Uninsured and Untraced Drivers' Agreements (Review)

Wednesday 27th February 2013 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

The Department has today published a consultation paper on our review of the uninsured drivers’ agreement and untraced drivers’ agreements, which the Secretary of State for Transport is a party to with the Motor Insurers’ Bureau (MIB).

These agreements provide a framework within which the MIB investigates claims and provides compensation to victims of accidents occurring in Great Britain and caused by uninsured or untraced drivers. They are updated periodically to ensure that they are fully up to date and provide appropriate compensation for claimants in accordance with EU and UK law. The current uninsured and untraced agreements date from 13 August 1999 and 7 February 2003 respectively. We have worked with the MIB, as the other contracting party to the agreements, in this process of review to see what amendments are necessary.

We need to ensure these agreements are compliant with the law but also as straightforward as possible in their drafting—making them easy to understand and apply. It should be borne in mind that, ultimately, premium-paying motorists bear the costs of all claims investigated and paid under these agreements.

The consultation documents can be found on the Department’s website. An electronic copy has been lodged with the House Library.