car insurance: the Motor Insurers’ Bureau (MIB)
Compulsory third party insurance was introduced as part of the Road Traffic Act in 1930, but there were still a number of accidents involving drivers who had no insurance.
Following talks with the Government, the Motor Insurers’ Bureau (MIB) was formed in 1946 to make sure that motorists involved in accidents with uninsured drivers wouldn’t suffer financially.
Every insurer that sells car insurance must be a member of the MIB. Each insurer makes a contribution to the central MIB fund depending on how many vehicles they insure.
The MIB has two agreements with the Secretary of State for the Environment:
the uninsured drivers agreement
- No car insurance – the MIB will settle insurance claims for third party injury and damage to property.
- No valid car insurance – if a driver causes third party injury and damage to property while, for example, using their car for business on a private use only policy, the MIB will insist that the driver’s insurance company pays out to the third party. It will then be up to the insurer to recover its costs from their own customer.
the untraced drivers agreement
- If a driver who causes an accident can’t be found, the MIB will consider claims for losses – including injury, death and damage - as long as those losses are not covered by any other type of insurance.
Statutory Off Road Notification (SORN)
Since 2011, all motor vehicles must be insured unless they’ve been declared to the DVLA as ‘off the road’ and have a Statutory Off Road Notification (SORN).
If you’re using your vehicle when it has been declared ‘off the road’ and you’re not insured, your vehicle policy record won’t appear on the Motor Insurance Database. As it is an offence to drive without insurance, you should expect a warning letter, followed by a fixed penalty fine.