The Motor Insurers Bureau (MIB) is a UK body that compensates victims of accidents caused by uninsured or untraced drivers. It is funded by a levy on every motor insurer, so all insured drivers contribute to it through their premiums.
In one line: The Motor Insurers Bureau (MIB) compensates victims of uninsured and untraced drivers.
How the Motor Insurers Bureau (MIB) works
The Motor Insurers Bureau (MIB) acts as the insurer of last resort. If a driver is injured or their property is damaged by someone with no insurance, or by a hit-and-run driver who cannot be traced, the MIB can pay compensation.
If an uninsured driver causes 12,000 GBP of injury and vehicle damage, the victim can claim against the Motor Insurers Bureau (MIB) where the responsible driver cannot pay, subject to the scheme's terms and any excess for untraced claims.
The MIB also runs the Motor Insurance Database, which supports continuous insurance enforcement by recording which vehicles are insured.
The MIB in practice
The Motor Insurers Bureau (MIB) is a backstop, not a substitute for insurance, so a driver causing an accident while uninsured still faces prosecution and may have to repay the MIB.
Claims against untraced drivers can carry conditions and limits that differ from a normal insurance claim, because there is no identified policy behind them.
Primary source: GOV.UK: Vehicle insurance
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