Frequently Asked Questions
Why was MIB formed?
The MIB was established in 1946 as a central fund to provide a means of compensating the victims of road accidents by negligent uninsured and untraced drivers.
Who pays for MIB?
The MIB is funded by all UK motor insurers. Motor insurers are only allowed to operate if they belong to the Bureau and pay a share of its costs.
The ultimate cost falls to law abiding motorists via their insurance premiums.
How does MIB function and on what legal basis?
It functions under two separate Agreements between Government and the motor insurance industry.
The Uninsured Drivers Agreement requires the MIB to meet unsatisfied Civil Court Judgments against identified motorists who may not have been insured as required by the Road Traffic Act 1988.
The Untraced Drivers' Agreement requires the MIB to consider applications for compensation from victims of "hit and run" motorists.
The MIB's obligations are linked to the compulsory insurance requirement of the Road Traffic Act, so the protection provided is limited to where there is a legal requirement to insure.
What is the cost of the operation of these Agreements to the individual motor policyholder?
At the present time, the cost varies between £15-£30 per policy. However, the cost continues to rise in the light of increasing compensation, legal costs and changes in legislation.
Other Frequently Asked Questions
Untraced Drivers Agreement
Motor Insurance Database (MID)
Making a Claim
This page was last updated on
15 May 2013