When an uninsured driver causes an accident, they will often not have the means to pay compensation personally. For this reason, claiming against an uninsured driver would need to be commenced against the Motor Insurance Bureau (MIB) for compensation. Subject to various conditions and exclusions, the MIB is advised to meet an unsatisfied judgement including costs, under the Uninsured Drivers Agreement 2015. Our personal injury expert, Stacey Smith, outlines all you need to know in relation to uninsured driver accidents.

Given the nature of uninsured drivers, claims by their passengers often raise issues regarding seatbelt usage, drink or drugs and whether there was a joint enterprise in the commission of a crime. These issues are prevalent in MIB cases and also relevant for any claim including contributing negligence and illegality.

There is a different process where the owner or a driver of a vehicle cannot be identified. For claiming against an uninsured driver, a claim is pursued in the normal way except that an application to the MIB must be submitted in the correct form and the MIB be joined in the action at the outset.

Where a Claimant has obtained an unsatisfied judgement against the person in a Court in Great Britain the MIB will pay the relevant sum to the Claimant within 7 days. The relevant sum includes a claim for death, injury and property damage as a result of the use of a motor vehicle on a road or public place. The MIB is a fund of last resort, not an insurer. Although the Uninsured Drivers Agreement does not require the driver in question to be uninsured as a pre-requisite to its liability satisfies the relevant judgement with considering whether the claim should be dealt with the MIB or another insurer.

In summary, the hierarchy of insurers in relation to an accident is as follows:

1. Is there an insurer who will offer an indemnity in the normal course of events? If not,
2. Is there an insurer who is liable under the Road Traffic Act 1988? If not,
3. Is there an insurer concerned under Article 75? If not,
4. The MIB should deal with the claim subject to the terms of the agreement.

It is important to note that an Article 75 insurer only deals with the claim under the terms of the Uninsured Drivers Agreement.

The MIB incurs no liability unless they are joined at the outset as an additional Defendant to the proceedings, except when the Claimant initially and reasonably knew the uninsured driver was not covered by a contract of insurance with an insurer whose identity can be ascertained and if:

1. The Claimant has given notice of commencement of the relevant proceedings complying with the requirements of the Road Traffic Act 1988,
2. The MIB is notified promptly when the Claimant knew to reasonably believe that the insurer should be involved in the proceedings.
3. The Claimant agrees to the MIB being joined to the relevant proceedings and
4. They send copies of the Court proceedings and supporting documents that have previously been sent to the Defendant or Insurer to the MIB promptly.

The MIB can require the Claimant to make attempts to secure a judgement against other persons who the MIB believe may be wholly or partly responsible for the accident. In these circumstances, the MIB will indemnify the Claimant against the reasonable costs of bringing these proceedings and will have overall control of the steps taken in the litigation process.

The MIB’s liability under the Uninsured Drivers Agreement is limited to that which would have been covered by compulsory road traffic insurance pursuant to Road Traffic Act 1988 Part VI. It follows that the liability in question is not one where insurance is compulsory under Road Traffic Act 1988, the MIB may argue that it is not liable. This gives rise to a number of situations that potentially fall outside the Uninsured Drivers Agreement;

1. When the accident did not arise from the use of a motor vehicle which is subject to compulsory insurance under the Road Traffic Act 1988. This is defined as a mechanically propelled vehicle intended or adapted for use on roads.
2. When the accident did not arise from the ‘use’ of a motor vehicle. The word ‘use’ has been given a wide interpretation by the Courts but has its limits such as the fact that the passenger is not using the car under the terms of the Road Traffic Act 1988.
3. Insurance is required when using a vehicle on the road or other place, so incidents on private land will not be covered by the Uninsured Drivers Agreement.

Liability is also subject to a number of exclusions and limitations:

1. Where the liable vehicle is owned or in the possession of the Crown unless it is covered by insurance or some other person responsible for maintaining insurance on the vehicle.
2. Local authority, police and NHS vehicles are not obliged to have insurance because the exemption only applies when the vehicle is being driven under the owner’s control, and it appears that the vehicle is stolen from these bodies will be covered by the agreement.

As the MIB is the last resort of compensation where the Claimant is entitled to or has received payment or indemnity from any other personal organisation other than the Criminal Injuries Compensation Authority, the MIB will not indemnify the claim.

Property damage claims are subject to an upper limit of £1.2 million.

In passenger claims, the MIB may not take on the claim if it determines that the passenger knew or reasonably knew and voluntarily agreed to be carried by the vehicle concerned:

1. Has been stolen or unlawfully taken or,
2. Has been used without insurance.

If you require our assistance in claiming against an uninsured driver, get in touch with our expert Personal Injury Team today on 0114 3583134 or email us via our contact page.