21 February 2020Insurance

Court judgement could lead MIB to urge amendment to the Road Traffic Act

The Motor Insurers Bureau could challenge the government into amending the road traffic act following the Supreme Court’s rejection of its application to appeal against the Court of Appeal decision to uphold the High Court judgment in MIB v Lewis, which extended the liability of the MIB by compelling it to meet claims for uninsured motor accidents which occur on private land. That is the view of Mark Hemsted, member of the Forum of Insurance Lawyers and Partner at Clyde & Co.

Commenting on the decision, he said: “This decision reiterates the extension of the obligations of the MIB beyond those within the RTA and within its own Articles of Association. The MIB may now seek to challenge the Government into amending the Road Traffic Act. In the continued absence of any indication that the Government intends on amending the RTA, it would be unsurprising if the MIB does not make efforts to amend its Articles to reflect the changes brought about this decision.”

Lord Justice Flaux in the Court of Appeal stated that the issues brought about by this decision could be resolved "by amendment to the RTA and/or the MIB Articles of Association".

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