UNINSURED ROAD ACCIDENT CLAIMS AND THE MOTOR INSURERS’ BUREAU

March 6th, 2009 Hinchliffes

Published in Truckstop News – March 2009.

In this month’s issue Steven Hinchliffe of the specialist Personal Injury firm Hinchliffes Solicitors will consider “UNINSURED ROAD ACCIDENT CLAIMS AND THE MOTOR INSURERS’ BUREAU”.

The Motor Insurers’ Bureau (“MIB”) was established in 1946 as an organisation to deal with claims by innocent victims who have suffered personal injury or damage to their property because of a negligent uninsured or untraced driver. The MIB has entered into agreements with the Government to provide financial compensation in these situations.

Under the Road Traffic Act 1988, every insurance company underwriting compulsory motor insurance is obliged to be a member of the MIB and to contribute to its funding. A staggering one out of every 20 drivers is uninsured, and as a result every insured driver pays around £30 more for their premium to cover the claims settled by the MIB.

The MIB has an obligation to pay accident compensation where the negligent driver is found to be responsible for damage to property or personal injury arising from a road accident that has occurred either on a road or in a public place, for example in a public car park.

The MIB stands in place of the guilty party’s insurers and will investigate issues of liability and valuation in the same way as in any other road accident claim. If there is a dispute the matter may need to be decided by the Courts, and as in any other case the value of the claim may be reduced if there is evidence that the claimant was also partly responsible for the accident.

Although it is possible to liaise direct with the MIB, the procedure can be complicated and lengthy. They do not roll over and settle every claim, but take a firm line and only pay out if fully satisfied that liability is established. Their rules and timescales must be strictly adhered to; otherwise the claim may be lost simply on a technicality. Therefore most people prefer to instruct experienced compensation solicitors to make their car accident claim or motorcycle accident claim.

Where the guilty party is known but is uninsured, the MIB will pay legal costs as well as accident compensation in a successful claim. Therefore, these claims can be handled by solicitors on a “No Win No Fee” basis. A claim form must be sent to the MIB with any supporting documents, eg copy letters to the guilty party requesting insurance details or documents provided by the Police. Issues to bear in mind include:-

- claims must usually be made within 3 years of the accident;

- a £300 excess applies to any claims for damage to property, and which is deducted from the total amount claimed;

- if you have comprehensive motor insurance you cannot claim for damage to your vehicle and must instead liaise with your own insurers.

If the guilty party is not known (eg in a hit and run) a claim can still be made, but the process is much more stringent. In particular, the MIB will only pay very limited legal costs and it is therefore not usually possible for a solicitor to offer a “No Win No Fee” arrangement. However, if the injuries are severe it is still advisable to seek legal advice to ensure the appropriate level of compensation is achieved. Issues to consider in these claims include:-

- the matter must usually be reported to the Police within 14 days of the accident, but this period can be extended in certain circumstances (eg if hospitalised);

- a claim for personal injury compensation must usually be made within 3 years of the accident, but if the claim is for damage to property only this period is reduced to 9 months;

- a £300 excess applies to any claims for damage to property, and if you have comprehensive motor insurance you cannot claim for any damage to your vehicle;

- if the vehicle that caused the accident cannot be identified no claim for damaged property can be made, but a claim for personal injury can be pursued.

Therefore, if you have been involved in an accident and have not pursued the matter because the guilty party is either uninsured or unidentified, and if you are within the set timescales, you can still seek advice about claiming compensation.

QUESTIONS AND ANSWERS

A motorcyclist hit the side of my car and accepted it was his fault, but he has no insurance. My wife was with me and was hurt in the impact. Can she make a claim?

Your wife could claim personal injury compensation under the MIB’s uninsured procedure. She can instruct solicitors under a No Win No Fee Agreement and keep all the compensation recovered, as her legal costs would be paid by the MIB. As you were not injured, you will need to contact your own insurers about the repairs to your car.

My mother is 73 and was hit by a car when crossing the road. The driver did not stop but someone saw the accident and said he was driving too fast and was out of control. My mother broke her hip and I would like to know if she can be compensated for her suffering.

Your mother should be able to claim under the MIB’s untraced driver scheme. Unfortunately they will only pay limited legal costs, but if she did not feel confident in making the claim direct, as the level of injury compensation is likely to be substantial it may be worth her instructing a personal injury lawyer, even if she has to pay most of their fees. Otherwise she may not recover the amount she might be entitled to.

ENDS

Other Personal Injury FAQs)

PERSONAL INJURY CLAIM SOLICITORS:-

If you have suffered any form of accident or contracted an industrial disease contact personal injury specialists Hinchliffes Solicitors for immediate legal advice, to find out if you are entitled to make claims for injury compensation. All cases are conducted on a No Win – No Fee basis, where the Client keeps 100% of the compensation recovered.

Call now on 0800 138 1348 to speak direct to a personal injury lawyer or go to our Start Your Claim Now page to submit details of your personal injury claim online.