The Motor Insurers’ Bureau is a non-profit making organisation which is funded by a levy paid for by the law abiding motorists. Therefore every insured motorist has an interest in ensuring that claim payments to the innocent victims should take into account the victim’s obligation in law to mitigate their loss.

Some simple steps to consider:

·         Insurers and solicitors have electronic access to the Motor Insurance Database of all insured vehicles and in the event that a policy cannot be found this is indicative that the vehicle may not be insured.

·         The Bureau does not think it reasonable that large credit hire claims are run up by claimants prior to notifying the Bureau of the loss. We believe that in the event that a credit hire contract is undertaken, in preference to the offer of a courtesy car being provided by the claimant’s insurer, that a completed claim form should be submitted to the Bureau immediately to enable the repair period to be monitored and provide an opportunity to inspect the damaged vehicle.

·         Failure to make early notification to the Bureau will be taken into account when considering settlement of a claim for hire charges in relation to the period of hire.

·         Claimants also need to be aware that they may not be able to claim back all the credit hire costs particularly if they have the means to fund car hire on a non credit basis. In legal terms they are not impecunious and may be asked to prove this. Likewise some of the additional costs associated with credit hire such as daily insurance charges may not be paid if the hired vehicle could simply have been added to the hirers own policy for a nominal amount which we will consider paying.

·         Claimants should be aware that they are legally liable to reimburse the credit hire company the full amount of the invoice regardless of whether a full recovery is obtained.

·         Claimants may be asked or encouraged to take out an insurance policy to cover the cost of the hire. If they do so then under the terms of the uninsured and untraced drivers’ agreements the Bureau has no obligation to pay a claim where another policy can be called upon to make reimbursement. This is why the Bureau acts as a safety net where there is no other insurance to help the innocent victim.

We are committed to compensating innocent victims but that means payment of what is fair and reasonable.

If you have any concerns about hiring or any other aspect of your claim please call us on 01908 830001 and we will be pleased to give you advice.