Today (20 February 2019) the Supreme Court handed down judgment in the case of Cameron vs Liverpool Victoria Insurance Co Ltd (LV=) upholding the appeal made by the insurer, supported by MIB who intervened in the proceedings. This judgment sets aside the order made by the Court of Appeal in May 2017.

The case centred around the circumstances in which it is permissible to sue an unnamed defendant and called into question the role of the Untraced Drivers Agreement. MIB successfully applied to intervene in the Supreme Court to support LV= as it speaks with experience and authority about the Untraced Drivers Agreement.

MIB was concerned about the consequences if Untraced Drivers Agreement could be avoided and that as a consequence there would be an increased risk of fraudulent claims proceeding through the courts rather than being subjected to the neutral and transparent process conducted by MIB and as required through the Agreement.

Paul Ryman-Tubb, Chief Technical Officer at MIB, said: “MIB chose to support LV= in this case because we feared the consequences in terms of the increased opportunity for fraud and ultimately the increased costs borne by the motoring public if the previous Court of Appeal decision had stood. 

“Cases in which it is not possible to identify the driver at fault rightfully need to be dealt with under the MIB Untraced Drivers Agreement. This agreement between MIB and the Secretary of State contains appropriate and fair provisions to allow claims to be investigated and determined where there is no ‘at fault’ driver to provide another side of the story.”

Read the Supreme Court’s judgment in detail.

Background

MIB was established in 1946 as a not-for-profit organisation to pay compensation to innocent victims of uninsured and untraced ‘hit and run’ drivers. MIB’s handling of claims is governed by agreements with the Government.

Compensation is awarded under the Uninsured Drivers Agreement and the Untraced Drivers Agreement with the Government which set out that MIB’s remit is limited to circumstances where compulsory motor insurance should have been in place to comply with the law in accordance with the Road Traffic Act 1988.

Each year, MIB deals with claims from thousands of victims with the cost of those claims being funded by insurance premium-paying motorists through a levy charged to all UK motor insurers.