Motor Insurance Bureau (MIB) And Motor Insurance Database

According to the latest research it is estimated that one in twenty motorists in the UK may not have motor insurance cover. This equates to nearly 1.5 million motor vehicle drivers who are breaking the law. Road traffic accidents involving these drivers is estimated to cost approximately £500m a year. The Association of British Insurers has also published research into the problem of uninsured drivers and shown that negligent drivers who fail to buy motor insurance are ten times more likely to drink-drive and six times more likely to drive an unroadworthy car.

So who compensates the victims of uninsured drivers who cause accidents?

The Motor Insurance Bureau or MIB was set up in 1946 to pay the victims of negligent uninsured and untraced motorists who cause car accidents in the UK. The bureau is funded by all UK motor insurance companies and Lloyds motor underwriting syndicates who are required by law to contribute adequate funds. In reality these costs are passed on to the every motorist through increased motor insurance premiums. It is estimated that an average of £20 to £30 per annum is passed on to the ordinary law abiding driver who buys motor insurance.

Two schemes are operated by the Motor Insurance Bureau to compensate the victims of car accidents caused by untraced drivers and those without motor insurance. These include the Uninsured Drivers' Agreement and the Untraced Drivers Agreement. In addition to this the motor insurers bureau also operates the Green Car Bureau.

Both the Government and the Association of British Insurers recognise that the law as it stands is inadequate when it comes to tackling the problem of uninsured motorists and likely deterrents in the future could be increased fines and confiscation of vehicles.