Motor Insurers’ Bureau claims and limitation periods

The procedure for making a claim to the Motor Insurers’ Bureau for compensation in respect of injury caused by an untraced driver should be subject to a limitation period no less favourable than that which applied under section 28 of the Limitation Act 1980 to the commencement of proceedings by minors for personal injury in tort against a traced driver. Because the three-year time limit for the bringing of a claim under the existing procedure was not compliant with art 1(4) of Council Directive 84/5 EEC, which was capable of having direct effect, the UK was in sufficiently serious breach of its Community law obligations to give rise in principle to a liability for damages.