Category: Motor · Reviewed by Tim Roche, Director · PI & Commercial · Last reviewed 2026-06-05
The Motor Insurers’ Bureau (MIB) is the UK trade body to which all motor insurers must belong, established to compensate victims of uninsured and untraced drivers under agreements with the Secretary of State for Transport and to operate the Motor Insurance Database.
Category: Motor Also known as: MIB, Motor Insurers Bureau First codified: Formed 1946 under the first Uninsured Drivers Agreement with the Minister of War Transport Related legislation: Road Traffic Act 1988 sections 144A and 145; Sixth Motor Insurance Directive 2009/103/EC Apex Wiki link: /wiki/motor-insurers-bureau/
The Motor Insurers’ Bureau (MIB) is a private company limited by guarantee, established in 1946 by agreement between the motor insurance industry and the UK government to compensate victims of road traffic accidents caused by uninsured or untraced motorists [1]. Every insurer authorised to underwrite UK motor insurance is required to be a member of the MIB; the MIB is funded by a per-policy levy on member insurers, the cost of which is ultimately reflected in motor premiums [1].
The MIB operates principally through two agreements with the Secretary of State for Transport: the Uninsured Drivers Agreement (the current version is the 2015 agreement, in force for accidents on or after 1 August 2015 with subsequent amendments) and the Untraced Drivers Agreement (the current version is the 2017 agreement, in force for accidents on or after 1 March 2017) [2] [3].
In addition to its compensation role, the MIB operates the Motor Insurance Database (MID), the UK’s central electronic record of motor insurance policies, on behalf of its members and pursuant to arrangements with the Secretary of State [4]. The MIB Group also operates related databases, including the Claims and Underwriting Exchange (CUE) and the MIIC Motor Insurance Information Centre. The MIB is funded entirely by its members and receives no government grant.
The MIB was established in 1946 to give effect to obligations the UK accepted in the aftermath of the Road Traffic Act 1934 to provide for victims of uninsured drivers. The original 1946 Uninsured Drivers Agreement has been replaced and re-issued several times; the current agreement is dated 3 July 2015 and is in force for accidents on or after 1 August 2015 [2]. The Untraced Drivers Agreement was first concluded in 1969 and the current version is dated 28 February 2017, in force for accidents on or after 1 March 2017 [3].
The MIB has no statutory base in itself, but its activities are closely intertwined with statute and with EU-derived law:
The MIB’s compensation function does not generally make it an ‘insurer’ for FSMA purposes, but it is subject to FCA conduct expectations indirectly through the Insurance: Conduct of Business Sourcebook (ICOBS) as it interacts with consumers and through DISP for ombudsman complaints [9]. The MIB’s own complaints procedure includes an internal appeal route and an arbitration mechanism under the Untraced Drivers Agreement.
Where a road traffic accident victim cannot recover compensation from a tortfeasor’s insurer because the tortfeasor was uninsured or cannot be traced, the victim may claim compensation directly from the MIB.
Uninsured drivers (Uninsured Drivers Agreement). Where the tortfeasor is identified but holds no policy of insurance satisfying section 145 RTA 1988, the victim brings proceedings against the tortfeasor and joins the MIB, which then satisfies any judgment subject to the agreement’s exclusions and excesses. The MIB pays for personal injury without monetary limit and for property damage up to £1.2 million per accident, in line with the Motor Vehicles (Compulsory Insurance) Regulations 2000 minimum [10]. A £300 excess applies to property damage [2].
Untraced drivers (Untraced Drivers Agreement). Where the tortfeasor cannot be identified (hit-and-run, no number plate visible, no witnesses), the victim applies directly to the MIB. The MIB investigates the application and, if satisfied that the claim falls within the agreement, pays damages calculated on tort principles. Property damage claims under the 2017 agreement are limited and require certain evidential conditions [3].
For motor insurance brokers and insurers, the MIB matters because membership of and the per-policy levy paid to the MIB is a built-in cost of every motor policy. For accident victims, the MIB provides a safety net of last resort: although recovery from the MIB is slower and subject to more conditions than recovery from a normal insurer, the alternative for uninsured-driver victims would be a personal action against an often impecunious defendant.
The MIB also operates the Motor Insurance Database and the askMID public lookup service, supports law enforcement by providing the data underpinning ANPR uninsured-vehicle detection, and operates the Insurance Fraud Bureau (IFB) which coordinates industry action against organised motor insurance fraud [1].
The MIB’s role is broader than its compensation function. Its principal activities include:
Equivalent bodies in other EEA states (the Bureau Central Français, the Verkehrsopferhilfe in Germany, the Consorcio de Compensación de Seguros in Spain) perform similar functions under the Sixth Motor Insurance Directive framework.
An illustrative example: a pedestrian is struck and seriously injured by a car that fails to stop. The vehicle’s registration is partially recorded by a witness; police investigation does not identify the driver. The pedestrian is left with serious injuries and unable to work.
The pedestrian instructs solicitors who lodge a claim with the MIB under the Untraced Drivers Agreement [3]. The MIB investigates, accepts that the claim falls within the agreement, and after medical evidence and prognosis are obtained settles the claim at £180,000 representing general damages and quantified loss of earnings on tort principles.
In a separate scenario, a driver who knows they are uninsured collides with a third-party vehicle, causing £8,000 of damage. The third party sues the driver and joins the MIB. The MIB satisfies the judgment under the Uninsured Drivers Agreement [2], paying £7,700 (the £8,000 award less the £300 property damage excess). The MIB exercises its rights of recovery against the uninsured driver. Figures are illustrative only.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-05. Next review: 2026-12-05.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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