Making claims against untraced or uninsured drivers

Someone is hit by an untraced or uninsured driver every 20 minutes in the UK. If this happens to you, what happens when you are injured and looking to make a claim for compensation? The Motor Insurer’s Bureau was established in 1946 to compensate the victims of negligent uninsured and untraced motorists. The MIB is a non-profit making company set up by motor insurers.  It is intended to be a “fund of last resort”.  Therefore, if any other policy of insurance covers the claim or any part of it, the claim must be directed to that insurer.

In terms of the Road Traffic Act 1988, every insurer that underwrites compulsory motor insurance must be a member of the MIB and must contribute to its funding.  It is therefore effectively funded by premium-paying motorists.

What can be claimed for through the MIB?

Subject to certain criteria, it is possible to claim for:

• Wrongful death
• Personal injury
• Vehicle damage
• Property damage
• Uninsured losses

Untraced Drivers’ Agreement

Untraced claims are dealt with through the 2017 Untraced Drivers’ Agreement.  It applies to accidents occurring on or after 1 March 2017.

Under this Agreement, the MIB will investigate claims brought by victims of allegedly negligent motorists who cannot be traced, for example, in “hit and run” accidents or where false particulars have been provided.  If the MIB refuses to make an award or if the award is not considered by the claimant to be sufficient there is an appeal process.

Clause 7 of the Agreement provides that the MIB is not liable for any claim for damage to property unless (a) an award for significant personal injury has been paid to any claimant in respect of the same event; and (b) the loss incurred in respect of damage to property exceeds the “specified excess” (currently £400).

Uninsured Drivers’ Agreement

Uninsured claims are governed by the 2015 Uninsured Drivers’ Agreement.  It applies to accidents occurring on or after 1 August 2015 and was amended by the 2017 Supplementary Uninsured Drivers’ Agreement.

Where there is insurance covering an at-fault vehicle, whether or not the user was covered by that insurance, the relevant insurer will usually step in and deal with the claim in terms of the Road Traffic Act 1988.  Where there is no such insurance or where the insurer has no obligation to meet the claim under the 1988 Act, the MIB will effectively take the place of the insurer.

In property damage claims, the “specified excess” does not apply as it does under the Untraced Agreement.

The 2017 Supplementary Agreement made some changes to the 2015 Agreement.  Most importantly, it deleted the whole of clauses 7 (vehicle damage) and 9 (terrorism).

Clause 7 provided that the MIB would not be liable for a vehicle damage claim where the claimant’s vehicle was also uninsured.  The deletion of this clause results in the somewhat anomalous situation where a claimant who has broken the law by driving without insurance can claim the costs of repairs to their vehicle from the MIB, which is ultimately funded by honest, premium-paying motorists.  Unsurprisingly, the MIB was not happy about this change but the Government felt its hands were tied due to European Directives.  Clause 9 provided that the MIB would not be liable for any claim caused by an act of terrorism.  Similarly, this was not compatible with European Directives.  Following Brexit, these changes may fall under review.

For more information and assistance on pursuing a claim through MIB, contact a member of the team.