Chapter 2 Flashcards
What is the Motor Insurers’ Bureau (MIB)
- An organisation that provides compensation to victims of motor accidents caused by uninsured or untraced drivers
- Established in 1946 and is funded through a levy on UK motor insurers
Exclusions of the Uninsured Drivers’ Agreement
- subrogated claims
- claims from passengers aware of the vehicle being stolen or uninsured
- the first £300 of property damage for incidents before 2008
Article 75
Requires insurers to meet certain liabilities arising from the use of vehicles, even if there is no valid policy under the RTA
Motor Insurance Database (MID)
A database that records details of motor insurance policies
Joint Tortfeasor Rule
If multiple insurers are involved, the Article 75 insurer can avoid liability if another party’s insurer is liable under the RTA
Burden of Proof for Article 75 Insurer
Lies with the insurer to prove, on the balance of probabilities, that they are not the article 75 insurer
Types of Insurer Liability
- Insurer in Contract
- RTA Insurer
- Article 75 Indurer
The main Insurance-Related offences for motorists and vehicle keepers
- using, or permitting the use of, an uninsured motor vehicle
- making a false statement or withholding information
- being the registered keeper of a vehicle that does not meet statutory insurance requirements
Examples of an Inoperative Motor Policy
- policy period doesn’t cover vehicle use time
- vehicle used not specified within the policy
- use outside the policy’s coverage
- driver excluded by name or conditions
- driving without a valid licence, or disqualified
Section 173(1)
Makes it an offence to forge, alter or use a document with the intent to deceive
Ways to address Uninsured Driving
- serious and organised crime and police act 2005, allowing police to seize uninsured vehicles
- road safety act 2006, introducing the offence of being the keeper of an uninsured vehicle
- continuous insurance enforcement 2011 (CIE)
Continuous Insurance Enforcement (CIE)
- DVLA and MID databases are compared to identify uninsured vehicles
- registered keepers receive a warning letter and may be issued a £100 fixed penalty
- further non-compliance can lead to vehicle immobilisation, removal or disposal
Exceptions to the CIE offence
- vehicles declared ‘off-road’ via SORN
- change of keeper, if DVLA notified
- historic vehicles not subject to SORN
- vehicles reported stolen and not recovered
Information required to be held on MID
- registration numbers of insured vehicles
- insurance policy numbers and termination dates
- insurer’s names and address
- claims representative’s name and address
- owner/driver/keeper details if necessary for claimants
MID data updates
MID1: 7 days for individual vehicles/policies
MID2: 14 days for fleet/trade policies and 21 days for vehicle updates
Risk Prevention in Motor Insurance
- premium reductions for security measures like alarms, immobilisers and tracking devices
- risk management programs for businesses, including driving training
Insurance Fraud Bureau
Helps detect and prevent organised insurance fraud, with support from insurers and the police
MyLicense
A database that provides insurers with access to driver license information, helping to combat misrepresentation and non-disclosure
Pass Plus scheme
Offers premium discounts for new drivers who undergo additional training beyond the standard test
