Car Insurance: The Motor Insurers' Bureau (MIB)

What is the Motor Insurers’ Bureau?

The Motor Insurers’ Bureau (MIB) was formed in 1946 to make sure that motorists involved in accidents with uninsured drivers wouldn’t suffer financially. Despite compulsory third party insurance being introduced by the Road Traffic Act in 1930, there were still a number of accidents involving drivers who had no insurance.

Every insurer that sells car insurance must be a member of the MIB. Each insurer also makes a contribution to the central MIB fund depending on how many vehicles they insure.

What are the key details about the MIB that I need to know?

The key things to note about the MIB are its two agreements with the Secretary of State for the Environment and how it relates to making an insurance claim:

The Uninsured Driver’s 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 Driver’s 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.

For more information on the Motor Insurance Database, their practices and agreements please click here