Uninsured Accident - Please Help

SHAFT

JohnFredrick wrote: »

Some info i found on a few insurance websites:

- The uninsured driver is to blame

In theory, at-fault uninsured drivers are personally responsible for all damages and personal injuries they cause.

In practice, people driving without insurance have few or no assets to meet these financial liabilities and the chance of successfully recovering damages from an uninsured driver is nearly zero.

So, where can you turn to reclaim uninsured damages?

- The Motor Insurers' Bureau

The Motor Insurers' Bureau (MIB) has been operating since 1946 and is funded by the UK's motor insurers and – by extension – insured, law-abiding motorists.

If you're involved in an accident with an uninsured vehicle and forced to claim on your own insurance, then the MIB will compensate your insurer for the costs of your claim. Once this compensation has been received, your insurer should reinstate your no-claims discount and cancel any corresponding premium increase.

The MIB pays out compensation to those who suffer personal injury or damage to their property as a result of accidents involving uninsured motor vehicles.

In effect, this agreement between the government and the MIB ensures that innocent victims of uninsured drivers don't lose out financially.

You're putting a lot of effort into this for your friend.

shaun_from_Africa wrote: »

The important word being "innocent".
Your friend was not innocent so he is still liable for any losses.

If there is an insurance policy in place that covers a vehicle and you drive that vehicle whilst not being entitled to and cause an accident, the insurers will still pay out any 3rd party liabilities.
However, they will then come after you to recompense them for the money they have lost.

The MIB are no different.
If they are required to pay out to an innocent driver because of an accident for which an uninsured driver was held liable for, they will then attempt to recover their money from that uninsured driver.

There is an innocent part involved unfortunately not the op or his friend.

Aretnap

JohnFredrick wrote: »

If you're involved in an accident with an uninsured vehicle and forced to claim on your own insurance, then the MIB will compensate your insurer for the costs of your claim. Once this compensation has been received, your insurer should reinstate your no-claims discount and cancel any corresponding premium increase.

Like a lot of copy which is churned out on the internet for search engine optimisation purposes, this part is just plain wrong. The MIB does not compensate insurance companies. Insurance companies are big boys; paying claims is what they do for a living; they can afford to absorb the cost of accidents involving uninsured drivers; they do not need an organisation like the MIB to bail them out. This is covered by Clause 6 of the MIB agreement, or see page 8 of the explanatory notes if you prefer plain English.

The MIB WILL act as an insurer of last resort, ie they will pay for losses which are not covered by any insurance policy. However as above that's small comfort to your friend as they will then seek to recover their costs from the uninsured driver responsible. Basically they exist to protect other people from the consequences of his uninsured driving; not to protect him from its consequences.

Car_54

JohnFredrick wrote: »

Hi Guys

Wondering if anyone would be able to advise, if you have nothing good to say kindly refrain from spamming.

I hope you have realised by now that there is nothing good to say.

SHAFT

[quote=[Deleted User];76327584]I hope you have realised by now that there is nothing good to say.[/QUOTE]

I beg to differ.

JohnFredrick wrote: »

He didnt realise the insurance was fake until the accident and when police came to the scene
Yes he got 6 points and a fine from police
He hasn’t got any assets and he hasn’t got a heavy income hence the idea of bankcruptcy

molerat

If it is a reasonably sized hire co I suspect their insurance is little more than TPF&T. Why would it need to be anything more ? If a car gets written off they go out and buy a new one, small money in the bigger picture. They factor this into their hire prices along with all those extra insurance add ons they sell just going into the pot. If another party causes the damage they will go after them / their insurer for any losses. The hire co insurer will not be involved, purely the hire co v 3rd party and, as there is no 3rd party insurer, MIB. Same as any other TPF&T insured motorist could.

TooManyPoints

If it is a reasonably sized hire co I suspect their insurance is little more than TPF&T.

It seems possibly not:

Anyway, months later a court letter has arrived from the hire car’s insurance trying to claim full costs for the damage on the car he hit into,

Toomanypoints I have explained why the insurance company have included their outlay in my other posts. It's all completely standard in litigation.

Yes I understand that. What I don't understand is why the MIB has been named as a co-defendant in the Insurer's court action. As far as I am aware (and it seems to be confirmed by other posts here) the MIB does not compensate insurance companies who have been unable to reclaim their outlay from an uninsured Third Party.

MovingForwards

The MIB will settle the uninsured losses, when the CCJ has been obtained and not settled by the friend. They will the pursue the friend for the money.

The insurance company will pursue the friend for their outlay due to having a CCJ against the friend.

Litigation can only be raised once for an action, therefore everything is included.

SHAFT

molerat wrote: »

If it is a reasonably sized hire co I suspect their insurance is little more than TPF&T. Why would it need to be anything more ? If a car gets written off they go out and buy a new one, small money in the bigger picture. They factor this into their hire prices along with all those extra insurance add ons they sell just going into the pot. If another party causes the damage they will go after them / their insurer for any losses. The hire co insurer will not be involved, purely the hire co v 3rd party and, as there is no 3rd party insurer, MIB. Same as any other TPF&T insured motorist could.

In case the person hiring it writes it off.

JohnFredrick

On the claim form it says:
The claimant is a prestige hire company. On the date of accident the claimant had hired out the vehicle. The first defendant collided into the rear of the claimant vehicle. The first defendant was not insured at the time of accident and therefore the second defendant is bring pursued under their uninsured losses agreement.

Also on the county court money claims centre letter it states:
- Net settlement figure is XXXX, the claimant hereby claims that sum from the first defendant and/or second defendant (following consolidation)
- a decleration that pursuant to the MIB agreement, the second defendant is liable to pay to or to the satisfaction of the claimant the sum of payable under such judgement including assessed costs.

Sounds to me MIB will pay, but like most of you said MIB will probably claim it from my friend later. He doesnt earn much and hardly left with anything end of the month. So what can they exactly do? File for his bankcruptcy or be ok with £50 a month for the rest of his life?

debtdebt

How is that figure made up? What is the breakdown?

That language and grammar is terrible. Sounds like they're trying it on.