Chapter 2 Flashcards
What is the Motor Insurers’ Bureau (MIB)?
An organization funded by insurers to compensate victims of uninsured and untraced drivers.
What are the two main MIB agreements?
- The Uninsured Drivers Agreement.
- The Untraced Drivers Agreement.
What is the purpose of the MIB?
To ensure victims of accidents caused by uninsured or untraced drivers receive compensation.
What does the Uninsured Drivers Agreement cover?
It compensates victims injured or whose property is damaged by uninsured drivers.
What is the Motor Insurance Database (MID)?
A database containing insurance details of all vehicles in the UK, used to combat uninsured driving.
How does the MID help law enforcement?
Police can use Automatic Number Plate Recognition (ANPR) to identify uninsured vehicles in real-time.
What are insurance-related offences?
Offences such as driving without insurance, using false documents, or failing to provide information about a vehicle.
What are the penalties for driving without insurance in the UK?
Fines, penalty points, vehicle seizure, or prosecution leading to a driving ban
What are the key incentives insurers use to reduce uninsured driving?
Premium discounts for safe driving, usage-based insurance, and initiatives like black box policies.
How does the Continuous Insurance Enforcement (CIE) scheme work?
Vehicle owners must either have insurance or formally declare the vehicle off-road (SORN). Failing to comply leads to fines.
What is a SORN declaration?
A Statutory Off-Road Notification, which exempts a vehicle from requiring insurance if it is not being driven.
What is the purpose of combating uninsured driving?
To reduce accidents, lower the cost of claims, and ensure all road users contribute fairly to the insurance system.
What role does the Road Traffic Act 1988 play in uninsured driving?
It mandates third-party insurance for all vehicles used on public roads.
How do insurers detect fraud in uninsured driver claims?
Through tools like the Claims and Underwriting Exchange (CUE) and investigation of claim circumstances.
What is “fronting” in motor insurance fraud?
When a more experienced driver falsely declares themselves as the main driver to reduce premiums.
How does the MIB handle claims from untraced drivers?
Victims can claim compensation for personal injury or property damage when the responsible driver cannot be identified.
What are the limitations of MIB compensation?
Claims are subject to exclusions, like no compensation for property damage unless the victim is also injured.
What is the role of the Motor Insurers’ Bureau (MIB)?
The MIB compensates victims of accidents caused by uninsured or untraced drivers.
How is the MIB funded?
It is funded by levies on UK motor insurers, which is ultimately passed to policyholders through premiums.
What are the consequences for uninsured drivers?
Penalties include fines, points on their driving license, disqualification, or vehicle seizure.
How does uninsured driving impact victims of accidents?
Victims may face delays in compensation and higher premiums due to increased risk.
