accident compensation
All you wanted to know about cars but were afraid to ask
(April 2006) The Motor Insurers’ Bureau is a government backed organisation that provides compensation to victims of uninsured or untraced drivers. It was established in 1946, is based in Milton Keynes and is seen as the last resort for people injured or who have had property damaged by uninsured drivers.
Compensation comes from the UK Guarantee Fund, paid into by all motor insurers who are legally obliged to belong to the MIB and pay a share of its costs. Ultimately, however, the scheme is funded by legitimate motorists through their insurance premiums. Between £15 and £30 of every premium is directed to the fund.
The amount of compensation the MIB pays for bodily injury is unlimited, but there is a limit of £250,000 for damage to property. A £300 excess is also payable by the claimant.
Because the bureau is an option of last resort it does not cover victims who have alternative sources of compensation. This means drivers with fully comprehensive insurance who are in an accident with an uninsured driver will have to claim for damage to their vehicle from their own insurer. The MIB covers primarily drivers with third-party cover and only covers accidents in the British Isles (as well as Gibraltar).
Under the Untraced Drivers’ Agreement the bureau also offers compensation for victims of hit and run motorists or where false details have been provided and the driver’s real identity is not discovered.
Britain has one of the worst records in western Europe for uninsured driving, with an estimated one in every 20 cars on the road not properly covered. Uninsured drivers are also six times more likely to be driving an unroadworthy vehicle and 10 times more likely to drink and drive — increasing the chance of accidents.
Source: http://driving.timesonline.co.uk
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