header-logo header-logo

11 July 2019 / Nicholas Bevan
Issue: 7848 / Categories: Features , Insurance / reinsurance
printer mail-detail

The MIB’s surrogate state liability (Pt 1)

In the first instalment of a two-part feature, Dr Nicholas Bevan, reflects on the ruling in MIB v Lewis & its implications for the UK’s compulsory third-party motor insurance regime

  • Why the Motor Insurers’ Bureau is liable to compensate motor accident victims affected by the government’s failure to implement the European Motor Insurance Directive properly.

On 5 June the Court of Appeal delivered an important ruling in MIB v Lewis [2019] EWCA Civ 909 that has far-reaching implications for the UK’s compulsory third-party motor insurance regime. It is likely to have an adverse impact on the reserves of the motor insurers who supply this cover.

The ruling fixes the Motor Insurers’ Bureau (MIB) with a new form of liability, based on directly applicable European law, to compensate motor accident victims who have been wrongly denied a compensatory guarantee through compulsory insurance due to the government’s failure to implement fully Article 3 of the Sixth Motor Insurance Directive 2009/103 (the Directive).

The appellant

The appeal in Lewis was brought

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

NLJ Career Profile: Hugo Plowman, Mishcon de Reya

NLJ Career Profile: Hugo Plowman, Mishcon de Reya

From global fraud cases to fishing off-grid, Mishcon de Reya’s chair of dispute resolution Hugo Plowman discusses mentors, management switching off

Maguire Family Law—Jennifer Hudec, Ciara Florey, Alice Ferguson & Ruth Wynn

Maguire Family Law—Jennifer Hudec, Ciara Florey, Alice Ferguson & Ruth Wynn

Maguire Family Law announces partner promotion and new hires amid a record year for enquiries

Switalskis—Rebecca Parry & Hannah Gamble

Switalskis—Rebecca Parry & Hannah Gamble

Switalskis wills and probate team extends reach with two appointments

NEWS
Restrictions on workplace non-disclosure agreements could make settlements slower, more complex and more expensive when reforms expected in 2027 take effect
Private prosecutors face closer scrutiny under Crown Prosecution Service guidance designed to strengthen accountability and consistency when intervention is requested
Foreign states cannot necessarily claim immunity for cyber operations launched abroad against computers in Britain, following a divided Supreme Court ruling
Defendants who make unsupported complaints about their lawyers risk losing legal aid while confiscation proceedings continue without representation
Lawyers advising Russian clients face different sanctions restrictions across the UK, EU and US, despite their shared objective of increasing pressure on Russia
back-to-top-scroll