MIB members back mutualisation of terror risks


Members of the Motor Insurers’ Bureau (MIB) have voted to mutualise the risks associated with terrorism claims.

Going forward, the UK motor insurance industry-funded MIB will handle and pay the claims from victims involved in a terrorist event where a vehicle is used to kill or injure.

MIB already deals with the claims from victims involved in uninsured and ‘hit and run’ accidents. The bureau will now directly handle compensation for victims of vehicle-related terrorist events that take place on or after 1 January 2019.

More than 75% of UK motor insurers voted for the change, following a 28-day ballot that closed on 19 July.

As a result, Article 75, the relevant element within the bureau’s Articles of Association, has changed to bring these within the scope of the claims that the bureau pays.

This follows a consultation earlier this year in which MIB was asked to determine the level of support across the market for a change to be made so that the liability of the Article 75 insurer moved to MIB. The bureau added that it may explore the possibility of reinsuring some of the liability.

Dominic Clayden, chief executive of the bureau, commented: “Those who are innocently caught up in events where terrorists drive vehicles into people to injure and kill, can rely on MIB to pay and handle their motor related claims for these terrible events.”

Steve Maddock, chairman of MIB and chief operating officer at Direct Line Group, said: “The motor insurance market has clearly signalled that it was right to consider if individual insurers or the market as a whole carry the risks associated with motor claims arising from terrorist attacks.”

“The outcome of the vote indicates strong support to mutualise the risk and enable MIB to act in the event there are further terrorist activities. It is a good outcome for the industry and the public and one which is supported by the Department of Transport.”

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Mark Dugdale is the editor of Claims Media. Mark welcomes articles, letters or feedback from readers and can be reached via mark.dugdale@barkerbrooks.co.uk