Motor vehicle insurance - The new motor insurers bureau uninsured drivers agreement

The Motor Insurers Bureau was founded in 1946 by means of an agreement between the motor insurance industry and the government. The original role of the MIB was to act as fallback insurer in the event that a person required by the law to carry motor vehicle liability cover had failed to do so, and caused injuries to a victim. Since that date the MIB’s role has been expanded in a number of ways. A further agreement, covering the indemnification of victims of hit and run drivers, was adopted, and the MIB’s obligations under the Uninsured Drivers Agreement have been expanded in response to EC Directives, in particular to take account of the extension of compulsory insurance to damage to property. The MIB’s future role is likely to be even more significant under current EC proposals for a fourth motor vehicle insurance directive. In the meantime, a fresh Uninsured Drivers Agreement was entered into in August 1999. The new Agreement applies to accidents occurring on or after 1 October 1999. The 1999 Agreement makes a number of substantive and procedural changes to the 1987 Agreement, which it replaces. It should be borne in mind that the 1987 Agreement continues to apply to accidents occurring before 1 October 1999, and will thus remain significant for a number of years to come.