HM Insights

Motor Insurers Bureau - new Untraced Drivers Agreements in force as of 1 March 2017

The Motor Insurance Bureau (MIB) published a new Untraced Drivers Agreement for England, Scotland and Wales that came into force on 1 March 2017. This is welcome addition to MIB law in general.

This new Agreement replaces the old 2003 Agreement and the five supplementary Untraced Drivers Agreements that amended it. In addition there is a supplementary Uninsured Drivers Agreement that comes into force on 1 March 2017.

Road Traffic Accident Car Crash Insurance Injury Settlement

Both new Agreements apply to accidents that occur on or after 1 March 2017 and typical of MIB agreements, they are not retrospective. The earlier Agreements will continue to apply to accidents occurring prior to that date.

What is the Motor Insurance Bureau?

The Motor Insurance Bureau is an organisation that was set up to ensure that those injured by uninsured or untraced drivers are able to be compensated for their losses. The Motor Insurance Bureau can help people who are involved in road traffic accidents where the normal routes of compensation might not exist or be difficult to trace.

Main changes of the New MIB Untraced Drivers Agreement

There are a number of changes but these changes preserve the well-recognised role of the MIB in untraced driver cases. A link to the new Agreement is at the end of this article.

Some of the main changes are:

  • Property damage excess- the excess on property damage is now £400;
  • Terminology- Applicants are now called Claimants;
  • Accounting for loss of earnings- the Claimant does not have to reduce his compensation from the MIB by any sum paid to him/ her for loss of earning by his employer, unless that sum is paid by the employers and the Claimant's insurance;
  • Property damage and significant injury- property damage is still recoverable provided it goes hand in hand with significant injury. Significant injury is defined as death or injury resulting in two nights or more inpatient treatment (previously 4 days) or 3 sessions or more of hospital out- patient treatment (not previously covered). This is a significant reduction in the "significant personal injury" threshold in such cases;
  • Interest on general damages- previously the award of interest was linked to the receipt of the police report. The new Agreement says that interest can run from the date of the accident.
  • Reporting to the police- the new Agreement requires the Claimant to report the accident to the police if the MIB reasonably requests them to do so. The time limit for this is now "as soon as reasonably" practicable. The former time limits of five and fourteen days are gone. The Claimant has a right of appeal if they think the request to report was unreasonable;
  • The use of the MIB claim form is now compulsory;
  • The exclusion of vehicle damage claims where the damaged vehicle was uninsured is now removed;
  • Awards to children and protected parties to be subject to approval by an arbitrator in all cases;
  • A new scale of fixed costs;
  • The MIB can no longer ask for a lower award to be made where there is an appeal against the original award;
  • The previous Agreement excluded compensation for death, injury and damages caused by or in the course of terrorism. This terrorism exclusion is removed on the basis that it is not permitted by European law to exclude it; and
  • Wider provisions for the costs of arbitration.

Changes to the Uninsured Drivers Agreement

The changes to the Uninsured Drivers Agreement involve some wording changes bringing the current Agreement in line with the new Untraced Drivers Agreement. Substantial changes include the deletion of clause 7 (which excluded liability for damage to a vehicle which was also uninsured) and clause 9 (which excludes terrorism from the scope of events covered).

What does this mean for drivers involved in accidents

The new Agreements will make it considerably easier for Claimants to pursue compensation, removing many of the complex and procedural hurdles.

Insured and untraced drivers - contact our Personal Injury specialist team

Our Road Traffic Personal Injury team are experienced in representing motorists, pedestrians, cyclists and motorcyclists who are injured in road traffic accidents with untraced drivers. We have extensive experience of representing people and claiming compensation through the Motor Insurance Bureau.

You can find the new MIB Untraced Drivers Agreement here.

 

Our solicitors can help you secure the justice and compensation you deserve. Get in touch now for a free chat about your claim.

 

The small print: This blog is for information purposes only and should not be construed in any way as providing legal advice.