Vehicles driven on British roads are required by law to be covered under third party insurance as a minimum. This includes any vehicle which has not been declared off the road with the DVLA – even if it is not in use.
Owner’s failing to insure their vehicle risk facing court prosecution and a fine of £1,000 – which increases to £5,000 and six penalty points if caught driving the uninsured vehicle.
Despite these deterrents, some motorists still choose not to take out insurance. Furthermore, some people allow others to drive their vehicle, despite the person knowingly not being covered under the owner’s policy.
Accidents with Uninsured Drivers
If the driver of the vehicle at fault is not covered under the vehicle’s insurance policy, a pay-out may still be made by the insurance company.
Victims of Road Traffic Accidents involving uninsured drivers could also expect a pay-out from the Motor Insurers Bureau (MIB).
Motor Insurance Bureau Agreements
MIB agreements are voluntary arrangements by which all motor insurers provide a fund for compensating the victims of Road Traffic Accidents caused by negligent uninsured or untraced drivers.
In short, MIB agreements are ‘funds of last resort’ for the victims of uninsured drivers. It is not usual to name the MIB as a defendant unless a ruling on the construction of the agreement itself is sought.
Can I Claim Through the Motor Insurance Bureau?
You may be able to claim through the MIB if your situation falls under any of the scenarios. listed below.
– This may seem daunting, but don’t worry, we are here to support and assist you throughout your claim.
Category 1: Scenarios Involving Insurance Policies
(a) The owner of the vehicle does have insurance, but allows a friend to drive who is not covered by the policy and does not have his/her own insurance.
(b) The owner of the vehicle does have insurance but the car is stolen and the thief does not have insurance.
(c) The owner of the vehicle did take out insurance, but the insurers have cancelled the policy on the grounds that the owner lied on the proposal form.
(d) The owner of the vehicle did take out insurance, but the insurers have repudiated liability on the grounds that the insurance policy is void for non-disclosure.
Category 2: Where an Insurance Policy was Never Taken Out
In Category 2 there is no insurer. However, the MIB may provide a safety net under agreements called Compensation for Victims of Uninsured Drivers.
Category 3: Hit and Run
In such cases, it may prove difficult to locate the driver. If the driver remains at large, a claim can be made under the Second MIB Agreement (Compensation for Victims of Untraced Drivers Agreement).
Compensation is limited to physical injury and the victim must present proof that the driver at fault was negligent.