The new agreement is much simpler, and the most important requirements are to submit an application in good shape to the MIB and join the MIB at the beginning of the action. NOTE: In the event of an accident on or after March 1, 2017, clauses 7 (vehicle damage) and 9 (terrorism) of the uninsured driver contract will be omitted in 2015. These changes mean that in the event of an accident from March 2017, the MIB will have to pay for damage to an uninsured driver`s car if another driver is not insured or «hit and run». The government has hinted that the change is necessary to comply with the EU`s Motor Liability Insurance Directive, but will reverse changes after Brexit. «The new agreement contains a number of exclusions and restrictions on the liability of compensation of the MIB that are not authorised by European law; Some of them were maintained or redeveloped by the UDA in 1999, so they have a broader effect, and others are quite new. The new agreement updates and clarifies the current position in the event of uninsured driver claims. For insurers, it offers a welcome regulation of the behaviour of applicants and clearer termination rules will help to understand and prepare for possible liability. Nicholas Bevan is undoubtedly the expert in this area and he has to say about the new agreement:- The new agreement still does not apply to those who enter a vehicle, knowing that it is not insured. However, evidence that the complainant knew that the vehicle was uninsured was withdrawn. Such claims are generally invoked in the MIB agreements, as it is not possible to take formal legal action, since the allegedly insulting motorist is not identifiable and therefore there is no legal entity that can take legal action. This week, the new Untraced Driver Agreement and the Uninsured Supplementary Driver Agreement came into force. Previous agreements continue to apply to incidents that occurred prior to March 1, 2017.
We look at the importance of the most important changes for auto insurers. This reflects the decision of the Delaney/Secretary of State Court of Appeal (2015). In this case, when the vehicle was used to promote a crime, the exclusion was considered contrary to European law and the Secretary of State was ordered to pay damages to Francovich.