that. If a plate was lost or stolen, the vehicle was to be assigned a new CFR. And I have seen the MPs travel many miles to recover a plate that was inadvertently left on a vehicle and found it's way to the mil scrapyard.
The DND plate is a sign of insurance (underwriter's insurance if I recall) and technically using one is displaying a false insurance.
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