Motor Insurers’ Bureau Flashcards
The Motor Insurers’ Bureau (MIB) was established by
agreement between the motor insurance industry and the Government
What does MIB provide?
compensation for the victims of uninsured or untraced motorists.
To benefit the victims of motor accidents caused by such motorists,under this agreement:
a central fund was set up by the motor insurance market
Why was a central fund set up?
To benefit the victims of motor accidents caused by such motorists,under this agreement:
Who was the central fund set up by?
the motor insurance market
ALL motor insurers in the UK must join the MIB
??
True
What does MIB provide?
compensation for the victims of uninsured or untraced motorists.
Who pays??
Each member pays a levy to the fund in proportion to the size of their motor account.
Who administers central fund?
Motor Insurers Bureau (MIB)
a company limited by guarantee is:
Motor Insurers Bureau (MIB)
In addition to compensating the victims of uninsured or untraced motorists,
the MIB acts as a GUARANTOR of the existence of insurance for UK vehicles overseas and takes responsibility for:
Handling claims arising from foreign vehicles in the UK
The MIB is also the compensation
body responsible for handling claims:
from UK citizens who have been involved in accidents elsewhere in Europe.
What is MIB primary function?
to ensure that compensation is provided for innocent victims of road accidents,
when the demands of the Road Traffic Act 1988 (RTA) (that all vehicles should
have a certain level of insurance), have not been met.
The implementation of the two MIB agreements, the latest of which are:
- the uninsured drivers’ agreement dated 3 July 2017; and
* the untraced drivers’ agreement dated 10 January 2017.
When a motor insurance policy is taken out, the insurer acquires three separate sets of obligations:
Contractual, Statutory and MIB.
Contractual obligations set under the terms of the policy?
True
Statutory obligations are :
under Part VI of the Road Traffic Act 1988;
The MIB obligations are NOT under article 75 of the MIB’s Articles of Association.
FALSE (The MIB obligations are under article 75 of the MIB’s Articles of Association) .
If an insurer decides that it cannot indemnify its insured, it must still consider its statutory obligations under the Road Traffic Act 1988 (RTA) and subsequent regulations.
True..
It is very rare for an insurer to be able to escape its liabilities under the RTA, BUT if it can it will almost always retain a liability under:
Article 75
What is Article 75?
An agreement between the MIB and its members, i.e. the insurance companies
and syndicates.
Under this article the insurers agree to accept liability in certain circumstances, where they would not be liable under the RTA.
True
Where an insurer has voided a policy for misrepresentation or non-disclosure of a material fact and it was entitled to do so is an example of :
The agreement by the Article 75.
In such circumstances the insurer will have no liability under the Road Traffic Act, but will handle the claim as :
an article 75 insurer.
If article 75 did not exist, all such claims would have to be considered by the MIB.
True
When this happens, the offending vehicle is strictly uninsured and it is only because this agreement between the MIB and its members exists, that the member is required to pay the
claim.
True
It remains an uninsured claim and as such the insurer’s liability will be restricted to the terms of the uninsured drivers’ agreement.
True
Any payment will be from the insurer’s own funds and there will be no reimbursement from the MIB central fund.
True!
The insurer will have subrogation rights against the policyholder, but in practice this is often difficult to enforce, why?
The policyholder is without funds.
What is the process for the Uninsured drivers’ agreement?
Under the uninsured drivers’ agreement, the MIB will compensate victims of a motor accident where the at-fault motorist has no motor insurance policy in force.
When does the agreement (Uninsured Driver’s Agreement) apply?
The agreement applies where the vehicle and the motorist are identified and allows compensation in respect of property damage and death or bodily injury.
How much in monetary terms do the damages cost?
Damages for third party personal injury are unlimited, but there is a £1,200,000 limit on damages for third party property damage.
If there is no insurer for the responsible party then the innocent victims’ claim will be considered by:
The MIB Central Fund
But Claims from passengers in vehicles will not be considered if they knew that the vehicle was stolen or being driven without insurance.?
True
And Claims for the cost of repairing the victim’s vehicle, where it was itself uninsured, will not be considered. ??
True
In relation to subrogation claims under MIB?
subrogation claims, cannot be pursued against the MIB, example where the Claims from insurers who have made a payment under a comprehensive policy
What are the above examples of????
Limitations on the uninsured drivers’ agreement.!!!
What did the Untraced drivers’ agreement deal with?
One potential weakness with the Road Traffic Act, by securing compensation for the victims of motorists who had no motor insurance at the time of the relevant accident.
However, one loophole remained, namely that where a victim of a motor accident could not identify the vehicle or the driver that was responsible for
the accident.
True (Untraced driver’s agreement),.
Why did The MIB enter into the first untraced drivers agreement with the Government in 1972:
In recognition of the problem of hit and run accidents.
The untraced drivers’ agreement operates in a wholly different manner from the uninsured agreement.
True
The injured party cannot substantiate at law a claim for damages since they are unable to name a defendant who they can sue and obtain a judgment against.
True
The victim has to submit a claim to the MIB, who will then investigate the matter and decide whether or not to offer a payment.
True
What If an applicant (claimant) is unhappy with the MIB’s decision??
they may appeal to an independent arbitrator to make a final, binding decision.
Under Untraced Driver Agreement, the MIB will be liable to pay compensation for :
claims for death or bodily injury, claims for property damage,
If the vehicle that caused the damage is unidentified :
The MIB pays compensation for a significant personal injury to any victim of the same accident.
What about Claims for property damage?
Subject to an excess £400
Subrogated claims included under the untraced driver’s agreement?
False. Subrogated claims are excluded, under the untraced driver’s agreement
The application to the Bureau must be made in writing within:
three years of the accident for injury claims,
or six years for property claims,
This is in-line under which act?
The Limitation Act 1980.
Application to the bureau for personal injury claims has to be made in writing within:
3 years of the accident for injury
Application to the bureau for property claims has to be made in writing within:
Six years
