MOTOR INSURERS’ BUREAU (MIB)
Protection and Compensation Fund
The Protection and Compensation Fund (PCF) was previously known as the Security Fund. This was originally established in 1986.
The Motor Insurers’ Bureau
The Motor Insurers’ Bureau (MIB) was established in 1986 and comprises all the insurers that are licensed to transact motor insurance business in Malta. Membership of the Bureau is compulsory at law for these insurers.The MIB acts as the insurer of last resort to compensate third party accident victims of negligent uninsured or untraced drivers. The MIB does not compensate victims who have already been compensated from another source.
When the damages are caused by uninsured drivers, MIB covers both the both the damage for physical injury (including death) and/or property damage sustained.
- Ineffective Policies – Breach of a Policy Condition by the Insured
If there is an insurance policy in force which is however ineffective due to a breach of a policy condition, the insurer who issued this policy must still handle the relative third party claims.
An insurer will handle such claims not out of a duty arising from the policy, but because he has undertaken with the MIB to act as if he were the insurer – to act as ‘insurer concerned’.
This means that in this manner, a victim of an accident will not be deprived of third party liability cover, notwithstanding the presence of certain conditions which would otherwise invalidate the relative policy. However, the insurer will be able to recover any payments which he has effected to the victim from the policyholder.
- No insurance cover
If the driver who is responsible for the accident has not bothered to buy insurance cover, claims for damages cannot be addressed to any insurer. A remedy has to be sought from MIB, which is required to handle and settle the claim to the third party in respect of physical injury and / or property damage endured.
However, the MIB will be entitled to recover any such payments from the uninsured driver. Property claims are only considered if the accident occurred on or after 1st May 2004, and are subject to a €466 excess.
If an accident is caused by an untraced driver, the MIB will handle and settle the claim to the third party victims of “hit and run” motorists in respect of physical injury and / or death sustained.
The compensation that is payable will relate solely to physical injuries or death and will be reduced to 80% which would otherwise have been so payable.