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You only need insurance/MOT/etc at the time you buy the VED.
Not everything has to run on the same 12 month cycle. She could have switched insurers to a different provider part way through the year. She could have last bought VED for 6 months rather than a year, and it had expired. She could have paid by Direct Debit but the recent payments didn't go through, etc.
Greenbank
She's being charged with failing to license a vehicle, I assumed it was the one she was driving. So if she's the keeper of that car but it wasn't licensed I don't get how it could be covered.