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Motor Insurers’ Bureau Update and current challenges

Paul Ryman-Tubb ACII. Chartered Insurer Date: September 2015. Gibraltar September 2015. Motor Insurers’ Bureau Update and current challenges. Our Mission. Gibraltar September 2015. Gibraltar September 2015. MIB Services. MIB Claim Services. MIB Non-Claim Services. Non MIB Managed

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Motor Insurers’ Bureau Update and current challenges

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  1. Paul Ryman-Tubb ACII. Chartered Insurer Date: September 2015 Gibraltar September 2015 Motor Insurers’ BureauUpdate and current challenges

  2. Our Mission Gibraltar September 2015

  3. Gibraltar September 2015 MIB Services MIB Claim Services MIB Non-Claim Services Non MIB Managed Services Uninsured Driving Uninsured Drivers Agreement National Guarantee Fund Police Services Untraced Drivers Agreement UK Green Card Bureau Police Helpline askCUE.co.uk UKIC Continuous Insurance Enforcement (CIE) UK Compensation Body

  4. Gibraltar September 2015 Uninsured driving in numbers Total cost of uninsured motoring: Total UK vehicles: Number of uninsured vehicles: Injured victims Deaths £400 million 38 million 1 million 29,000 120

  5. 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 Gibraltar September 2015

  6. Gibraltar September 2015

  7. What are the results? Police Helpline total enquiries: 2007: 34,000 2008: 80,000 2009: 112,000 2010: 123,500 2011: 161,000 2012: 189,000 2013: 195,000 2014: 127,000 Roadside support for every officer Sun-Thurs: 7am-2am; Fri-Sat: 7am-3am 0800 999 4165 https://www.mibpolice.org.uk Gibraltar September 2015

  8. What are the results? Changing uninsured driving together Gibraltar September 2015 • Uninsured vehicles seized: • 2005: 45,000 • 2006: 78,000 • 2007: 150,000 • 2008: 185,000 • 2009: 180,000 • 2010: 150,000 • 2011: 140,000 • 2012: 137,000 • 2013: 135,000 • 2014: 116,000

  9. Gibraltar September 2015

  10. Gibraltar September 2015

  11. Deregulation Act 2015 Uninsured Drivers’ Agreement 2015 Vnuk 4th Directive Recent fraud successes Gibraltar September 2015 Claims / Technical Update

  12. Gibraltar September 2015 Deregulation Act

  13. 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… Gibraltar September 2015 Background

  14. 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 Gibraltar September 2015 Background

  15. Which cases? The Deregulation Act 2015 (Commencement No.1 and Transitional and Saving Provisions) (Amendment) Order 2015 30 June 2015 is the magic date Gibraltar September 2015 The Act

  16. 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 Gibraltar September 2015 The new world

  17. Gibraltar September 2015 New MIB Agreement 2015

  18. As a result – Simplified Modernised Incorporated supplementary Legal changes New look and feel! Gibraltar September 2015 New MIB Agreement 2015

  19. Principle changes Simplified notice provisions OUT 3 pages of notice clauses IN 1 Clause (half page) Must join MIB Gibraltar September 2015 Uninsured Drivers’ Agreement

  20. 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] Gibraltar September 2015 Principle changes

  21. Supplementary agreement inclusion The formal incorporation of the £1m property damage limit from the Supplementary Agreement 2008 How to apply limit Gibraltar September 2015 Principle changes

  22. 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 Gibraltar September 2015 Principle changes

  23. Conditional assignment requirement New clause 15(b) Recognising common practice Don’t pay without one Gibraltar September 2015 Principles changes

  24. Uncoupled trailers Why? New clause 1(4) Excludes acts of Terrorism New clause 9 Gibraltar September 2015 Principle changes

  25. 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 Gibraltar September 2015 Principle changes

  26. 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 Gibraltar September 2015 Principle changes

  27. 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 Gibraltar September 2015 Untraced 5th Supplementary Agreement

  28. Gibraltar September 2015 Vnuk

  29. 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) Gibraltar September 2015

  30. 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) Gibraltar September 2015

  31. 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 Gibraltar September 2015

  32. 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] Gibraltar September 2015

  33. 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? Gibraltar September 2015

  34. Other points Motor racing – bangers etc. ? SORN – can this continue? Is EUI v Bristol Alliance wrong? – Are there “use” ramifications? Gibraltar September 2015

  35. The applicable law issue Consistency and recovery HT – Claimants 2 – 0 MIB [Jacobs, Ireson] Rome II – a game changer? Further case in Supreme Court Gibraltar September 2015 4th Directive update

  36. 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) Gibraltar September 2015 Recent fraud cases

  37. Gibraltar September 2015 1 small dent = 23 Whiplash claims

  38. New website New agreement in other jurisdictions including Gibraltar New Untraced Drivers’ Agreement Working with Police Public awareness campaign Roadmap for data use Understanding ‘hit and run’ Gibraltar September 2015 Current work programme

  39. Gibraltar September 2015

  40. Gibraltar September 2015

  41. Gibraltar September 2015

  42. Any Questions? Gibraltar September 2015 Thank you for listening

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