Motor Insurers’ Bureau

This case concerned the limitation period for the liability of the MIB to satisfy judgments against untraced drivers where the injured party is a minor. This scheme is intended to implement Council Directive (EEC) 84/5. Under the scheme, the limitation period is, in all cases, three years.

Held: the procedure relied on by the UK as implementing the Directive should be subject to a limitation period no less favourable than that which applies to the commencement of proceedings by minors for personal injury in tort against a traced driver (under s 28 of the Limitation Act 1980).

Although the Directive is, in principle, capable of having direct effect, the MIB is not an emanation of the state and so the Directive cannot be enforced directly against it. However, the UK is in sufficiently serious breach of the terms of the Directive so as to give rise, in principle, to a claim for damages.