www.mib.org.uk paul ryman-tubb acii. chartered insurer date: september 2015 motor insurers’ bureau...

www.mib.org.uk

Paul Ryman-Tubb ACII. Chartered Insurer

Date: September 2015

Motor Insurers’ BureauUpdate and current challenges

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Gibraltar September 2015

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Our Mission

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MIB Services

Non MIB Managed Services

MIB Claim Services

MIB Non-Claim Services

National Guarantee

Fund

UK Green Card Bureau

UKIC

UK Compensation

Body

Uninsured Drivers Agreement

Untraced Drivers Agreement

askCUE.co.uk

Uninsured Driving

Police Services

Police Helpline

Continuous Insurance

Enforcement (CIE)

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Total cost of uninsured motoring:

Total UK vehicles:

Number of uninsured vehicles:

Injured victims

Deaths

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Uninsured driving in numbers

£400 million

38 million

1 million

29,000

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CIE

• Launched in June 2011

• 2.3 million letters issued

• More than 120,000 successful prosecutions in court

• More than 700,000 Fixed Penalty Notices

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What are the results?

Police Helpline total enquiries:

2007: 34,0002008: 80,0002009: 112,0002010: 123,5002011: 161,0002012: 189,0002013: 195,0002014: 127,000

Roadside support for every officerSun-Thurs: 7am-2am; Fri-Sat: 7am-3am0800 999 4165https://www.mibpolice.org.uk

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What are the results?

Changing uninsured driving together

Uninsured vehicles seized:2005: 45,0002006: 78,0002007: 150,0002008: 185,0002009: 180,0002010: 150,0002011: 140,0002012: 137,0002013: 135,0002014: 116,000

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

GF 37,701 36,357 34,306 33,235 29,971 28,376 27,635 25,244 22,181 22,569

GC 23,675 24,485 25,946 23,987 19,956 19,074 19,042 17,498 17,642 17,980

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

MIB New Claims 2005 - 2014

GF

GC


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Claims / Technical Update

• Deregulation Act 2015

• Uninsured Drivers’ Agreement 2015

• Vnuk

• 4th Directive

• Recent fraud successes

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Deregulation Act


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Background

• Paper was ‘king’• Enforcement pre MID• S147 – Issue and surrender

• Delivery required• Surrender or be a criminal!• E-certificates and the “level playing field”

• S152 – Insurer obligations• Incentive to recover certificate• Alternatives to surrender

• Using MID – the world moved on…

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Background

• Life without certificates• Insurers response• The Deregulation Act• No more s147 obligations• S152 – cancel and end obligations• What about the MID?• A75 changes

• Removed “surrender bits”• Update the MID … properly

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The Act

• Which cases?

• The Deregulation Act 2015 (Commencement No.1 and Transitional and Saving Provisions) (Amendment) Order 2015

• 30 June 2015 is the magic date

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The new world

• RTA now simplified• A75 follows and adds MID requirement• In law – cancel and end obligation• In A75 – cancel and update MID

• Final thought …• Cancel v avoid – new dynamic

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New MIB Agreement 2015

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New MIB Agreement 2015

As a result –

•Simplified

•Modernised

•Incorporated supplementary

•Legal changes

•New look and feel!


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Uninsured Drivers’ Agreement

Principle changes

•Simplified notice provisions

OUT•3 pages of notice clauses

IN•1 Clause (half page)•Must join MIB

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Principle changes

• Passenger Knowledge

Old clause 6(1)(e)(i)+(ii) new clause 8

The 1999 wording “ought to have known” has been replaced by “had reason to believe” [White v White]

The exclusion relating to passenger knowledge of use in furtherance of a crime, is deleted as a result of [Delaney v Pickett]

8(4) – Deceased’s Knowledge counts not the dependants knowledge [Phillips v Rafiq]

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Principle changes

• Supplementary agreement inclusion

• The formal incorporation of the £1m property damage limit from the Supplementary Agreement 2008

• How to apply limit

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• Other sources of recovery

Old clause 6(1)(c) new clause 6

If the claimant has other insurance that covers the loss the MIB are not liable to pay.

This applies even if the claimant does not claim or claims too late under his own policy.

• Simpler wording

• Impacts for claimants / credit repairers

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Principle changes


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Principles changes

• Conditional assignment requirement

New clause 15(b)

• Recognising common practice

• Don’t pay without one

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Principle changes

• Uncoupled trailers• Why?

New clause 1(4)

• Excludes acts of Terrorism

New clause 9

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Principle changes

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• Ensure a claimant is not able to claim from MIB, when their claim is precluded against their insurer by virtue of S151(8) of RTA 1988

New clause 10

See Churchill v Fitzgerald & Wilkinson and others


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Principle changes

• Disputes heard by arbitrator rather than Secretary of State

New clause 17• Rarely, if ever used• Relates to:

• Information requested by MIB under Clause 12

• MIB requirements in relation to pursuing another party – Clause 14

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Untraced 5th Supplementary Agreement

Overview of changes

The Untraced supplementary Agreement deals with –

•Clause 5(1)(g), 5(4)(c) and clause 6 are deleted

•Amended clauses

• Clause 5(1)(c) – Travelling in a vehicle is a furtherance of a crime

• Clause 5(1)(e) – other sources of recovery

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Vnuk


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UK legislative background

• “a person must not use a vehicle on a road or other public place … “ (s143 RTA 1988)

• “Motor vehicle means … a mechanically propelled vehicle intended or adapted for use on roads” (s185 RTA 1988)

• Vehicles owned by various bodies derogated (s144 RTA 1988)

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Directive 2009/103/EC

• “Vehicle means any motor vehicle intended for travel on land and propelled by mechanical power but not running on rails, and any trailer whether or not coupled” (Article 1.1)

• Member states required to have compulsory insurance in respect of the use of vehicles normally based in its territory (Article 3)

• Derogations allowed in respect of certain bodies or vehicles subject to safeguards (Article 5.1&2)

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Damijan Vnuk

• Storing bales of hay in the loft of a barn

• On private land – a farm

• Tractor / trailer reversing – hit ladder – Mr. V falls and is injured

• Insurer refuses to pay – tractor not a means of transport

• Referred to CJEU

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Damijan Vnuk

• Road use only?

“the Commission is of the opinion that that provision applies to the use of vehicles, whether as a means of transport or as machines, in any area, both public and private…” (Para 35)

• Motor vehicle?

- see definition in Directive – clearly yes

• “the concept of ‘use of vehicles’ in that article covers any use of a vehicle that is consistent with the normal function of that vehicle” [Para 59]

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Possible ramifications

• Vehicles within the Directive definition need to be:• Compulsorily insured

• Derogated (MIB to pick up claims)

• Change RTA, CSDPA, other legislation ?

• Change MIB Agreements?

• Lawn mowers, segways, childrens’ toys etc.?

• Insurance needs to be compulsory beyond just “road” and “public place”

• Air-side?

• Private land

• Other?

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Other points

• Motor racing – bangers etc. ?

• SORN – can this continue?

• Is EUI v Bristol Alliance wrong? – Are there “use” ramifications?

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4th Directive update

• The applicable law issue• Consistency and recovery

• HT – Claimants 2 – 0 MIB [Jacobs, Ireson]• Rome II – a game changer?• Further case in Supreme Court

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Recent fraud cases

Simon Rewell

•When is an untraced claim not an untraced claim?

•When it results in a 2 year suspended sentence + £600 fine

Chester bus case

•When is a whiplash not a whiplash?

•When the accident management company boss gets 6.5 years in jail

•“…in order to get more bang for their buck, the conspirators packed a scheduled bus with all their friends and relations and then a car gently collides with a bus” – (Mr Justice Blake)


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1 small dent = 23 Whiplash claims

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Current work programme

1. New website

2. New agreement in other jurisdictions including Gibraltar

3. New Untraced Drivers’ Agreement

4. Working with Police

5. Public awareness campaign

6. Roadmap for data use

7. Understanding ‘hit and run’

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Thank you for listening

Any Questions?

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www.mib.org.uk paul ryman-tubb acii. chartered insurer date: september 2015 motor insurers’ bureau...

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