Changes to the MIB Agreement Will Affect You and Your MIB Claim

Changes have been announced which will affect the way the Motor Insurers Bureau deal with claims (MIB Claim) under the Uninsured and Untraced Drivers Agreement that will have a bearing on new claims on or after March 1st 2017.

Following a two year government review process the new Untraced Drivers Agreement (2017) replaces the 2003 Agreement and changes to the Uninsured Drivers Agreement 1999 were put into effect from August 1st 2015.

All UK motor insurance companies contribute towards the Motor Insurers Bureau in order to provide access to compensation, in certain cases, for those who have been victims of accidents caused by uninsured drivers. The new agreement will undoubtedly simplify the claims process by eliminating many of the obstacles that claimants were up against but at the same time the MIB will find it more difficult to weed out fraudulent claims.

What Are The Changes?

Firstly, the 2017 Agreement requires claims to be made on an MIB claim form whereas before a claimant had to claim in writing. Previously a claimant would have had to report an accident to the police but under the 2017 Agreement this is not necessary unless the MIB reasonably requests this. The claimant will have the right to appeal against this.

The terrorism exclusion which was permitted under the 2003 Agreement is now void as European law prohibits this exclusion.

The biggest shake-up comes in the changes made regarding property damage. Under the 2003 Agreement anyone whose property was damaged by an untraced or uninsured driver was not entitled to compensation if their own vehicle was uninsured. This rule has now been swept away so that, even if a claimant is uninsured they can still make a claim if they also sustain significant personal injury.

The significant personal injury has been amended to cover two or more nights of hospital in-patient treatment, or three or more sessions of hospital outpatient treatment. Unfortunately, the 2017 Agreement doesn’t go far enough in specifying what kind of outpatient treatment is covered (e.g. Rehabilitation) or where treatment should be given. The excess amount for property damage has also been increased from £300 to £400.

There have also been changes made to the way that claimants are entitled to claim for costs in that the 2017 Agreement sets out a new scale of fees and provides the opportunity for a claimant to seek a higher contribution from the MIB in exceptional cases.

If you need help in deciphering these changes then contact our professional Nelson Solicitors at Concept Law for the most up-to-date information.