What is the role of the Motor Insurance Bureau (MIB)?

The Motor Insurance Bureau (MIB) serves as a critical safety net within the UK motor insurance framework by functioning as the 'insurer' of last resort for untraceable drivers. This role is essential in ensuring that victims of accidents caused by uninsured or untraceable drivers can still receive compensation for damages and injuries.

The MIB was established to tackle the issue of uninsured driving and to protect the rights of victims who might otherwise have no recourse for financial recovery. When a motorist cannot be identified, such as in hit-and-run cases, or if the driver is uninsured, the MIB steps in to provide the necessary insurance cover for compensation without burdening the victims. This ensures that road safety measures are upheld and that legal obligations are met concerning motor insurance.

The other options, such as providing coverage for all drivers, acting solely as an insurer for high-risk drivers, or offering discounts for safe drivers, do not accurately represent the MIB's specific purpose and function within the established insurance system. The focus of the MIB remains firmly on addressing the challenges posed by uninsured and untraceable motorists to ensure justice and compensation for affected parties.