Motor

Motor Insurance Bureau

~4 min read

Category: Motor insurance · Reviewed by the Apex broking team · Last reviewed 2026-08-21

In short: “Motor Insurance Bureau” is a common rendering of the Motor Insurers' Bureau (MIB), the body that compensates people injured or suffering loss because of uninsured or untraced drivers in the UK. It is funded by a levy on motor insurers, which is ultimately reflected in every motor premium, and it operates through agreements with the Secretary of State for Transport — the Uninsured Drivers Agreement and the Untraced Drivers Agreement.

Category: Motor insurance Also known as: Motor Insurers' Bureau, MIB, motor insurance bureau Related concepts: motor insurance, Motor Insurance Database, Road Traffic Act 1988

Definition and the name

The correct name is the Motor Insurers' Bureau, usually shortened to MIB. The variant “Motor Insurance Bureau” is widely used and searched for, and refers to the same organisation. It is not a government department and not an insurer: it is a body funded by the motor insurance industry, and every insurer writing compulsory motor insurance in the UK is required to be a member and to contribute.

That funding structure is the key to understanding it. Compensation paid to the victims of uninsured driving is met by a levy on insurers and therefore, indirectly, by every motorist who does buy insurance.

The two agreements

MIB's compensation role rests on two agreements with the Secretary of State for Transport. The Uninsured Drivers Agreement applies where the driver responsible is identified but has no valid insurance in place; the current agreement for Great Britain dates from 2015, and was amended by a supplementary agreement that took effect on 1 March 2017. The Untraced Drivers Agreement applies where the responsible driver cannot be identified at all — the hit-and-run case; the current agreement took effect for accidents occurring on or after 1 March 2017.

The two routes work differently. An uninsured drivers claim is broadly conducted like an ordinary claim against a defendant, with MIB standing behind the judgment. An untraced drivers claim is an application to MIB, which investigates and makes an award under the terms of the agreement, with its own procedure and its own appeal route. Both agreements contain conditions and exceptions — notification requirements, time limits, and exclusions such as where the claimant knew or ought to have known the vehicle was uninsured or was being used unlawfully — and those conditions are strict.

The Motor Insurance Database

MIB also operates the Motor Insurance Database, the central record of insured vehicles in the UK. Insurers are required to keep it updated, and it is used by the police for roadside enforcement and automatic number plate recognition, and by the DVLA for continuous insurance enforcement, under which a registered keeper can be penalised for keeping an uninsured vehicle whether or not it is being driven.

For a commercial fleet operator this is an operational point, not a theoretical one. Vehicles added, disposed of or transferred between policies must be reflected on the database promptly; a vehicle that is genuinely insured but incorrectly recorded can still generate enforcement action.

Foreign vehicles and driving abroad

MIB also handles claims involving foreign-registered vehicles used in the UK, operating within the international green card system that provides for cross-border motor claims.

On the outbound side, the position for UK motorists is set by Government guidance rather than by MIB. UK drivers do not need to carry a green card to drive in the EU, or in Andorra, Bosnia and Herzegovina, Iceland, Liechtenstein, Montenegro, Norway, Serbia and Switzerland; UK motor policies provide the minimum third party cover required in those countries. A green card is still needed for certain other countries, including Albania, Azerbaijan, Moldova, Turkey and Ukraine. Businesses sending vehicles abroad should confirm both the green card position and whether the policy provides more than the minimum third party cover for the journey.

Why it matters

For a business running vehicles, MIB is relevant in two directions. If one of your drivers is hit by an uninsured or untraced driver, MIB is the route to recovery for injury and, within the terms of the agreements, certain property damage — and the notification conditions have to be met early. And if your own fleet records are out of step with the Motor Insurance Database, the enforcement consequences fall on you regardless of whether cover was actually in force.

Frequently asked questions

Is it the Motor Insurance Bureau or the Motor Insurers' Bureau?

The correct name is the Motor Insurers' Bureau, abbreviated to MIB. “Motor Insurance Bureau” is a common variant of the same name and refers to the same organisation: the industry-funded body that compensates victims of uninsured and untraced drivers in the UK.

What is the difference between the uninsured and untraced drivers agreements?

The Uninsured Drivers Agreement applies where the responsible driver is identified but uninsured, and works broadly like a claim against that driver with MIB standing behind it. The Untraced Drivers Agreement applies where the driver cannot be identified — a hit-and-run — and works as an application to MIB, which investigates and makes an award under its own procedure.

Who funds the Motor Insurers' Bureau?

The motor insurance industry. Every insurer writing compulsory motor insurance in the UK must be a member and contribute to a levy, the cost of which is reflected in motor premiums generally. MIB is not a government body and does not sell insurance.

Do UK drivers need a green card to drive in the EU?

No. Government guidance confirms that UK drivers do not need to carry a green card in the EU, Andorra, Bosnia and Herzegovina, Iceland, Liechtenstein, Montenegro, Norway, Serbia or Switzerland, as UK policies provide the minimum third party cover required. A green card is still required for some other countries, including Albania, Azerbaijan, Moldova, Turkey and Ukraine.

Related entries

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