Road Traffic Collisions caused by untraced drivers can leave injured people unsure what to do. If the driver responsible cannot be identified, it is not possible to bring a claim against the driver or their insurer.
In those circumstances, compensation may still be available through the Motor Insurers’ Bureau (MIB) under the Untraced Drivers’ Agreement 2017. Claims under this scheme are subject to strict requirements and failure to comply can result in a claim being refused.
What is the Motor Insurers’ Bureau (MIB)?
The MIB is funded by insurance companies and helps ensure that people injured in road crashes are not left without compensation because the driver responsible cannot be found.
What is the Untraced Drivers’ Agreement?
The Untraced Drivers’ Agreement sets out when injured individuals can claim compensation if the driver responsible cannot be identified. Typical scenarios include hit‑and‑run collisions.
Unlike a standard road traffic collision claim, proceedings are not issued against a driver or insurer. Instead, the claim is made directly to the MIB, which investigates the circumstances of the crash and determines whether compensation should be awarded under the terms of their Agreement.
The Agreement provides that the MIB will determine whether compensation should be awarded only if it is “satisfied, on the balance of probabilities, that the death, bodily injury or damage to property was caused in circumstances such that the unidentified person would …have been liable to pay damages...”
If the MIB rejects the claim, or makes an award which the claimant disputes, the Agreement provides for the matter to be resolved by Arbitration, making compliance with the Agreement important.
Issues and pitfalls in untraced driver claims
Reporting to police
The collision must be reported to the police “as soon as reasonably practicable” and in any event, within 14 days where personal injury is claimed.
Late reporting can lead to the MIB refusing the claim, unless a good explanation is given.
Notifying the MIB
The claimant must also notify the MIB of the claim within 14 days of the collision, or as soon as “reasonably practicable” after that.
The Agreement makes clear that the MIB “incurs no liability unless and until an application is submitted to MIB” and the claimant must provide information and documentation “as MIB may reasonably require for the purpose of determining any aspect of the claim.”
Any delay must be justified, which is relevant in serious injury cases where a claimant may be hospitalised or lack capacity in the immediate aftermath.
Evidence and cooperation
The Agreement requires a claimant to “give all such assistance as MIB may reasonably require to enable it to investigate the claim”, including making statements and cooperating with police enquiries. Claimants may be required to provide:
- A detailed account of how the accident occurred
- Medical evidence supporting the injuries claimed for
- Witness details and information about the location of the collision
- Vehicle damage or other evidence consistent with the account
Illegality and claimant conduct
Compensation under the Untraced Drivers’ Agreement may be refused where the claimant’s own unlawful conduct is sufficiently connected to the collision. This reflects the common law principle ‘ex turpi causa’, which prevents claimant’s from recovering under the Agreement where a claim arises directly from the claimant’s own illegal act.
The Agreement excludes liability where a claimant was voluntarily a passenger and “knew or had reason to believe that the vehicle had been stolen or unlawfully taken, or the vehicle was being used without there being in force …a contract of insurance.”
Importantly, the Agreement also makes clear that “the burden of proving that the claimant knew or had reason to believe” rests with the MIB.
In Cameron v Liverpool Victoria Insurance Co Ltd [2019] UKSC 6, the Supreme Court confirmed that the MIB scheme exists to protect innocent victims of road traffic collisions caused by untraced or uninsured drivers. Entitlement to compensation is governed strictly by the terms of the relevant Agreement and claims will be subject to the exclusions and limitations within the scheme.
Time limits
If a claimant wishes to dispute an MIB decision, arbitration must be commenced within three months of the decision. Arbitration is a process used instead of going to court, where an independent decision‑maker looks at the evidence and decides whether the MIB’s decision was right.
The Agreement provides that the arbitrator’s written decision is final and that disputes are determined solely by reference to written submissions, unless there is an oral hearing.
Failure to meet this deadline often leads to the claim being permanently barred from appeal.
Compensation limits
Personal injury compensation is available under the Agreement, but there are limits:
- Restrictions apply to property damage claims
- Interest is limited
- Future losses must be appropriately assessed where it is a high-value claim, including for future care, rehabilitation, accommodation and loss of earnings
Why untraced driver claims are challenging
The MIB applies the Untraced Drivers’ Agreement strictly and failing to meet any procedural requirements can cause a claim to fail. This risk is greater in cases involving life‑changing injuries, such as traumatic brain injury or spinal cord injury, where compensation is needed to support long‑term care and recovery.
Early, specialist legal advice can make a significant difference to the outcome of the claim.
How Moore Barlow can help
At Moore Barlow, we regularly act for individuals who have sustained serious injuries in road traffic collisions, including those involving untraced drivers.
We understand the complexities of the Untraced Drivers’ Agreement and the challenges faced by claimants with life‑changing injuries. A key part of our role is to manage the procedural and evidential aspects of the claim, allowing our clients to focus on recovery and rehabilitation.
We can assist by:
- Advising you on full compliance with the Agreement from the outset
- Managing correspondence, such as with the police and MIB
- Obtaining and presenting specialist medical and expert evidence
- Accurately assessing long‑term needs following brain or spinal injury
- Challenging adverse MIB decisions through arbitration where appropriate
- Negotiating a resolution of your claim
If you have suffered a serious injury or bereavement as a result of a road traffic collision caused by an untraced driver, please contact our team on 0800 157 7611 or email [email protected]
