Frequently Asked Questions

Who are the MIB? The Motor Insurers Bureau (MIB) is a body that  exists to compensate victims of uninsured or untraced drivers and is effectively a safety net. The MIB came into existence in 1946 and every insurer that offers compulsory (third party only) motor insurance is obliged to contribute to MIB’s funding. Ward Gethin’s Neil John explains more: The MIB enters agreements with the Government from time to time, which set out how the two schemes operate. The current agreement for uninsured and untraced drivers are 13 August 1999 and 14 February 2003 respectively, and any accidents after the date of an agreement are usually bound by that agreement. In both cases, there are earlier agreements and any accident before the above dates will be covered by the preceding agreement. As stated there are two spheres of the MIB’s work: uninsured and untraced drivers. If a vehicle is insured, whether the driver is or not, any claim arising out of the use of that vehicle will be dealt with by the relevant insurer, under the provisions of the Road Traffic Act 1988. Where neither the vehicle nor the driver is insured, subject to certain notification provisions, the MIB will indemnify a claimant for any damages due to him or her. In this circumstance, the MIB will require the claimant to sign over, or subrogate, his or her rights to pursue the uninsured driver to the MIB so it can attempt to recover any outlay if this is possible. This will depend a great deal on whether the uninsured driver has any assets – the answer is usually no. In a claim involving an uninsured driver, the successful claimant can recover damages in the same way as if the defendant were insured and is subject to the same time limits, requirements to issue court proceedings and to obtain judgment against the named driver. The obligations on the claimant’s solicitor are also higher than for untraced claims. The solicitor must make all reasonable enquiries to see whether the third party is insured and, if so, identify the insurer, as soon as reasonably practical. In essence, the enquiries should be made on the day of instruction. Historically, the preferred method of obtaining this information was to write to the third party driver on the day of receipt of instructions requesting their insurance details pursuant to Section 154 of the Road Traffic Act 1988 within three days. If no details are forthcoming within that time frame, the solicitor should then report the driver to the police for failing to provide the information, and notify the MIB of a potential claim. With the advent of improved technology, the Motor Insurers Database and Information Service has come into being. This website contains a search engine which solicitors who register have access to, allowing them to enter a registration and date of accident. The search will reveal whether insurance cover is registered against the vehicle on the relevant date and, upon request, an email will be sent to the solicitor confirming the insurer’s contact details and policy number. If no details are found, and not all policies are registered on the database yet, a prompt will arise to download the uninsured driver’s agreement application form and the MIB will be automatically notified of a potential claim. The requirements to register a claim for an untraced driver are less stringent – the application form must be lodged with the MIB within three years of the accident. As there is no named driver to sue, proceedings cannot be issued. The MIB then investigates the application and decides whether the accident was caused by the actions of another driver. If so, an award will be made. If not, there is a right of appeal to an arbitrator but if the appeal is unsuccessful, the claimant is liable to pay the arbitrator’s fee, currently just under £600. Under the untraced driver’s agreement, only injury damage is recoverable and a contribution towards costs. Expenses such as motorcycle repairs and damaged clothing are not generally payable under the untraced agreement, unlike the uninsured agreement. Where property damage is recovered, there is an excess currently £300. The most common examples of untraced drivers are hit and run accident and fuel or other spillages. It is important, if you are able, to gather as much evidence (including photographs) of any spillage at the time and report it to the police as soon as possible to enable a report to be compiled as this may help the MIB to establish that a hazard existed at the time of your accident. This is the last thing on anyone’s mind when the worst happens, but remembering a registration plate if another vehicle hits you may mean you can claim full compensation rather than reduced damages if you have to proceed under the untraced drivers agreement. The 6 golden rules after any accident are: 1. Get every party’s name, address and registration number. 2. Gather as much physical evidence as you can – such as photos of the road surface or the other vehicle. 3. Take the name and address of any witness. 4. If you are injured in any way, call the police out to the scene. 5. If the other driver leaves the scene without giving you his/her name and address, report it to the police straight away. 6. Ring Neil on 01553 660033 and talk to a specialist biking solicitor. This is not designed to be a definitive guide to MIB claims or how to make them. For a friendly efficient service, follow rule 6 above.           Go back to Frequently Asked Questions