Motor Insurers Bureau

(MIB)

a voluntary organisation set up by insurance companies to avoid government interference that makes sure that those injured on the roads by uninsured drivers are compensated. It operates under an agreement with the Secretary of State for the Environment to meet any unsatisfied judgments in respect of a liability against which it was obligatory to insure. There are three types of case:

(1) identified uninsured drivers;

(2) the identified driver with a policy of insurance in force but under which the insurer is not liable, perhaps because of fraud or because of breach of a term of the policy. In this case the agreement between the MIB and its members is called the domestic agreement; the insurer deals with the claim as if valid, allowing the injured person to recover damages. The domestic agreement even covers some cases where the insured was not liable at all because the policy did not cover the risk that materialised;

(3) the untraced driver, a type of case covered only since 1968.