Compensation of Victims of Uninsured Drivers of Motor Vehicles: Agreement between the Home Affairs Committee and the Motor Insurers' Bureau

COMPENSATION OF VICTIMS OF UNINSURED DRIVERS OF MOTOR VEHICLES: AGREEMENT BETWEEN THE HOME AFFAIRS COMMITTEE AND THE MOTOR INSURERS' BUREAU

_______________

Lodged au Greffe on 20th June 2000 by the Home Affairs Committee

______________________________

STATES OF JERSEY

STATES GREFFE

180             2 0 0 0    P . 9 7          

Price code: C

PROPOSITION

THE STATES are asked to decide whether they are of opinion -

  to r e fe r to their Acts, dated 12th June 1990 and 18th February 1997 and to approve the terms of a revised draft

Agreement between the Home Affairs Committee and the Motor Insurers Bureau with regard to the compensation of victims of uninsured drivers of motor vehicles and to order the printing and publication thereof.

HOME AFFAIRS COMMITTEE

Note: T he Agreement will replace that concluded in 1990 between the same parties which was amended in 1997.

Report

1. I n a c cordance with an agreement madeon 31st December 1945 between the Minister of War Transport and insurers transacting compulsory motor insurance business in Great Britain, a corporation called the "Motor Insurer's Bureau" ("MIB") was incorporated in England and Wales.
2. O n 2 6 th January 1954, the MIB entered into an agreement with the Defence Committee of the States ofJersey[1] to give effect as from 26th January 1954 to the principle recommended in July 1937 by the Departmental Committee under Sir Felix Cassell (Cmd. 5528) to secure compensation to third party victims of road accidents in cases where, notwithstanding legislative provisions relating to compulsory insurance, the victim is deprived of compensation by the absence of insurance, orof effective insurance.
3. T h e a greement of 26th January 1954 has been replaced by a series of agreements[2] between the MIB and the Defence Committee culminating in the present agreement madeon 15th June 1990 (the present agreement) which is recorded in R & O 8069.
4. T h e p resent agreement which will expire on 25th October 2000, mirrors an agreement (the uninsured driver's agreement) which was entered into between MIB and the Secretary of State for Transport on 21st December 1988 with the modifications necessary to reflect Jersey's law and court procedures.
5. O n 1 3 th August 1999 a new uninsured driver's agreement was entered into between the MIB and the Secretary of State for the Environment, Transport and the Regions which supersedes the uninsured driver's agreement dated 31st December 1988.
6. T h e M IB wish to enter into a new agreement with the Home Affairs Committee of the States of Jersey (the Committee) a copyof which agreement is set out below.
7. T h e n ew agreement is based upon the new uninsured driver's agreement between the Secretary of State for the Environment, Transport and the Regions and the MIB dated 13th August 1999 with necessary modifications and adaptations to reflect the Island's law and court procedures.
8. A lth o ugh not forming part of the new Agreement, guidance notes (a copyof which appear immediately after the Agreement) would be published for the benefit of victims of road traffic accidents to explain the circumstances in which a claim against the MIB under the new Agreement may arise and how a claim is made under the new agreement to the MIB. The guidance notes have also been modified to reflect to the local laws and court procedures.
9. T h e M IB are also willing to enter into an untraced drivers agreement with the Committee. There is no such agreement in place in Jersey. The Secretary of State for the Environment and the MIB are in the process of drawing up a new agreement to replace the untraced drivers agreement entered into between those parties on 14th June 1996. The new untraced drivers' agreement (which is expected to be concluded by the end of August 2000) will be fully compliant with the European Convention on Human Rights (ECHR). The Committee intend to enter into an untraced drivers' agreement (based on the ECHR compliant untraced drivers' agreement between the Secretary of State for the Environment and the MIB which is expected to be concluded by the end of August 2000) and will bring a proposition to the States in due course to approve the agreement.

APPENDIX

T H IS A GREEMENT is made the _______________ day of ___________ 2000 between the HOME AFFAIRS COMMITTEE OF THE STATES OF JERSEY (hereinafter referred to as "the Committee") and the MOTOR INSURERS' BUREAU, whose registered office is at 152 Silbury Boulevard, Milton Keynes MK9 1NB (hereinafter referred to as "MIB") and is supplemental to an agreement dated 26th January 1954 ("the Principal Agreement"), between the Defence Committee of the States of Jersey and the MIB.

  T h a t A  greement was replaced by an Agreement which operated in respect of accidents occurring on or after 1st August 1975 which, in turn was replaced by an Agreement which operates in respect of accidents occurring on or after 1st July 1990.

  T h e A g reement which operates in respect of accidents occurring on or after 1st July 1990 has now been replaced by the following Agreement which operates in respect of accidents occurring on or after _____________________ 2000.

IT IS HEREBY AGREED AS FOLLOWS -

INTERPRETATION General definitions

1 . I n this Agreement, unless the context otherwise requires, the following expressions have the following meanings -

"th  e L a w" means the Motor Traffic (Third Party Insurance) (Jersey) Law 1948, as amended;

"1 9 9 0 A greement" means the Agreement made on 15th June 1990 between the Defence Committee of the States of

Jersey and MIB;

" b an k h oliday" means a day which is, or is to be observed as, a bank holiday under the Public Holidays and Bank

Holidays (Jersey) Law 1951 (Amendment) (Jersey) Law 1956, as amended.

" cl a im a nt" means a person who has commenced or who proposes to commence relevant proceedings and has made

an application under this Agreement in respect thereof;

"c o n tr ac t of insurance" means a policy of insurance or a security covering a relevant liability; "c r im e " in clause 6(1)(e)(iii) means a crime or délit

"in  s u re r " includes the giver of a security;

"M  I B ' s obligation" means the obligation contained in clause 5;

"p r o p e r ty" means any property whether movable or immovable;

" re le v a nt liability" means a liability in respect of which a contract of insurance must be in force to comply with

Article 2 of the Law;

" re le v a nt proceedings" means proceedings in respect of a relevant liability (and "commencement", in relation to

such proceedings means the date on which an Order of Justice, Summons or other document initiating the proceedings is served on the Defendant);

"r e le v a n t sum" means a sum payable or remaining payable under an unsatisfied judgment, including - (a ) a n amount payable or remaining payable in respect of interest on that sum, and

(b ) e ith er the whole of the costs (whether taxed or not) awarded by the Court as part of that judgment or, where

the judgment includes an award in respect of a liability which is not a relevant liability, such proportion of those costs as the relevant liability bears to the total sum awarded under the judgment;

" s p ec if ied excess" means £300 or such other sum as may from time to time be agreed in writing between the

Committee and MIB;

" u n s ati sfied judgment" means a judgment or order (by whatever name called) in respect of a relevant liability

which has not been satisfied in full within seven days from the date upon which the claimant became entitled to enforce it.

Meaning of references

2 .- (1 ) Sa ve as otherwise herein provided, the Interpretation (Jersey) Law 1954 shall apply for the interpretation of this Agreement as it applies for the interpretation of an enactment.

(2 ) Wh ere, under this Agreement, something is required to be done -

  (a ) w ithin a specified period after or from the happening of a particular event, the period begins on the day after

the happening of that event;

  (b ) w ithin or not less than a specified period before a particular event, the period ends on the day immediately

before the happening of that event.

(3 ) Wh ere, apart from this paragraph, the period in question, being a period of seven days or less, would include a Saturday, Sunday or bank holiday or Christmas Day or Good Friday, that day shall be excluded.

(4 ) Sa ve where expressly otherwise provided, a reference in this Agreement to a numbered clause is a reference to the clause bearing that number in this Agreement and a reference to a numbered paragraph is a reference to a paragraph bearing that number in the clause in which the reference occurs.

(5 ) I n this Agreement -

  (a ) a reference (however framed) to the doing of any act or thing by or the happening of any event in relation to

the claimant includes a reference to the doing of that act or thing by or the happening of that event in relation to a Solicitor, an Advocate or other person acting on his behalf, and

  (b ) a requirement to give notice to, or to serve documents upon, MIB or an insurer mentioned in clause 9(1)(a)

shall be satisfied by the giving of the notice to, or the service of the documents upon, a Solicitor or Advocate acting on its behalf in the manner provided for.

Claimants not of full age or capacity

3 . Wh ere, under and in accordance with this Agreement -

  (a ) a n y act or thing is done to or by a Solicitor, an Advocate or other person acting on behalf of a claimant,

  ( b ) a ny decision is made by or in respect of a Solicitor, an Advocate or other person acting on behalf of a

claimant, or

(c ) a n y sum is paid to a Solicitor, an Advocate or other person acting on behalf of a claimant,

then, whatever may be the age or other circumstances affecting the capacity of the claimant, that act, thing, decision or sum shall be treated as if it had been done to or by, or made in respect of or paid to a claimant of full age and capacity.

PRINCIPAL TERMS Duration of Agreement

4 .- ( 1 ) T his Agreement shall come into force on _____________ _____________ 2000 in relation to accidents occurring on or after that date and, save as provided by clause 23, the 1990 Agreement shall cease and determine immediately before that date.

(2 ) T his Agreement may be determined by the Committee or by MIB giving to the other not less than twelve months' notice in writing but without prejudice to its continued operation in respect of accidents occurring before the date of

termination.

MIB's obligation to satisfy compensation claims

5 .- (1 ) Su bject to clauses 6 to 16, if a claimant has obtained against any person in a Court in the Bailiwick of Jersey a judgment which is an unsatisfied judgment then MIB will pay the relevant sum to, or to the satisfaction of, the claimant or will cause the same to be so paid.

(2 ) Pa ragraph (1) applies whether or not the person liable to satisfy the judgment is in fact covered by a contract of insurance and whatever may be the cause of his failure to satisfy the judgment.

EXCEPTIONS TO AGREEMENT

6 .- ( 1 ) Clause 5 does not apply in the case of an application made in respect of a claim of any of the following descriptions (and, where part only of a claim satisfies such a description, clause 5 does not apply to that part) -

  (a ) a claim arising out of a relevant liability incurred by the user of a vehicle owned by or in the possession of the

Crown, the States of Jersey or any parochial authority, unless -

   (i ) re s p o n s ibility for the existence of a contract of insurance under the Law in relation to that vehicle had

been undertaken by some other person (whether or not the person liable was in fact covered by a contract of insurance), or

(ii ) th e re le  vant liability was in fact covered by a contract of insurance;

  (b ) a claim arising out of the use of a vehicle which is not required to be covered by a contract of insurance by

virtue of paragraph (5) or paragraph (6) of Article 2 of the Law unless the use is in fact covered by such a contract;

(c ) a claim by, or for the benefit of, a person ("the beneficiary") other than the person suffering death, injury or

other damage which is made either -

(i ) in re s p e ct of a cause of action or a judgment which has been assigned to the beneficiary, or (ii ) p u rs u a n t to a right of subrogation or contractual or other right belonging to the beneficiary;

  ( d ) a claim in respect of damage to a motor vehicle or losses arising therefrom where, at the time when the

damage to it was sustained -

   (i ) th e r e w  as not in force in relation to the use of that vehicle such a contract of insurance as is required by

the Law, and

(ii ) th e cla im ant either knew or ought to have known that that was the case;

  (e ) a claim which is made in respect of a relevant liability described in paragraph (2) by a claimant who, at the

time of the use giving rise to the relevant liability was voluntarily allowing himself to be carried in the vehicle and, either before the commencement of his journey in the vehicle or after such commencement if he could reasonably be expected to have alighted from it, knew or ought to have known that -

(i ) th e v e h i cle had been stolen or unlawfully taken,

( ii ) th e v e hicle was being used without there being in force in relation to its use such a contract of

insurance as would comply with the Law,

(ii i )  th e v eh i cle was being used in the course or furtherance of a crime,

(iv  )  th e v e h i cle was being used as a means of escape from, or avoidance of, lawful apprehension.

  (2 ) T he relevant liability referred to in paragraph (1)(e) is a liability incurred by the owner or registered keeper or a person using the vehicle in which the claimant was being carried.

  (3 ) T he burden of proving that the claimant knew or ought to have known of any matter set out in paragraph (1) (e) shall be on MIB but, in the absence of evidence to the contrary, proof by MIB of any of the following matters shall be taken as proof of the claimant's knowledge of the matter set out in paragraph (1)(e)(ii) -

(a ) th at the claimant was the owner or registered keeper of the vehicle or had caused or permitted its use;

  (b ) th at the claimant knew the vehicle was being used by a person who was below the minimum age at which he

could be granted a licence authorising the driving of a vehicle of that class;

( c) th at the claimant knew that the person driving the vehicle was disqualified from holding or obtaining a

driving licence;

( d ) th at the claimant knew that the user of the vehicle was neither its owner nor registered keeper nor an

employee of the owner or registered keeper nor the owner or registered keeper of any other vehicle.

  (4 ) K nowledge which the claimant has or ought to have for the purposes of paragraph (1)(e) includes knowledge of matters which he could reasonably be expected to have been aware of had he not been under the self-induced influence of drink or drugs.

(5 ) Fo r the purposes of this clause -

  (a ) a vehicle which has been unlawfully removed from the possession of the Crown, the States of Jersey or any

parochial authority shall be taken to continue in that possession whilst it is kept so removed,

  (b ) r e ferences to a person being carried in a vehicle include references to his being carried upon, entering, getting

on to and alighting from the vehicle, and

(c ) " owner", in relation to a vehicle which is the subject of a hiring agreement or a hire-purchase agreement,

means the person in possession of the vehicle under that agreement.

CONDITIONS PRECEDENT TO MIB'S OBLIGATION Form of application

7 .- ( 1) M IB shall incur no liability under MIB's obligation unless an application is made to the person specified in clause 9(1) -

(a ) in such form,

(b ) g iv ing such information about the relevant proceedings and other matters relevant to this Agreement, and (c ) a c companied by such documents as MIB may reasonably require.

  (2 ) Wh  ere an application is signed by a person who is neither the claimant nor a Solicitor or an Advocate acting on his behalf MIB may refuse to accept the application (and shall incur no liability under MIB's obligation) until it is reasonably satisfied that, having regard to the status of the signatory and his relationship to the claimant, the claimant is fully aware of the contents and effect of the application but subject thereto MIB shall not refuse to accept such an application by reason only that it is signed by a person other than the claimant or his Solicitor.

Service of notices etc.

  8 . A ny notice required to be given or documents to be supplied to MIB pursuant to clauses 9 to 11 of this Agreement shall be sufficiently given or supplied only if sent by facsimile transmission or by Registered or Recorded Delivery post to MIB's registered office for the time being and delivery shall be proved by the production of a facsimile transmission report produced by the sender's facsimile machine or an appropriate postal receipt.

Notice of relevant proceedings

9 .- ( 1 ) MIB shall incur no liability under MIB's obligation unless proper notice of the bringing of the relevant proceedings has been given by the claimant not later than fourteen days after the commencement of those proceedings -

  (a ) in the case of proceedings in respect of a relevant liability which is covered by a contract of insurance with an

insurer whose identity can be ascertained, to that insurer;

(b ) in any other case, to MIB.

(2 ) I n this clause "proper notice" means, except in so far as any part of such information or any copy document or other thing has already been supplied under clause 7 -

(a ) n o tice in writing that proceedings have been commenced by Order of Justice, Summons or other means,

  (b ) a copy of the Order of Justice, Summons or other document initiating the proceedings and a copy of the

record of service,

  (c ) a copy or details of any insurance policy providing benefits in the case of the death, bodily injury or damage

to property to which the proceedings relate where the claimant is the insured party and the benefits are available to him,

  (d ) c o pies of all correspondence in the possession of the claimant or (as the case may be) his Solicitor, Advocate

or agent to or from the Defendant or (as the case may be) his Solicitor, Advocate, insurers or agent which is relevant to -

(i ) th e d e a th , bodily injury or damage for which the Defendant is alleged to be responsible, or

   (ii  ) a n y c o n tract of insurance which covers, or which may or has been alleged to cover, liability for such

death, injury or damage the benefit of which is, or is claimed to be, available to Defendant,

(e ) Su bject to paragraph (3), a copy of the Particulars of Claim filed where an action commenced by way of

Summons has been placed on the pending list or sent to proof whether or not filed with the Judicial Greffe or Petty Debts Court Greffe as the case may be; and

  (f ) a copy of all other documents which are required under the appropriate rules of procedure to be served on a

Defendant with the Order of Justice, Summons or other document initiating the proceedings or with the Particulars of Claim,

(g ) s u ch other information about the relevant proceedings as MIB may reasonably specify.

  (3 ) I f , in the case of proceedings commenced by way of Summons which had been placed on the pending list or sent to proof, the particulars of Claim have not been filed within fourteen days after the commencement of proceedings paragraph (2)(e) shall be sufficiently complied with if a copy thereof is served on MIB not later than seven days after the Particulars of Claim are filed with the Judicial Greffe or Petty Debts Court Greffe as the case may be.

Further information

1 0 .- (1 ) MIB shall incur no liability under MIB's obligation unless the claimant has, not later than seven days after the occurrence of any of the following events, namely -

(a ) th e filing of a defence in the relevant proceedings,

  ( b ) a ny amendment to the Order of Justice or Particulars of Claim or any amendment of or addition to any

schedule or other document required to be served therewith, and

(c ) e i ther -

(i ) th e s e ttin g down of the case for hearing, or (ii ) a d a te fo r the trial being fixed;

g iv e n n o tic e in writing of the date of that event to the person specified in clause 9(1) and has, in the case of

the filing of a defence or an amendment of the Order of Justice or to the Particulars of Claim or any amendment of or addition to any schedule or other document required to be served therewith, supplied a copy thereof to that person.

  (2 ) M IB shall incur no liability under MIB's obligation unless the claimant furnishes to the person specified in clause 9(1) within a reasonable time after being required to do so such further information and documents in support of his claim as MIB may reasonably require notwithstanding that the claimant may have complied with clause 7(1).

Notice of intention to apply for judgment

  1 1 .- ( 1 ) MIB shall incur no liability under MIB's obligation unless the claimant has, after commencement of the relevant proceedings and not less than thirty-five days before the appropriate date, given notice in writing to the person specified in clause 9(1) of his intention to apply for judgment in the relevant proceedings.

(2 ) I n this clause, "the appropriate date" means the date when the application for judgment is made.

Article 10 of the Law

  1 2 . M  IB shall incur no liability under MIB's obligation unless the claimant has as soon as reasonably practicable -

  (a ) d e manded the information and, where appropriate, the particulars specified in Article 10 of the Law; and

(b ) if the person of whom the demand is made fails to comply with the provisions of that Article -

   (i ) m a d e a formal complaint to a police officer in respect of such failure; and

   (ii ) u se d a ll reasonable endeavours to obtain the name and address of the registered keeper of the vehicle,

o r, if s o r e q u ir ed by MIB, has authorised MIB to take such steps on his behalf.

Prosecution of proceedings

1 3 . M IB shall incur no liability under MIB's obligation -

  (a ) u n less the claimant has, if so required by MIB and having been granted a full indemnity by MIB as to costs,

taken all reasonable steps to obtain judgment against every person who may be liable (including any person who may be vicariously liable) in respect of the injury or death or damage to property, or

  (b ) if the claimant, upon being requested to do so by MIB, refuses to consent to MIB being joined as a party to

the relevant proceedings.

Assignment of judgment and undertakings

1 4 . M IB shall incur no liability under MIB's obligation unless the claimant has -

  (a ) a s signed to MIB or its nominee the unsatisfied judgment, whether or not that judgment includes an amount in

respect of a liability other than a relevant liability, and any order for costs made in the relevant proceedings, and

(b ) u n dertaken to repay to MIB any sum paid to him -

   (i ) b y M  I B in discharge of MIB's obligation if the judgment is subsequently set aside either as a whole or

in respect of the part of the relevant liability to which that sum relates;

   (ii ) b y a n y other person by way of compensation or benefit for the death, bodily injury or other damage to

which the relevant proceedings relate, including a sum which would have been deductible under the provisions of clause 16 if it had been received before MIB was obliged to satisfy MIB's obligation.

LIMITATIONS ON MIB's LIABILITY

Compensation for damage to property

  1 5 .- ( 1 ) Where a claim under this Agreement includes a claim in respect of damage to property, MIB's obligation in respect of that part of the relevant sum which is awarded for such damage and any losses arising therefrom (referred to in this clause as "the property damage compensation") is limited in accordance with the following paragraphs.

(2 ) Wh ere the property damage compensation does not exceed the specified excess, MIB shall incur no liability.

(3 ) Wh ere the property damage compensation in respect of any one accident exceeds the specified excess but does not exceed £250,000, MIB shall incur liability only in respect of the property damage compensation less the specified excess.

(4 ) Wh ere the property damage compensation in respect of any one accident exceeds £250,000, MIB shall incur liability only in respect of the sum of £250,000 less the specified excess.

Compensation received from other sources

1 6 . Wh ere a claimant has received compensation from -

  (a ) th e Policyholders Protection Board under the Policyholders Protection Act 1975; or   (b ) a n insurer under an insurance agreement or arrangement; or

  (c ) a n y other source,

in respect of the death, bodily injury or other damage to which the relevant proceedings relate and such compensation has not been taken into account in the calculation of the relevant sum MIB may deduct from the relevant sum, in addition to any sum deductible under clause 15, an amount equal to that compensation.

MISCELLANEOUS Notifications of decisions by MIB

1 7 . Wh ere a claimant -

  (a ) h a s made an application in accordance with clause 7; and

  (b ) h as given to the person specified in clause 9(1) proper notice of the relevant proceedings in accordance with

clause 9(2),

MIB shall -

  ( i) g ive a reasoned reply to any request made by the claimant relating to the payment of compensation in

pursuance of MIB's obligation; and

  (ii ) a s soon as reasonably practicable notify the claimant in writing of its decision regarding the payment of the

relevant sum, together with the reasons for that decision.

Reference of disputes to the  Committee

1 8 .- ( 1 ) In the event of any dispute as to the reasonableness of a requirement made by MIB for the supply of information or documentation or for the taking of any step by the claimant, it may be referred by the claimant or MIB to the Committee whose decision shall be final.

(2 ) Wh ere a dispute is referred to the Committee -

  (a ) M IB shall supply the Committee and, if it has not already done so, the claimant with notice in writing of the

requirement from which the dispute arises, together with the reasons for that requirement and such further information as MIB considers relevant, and

  (b ) w here the dispute is referred by the claimant, the claimant shall supply the Committee and, if he has not

already done so, MIB with notice in writing of the grounds on which he disputes the reasonableness of the requirement.

Recoveries

  1 9 . N  othing in this Agreement shall prevent an insurer from providing by conditions in a contract of insurance that all sums paid by the insurer or by MIB by virtue of the Principal Agreement or this Agreement in or towards the discharge of the liability of the insured shall be recoverable by them or by MIB from the insured or from any other person.

Apportionment of damages, etc.

2 0 .- ( 1 ) Where an unsatisfied judgment which includes an amount in respect of a liability other than a relevant liability has been assigned to MIB or its nominee in pursuance of clause 14 MIB shall -

( a ) a pportion any sum it receives in satisfaction or partial satisfaction of the judgment according to the

proportion which the damages awarded in respect of the relevant liability bear to the damages awarded in respect of the other liability, and

(b ) a c count to the claimant in respect of the moneys received properly apportionable to the other liability.

(2 ) Wh ere the sum received includes an amount in respect of interest or an amount awarded under an order for costs, the interest or the amount received in pursuance of the order shall be dealt with in the manner provided in paragraph (1).

Agents

  2 1 . M  IB may perform any of its obligations under this agreement by agents.

Transitional provisions

  2 2 .- ( 1 ) The 1990 Agreement shall continue in force in relation to claims arising out of accidents occurring before ___________ 2000 with the modifications contained in paragraph (2).

(2 ) I n relation to any claim made under the 1990 Agreement after this Agreement has come into force, the 1990 Agreement shall apply as if there were inserted after clause 6 thereof -

"6 A . Where any person in whose favour a judgment in respect of a relevant liability has been made has - (a ) m ade a claim under this Agreement, and

(b )  s atisfied the requirements specified in clause 5 hereof,

MIB shall, if requested to do so, give him a reasoned reply regarding the satisfaction of that claim.".

IN WITNESS whereof the Greffier of the States of Jersey acting for and on behalf of the Committee has signed the Agreement and the Motor Insurers' Bureau has caused its Common Seal to be hereunto affixed the day and year first above written.

Signed by the

Greffier of the States of Jersey

and authorised by the act of the

Home Affairs Committee dated ______________________

in the presence of

NOTES FOR THE GUIDANCE OF VICTIMS OF ROAD TRAFFIC ACCIDENTS

The following notes are for the guidance of anyone who may have a claim on the Motor Insurers' Bureau under this Agreement and their legal advisers. They are not part of the Agreement, their purpose being to deal in ordinary language with the situations which most readily occur. They are not in any way a substitute for reading and applying the terms of this or any other relevant Agreement, nor are they intended to control or influence the legal interpretation of the Agreement. Any enquiries, requests for application forms and general correspondence In connection with the Agreement should be addressed to -

M o to  r I nsurers Bureau 1 5 2 S ilb  ury Boulevard C e n tr a l Milton Keynes M ilto n Keynes

M K 9 1 N B

T e l: 0 1 908 830001

Fa  x : 0 1908 671681

D X : 8 4753 Milton Keynes 3

1. I nt ro duction - MIB's role and application of the Agreement

1. T h e role of MIB under this Agreement is to provide a safety net for innocent victims of drivers who have been identified but are uninsured. MIB's funds for this purpose are obtained from levies charged upon insurers and so come from the premiums which are charged by those insurers to members of the public.
2. M I B has entered into a series of Agreements with the Home Affairs Committee of the States of Jersey (formerly the Defence Committee). Under each Agreement MIB undertakes obligations to pay defined compensation in specific circumstances. There are two sets of Agreements, one relating to victims of uninsured drivers (the "Uninsured Drivers" Agreements) and the other concerned with victims of hit and run or otherwise untraceable drivers (the "Untraced Drivers" Agreements). These Notes are addressed specifically to the procedures required to take advantage of the rights granted by the Uninsured Drivers Agreements. However, it is not always certain which of the Agreements applies. For guidance in such cases please see the note on Untraced Drivers at paragraph 11 below.
3. I n o rder to determine which of the Uninsured Drivers Agreements is applicable to a particular victim's claim, regard must be had to the date of the relevant accident. This Agreement only applies in respect of claims arising on or after __________________2000. Claims arising earlier than that are covered by the following Agreements:-

1. C la ims arising in respect of an incident occurring between 1st December 1953 and 31st July 1975 are governed by the Agreement between the Defence Committee and the Bureau dated 26th January 1954.
2. C la ims arising in respect of an incident occurring between 1st August 1975 and 30th June 1990 are governed by the Agreement between the Defence Committee and the Bureau dated 17th July 1975.
3. C la ims arising in respect of an incident occurring between 1st July 1990 and ___________ 2000 are governed by the Agreement between the Defence Committee and the Bureau dated 15th June 1990.

2. MI B ' s obligation

1. M I B 's basic obligation (see clause 5)is to satisfy judgments which fall within the terms of this Agreement and which, because the Defendant to the proceedings is not insured, are not satisfied.
2. T h is   obligation is, however, not absolute. It is subject to certain exceptions where MIB has no liability (see clause 6), there are a number of pre-conditions which the claimant must comply with (see clauses 7 to 14) and there are some limitations on MIB's liability (see clauses 15 and 16).
3. M I B does not have to wait for a judgment to be given; it can become party to the proceedings or negotiate and settle the claim if it wishes todo so.

3. C  la im  s which MIB is not obliged to satisfy

M I B is not liable under the Agreement in the case of the following types of claim -

1. A c l aim made in respect of an unsatisfied judgment which does not concern a liability against which paragraphs (5) and (6)of the Motor Traffic (Third Party Insurance) (Jersey) Law 1948 requires a vehicle user to insure. An example would be a case where the accident did not occur in a place specified in the Law. See the definitions of "unsatisfied judgment" and "relevant liability" in clause 1.
2. A c la im in respect of loss or damage caused by the use of a vehicle owned by or in the possession of the Crown, the States of Jersey or any parochial authority to which Article 2 of the Law does not apply. If the responsibility for motor insurance has been undertaken bysomeone else or the vehicle is in fact insured, this exception does not apply. See clause 6(1)(a).
3. A c la im made against any person who is not required to insure by virtue of Article 2(6) of the Law. See clause 6(1) (b).
4. A c la im (commonly called subrogated) made in the name of a person suffering damage or injury but which is in fact wholly or partly for the benefit or another who has indemnified, or is liable to indemnify that person. See clause 6(1)(c).
5. A c la im in respect of damage to a motor vehicle or losses arising from such damage where the useof the damaged vehicle was itself not covered by a contract of insurance as required bylaw.See clause 6(1)(d).
6. A c la im made by a passenger in a vehicle where the loss or damage has been caused by the user of that vehicle if -

1. th e use of the vehicle was not covered by a contract of insurance; and
2. th e claimant knew or could be taken to have known that the vehicle was being used without insurance, had been stolen or unlawfully taken or was being used in connection with crime.  See clause 6(1)(e), (2), (3) and (4).

7. A c la im in respect of property damage amounting to£300or less, £300 being the "specified excess". See clause 16 (2).
8. Wh e re the claim is for property damage, the first £300 of the loss and so much of it as exceeds £250,000. See clause 16(3) and (4).

4. P r o c e dure after the accident and before proceedings

1. T h e claimant must take reasonable steps to establish whether there is in fact any insurance covering the useof the vehicle which caused the injury or damage. First, a claimant has statutory rights under Article 10 of the Law to obtain relevant particulars which he must take steps to exercise even if that involves incurring expense and MIB will insist that he does so. See clause 12(a).
2. O th e r steps will include the following -

1. T h e exchange of names, addresses and insurance particulars between those involved either at the scene of the accident or afterwards.
2. C o rresponding with the owner or driver of the vehicle or his representatives. He will be obliged under the terms of his motor policy to inform his insurers and a letter of claim addressed to him will commonly be passed to the insurers who may reply on his behalf. See clause 9(2)(d).
3. Wh   ere only the vehicle's number is known, enquiry of the Driver and Vehicle Standards Department, La Route de Veulle, St. Helier , Jersey, JE1 3UE (Telephone 833200) as to the registered keeper of the vehicle is desirable so that through him the identity of the owner or driver can be established or confirmed.
4. E n quiries of the police (see clause 13(b)).

3. I f e n quiries show that there is an insurer who is obliged to accept and does accept the obligation to handle the claim against the user of the vehicle concerned, even though the relevant liability may not be covered by the policy in question, then the claim should be pursued with such insurer.

4. I f, h owever, enquiries disclose that there is no insurance covering the use of the vehicle concerned or if the insurer cannot be identified or the insurer asserts that it is under no obligation to handle the claim orif for any other reason it is clear that the insurer will not satisfy any judgment, the claim should be directed to MIB itself.
   5. W  he  n proceedings are commenced or contemplated

1. A s e xplained above, MIB does not have to wait for a judgment to be obtained before intervening. Claimants may apply to MIB before the commencement of proceedings. MIB will respond to any claim which complies with clause 7 and must give a reasoned reply to any request for compensation in respect of the claim (see clause 17) although normally a request for compensation will not be met until MIB is satisfied that it is properly based. Interim compensation payments are dealt with at paragraph 8 below.
2. I t is important that wherever possible claims should bemade using MIB's application form, fully completed and accompanied by documents supporting the claim, as soon as possible to avoid unnecessary delays. See clause 7(1). Copies of the form can be obtained on request madeby post, telephone, fax or the DX oron personal application to MIB's offices.
3. T h e claimant must give MIB notice in writing that he has commenced legal proceedings. The notice, the completed application form (if appropriate) and all necessary documents must be received by MIB no later than 14days after the date of commencement of proceedings. See clause 9(1) and (2)(a). The date of commencement is determined in accordance with the definitions of "relevant proceedings" and "commencement" given in clause 1.
4. T h is notice must have with it the following -

1. a c opy of the document originating the proceedings, usually an Order of justice returnable before the Royal Court of Jersey;
2. in any case the documents required by the relevant rules of procedure (see clause 9(2)(f).

5. I n a d dition, other items as mentioned in clause 9(2), e.g. correspondence with the Defendant or his representatives, need to be supplied where appropriate.
6. I t is for the claimant to satisfy himself that the notice has in fact been received byMIB. Clause 8 applies to service of documents by post and fax. MIB prefer service by fax as it is almost instantaneous and can be confirmed quickly. Claimants should note that service of documents by DX is not permitted under the Agreement since delivery cannot be proved.
7. I t s h ould be noted that when MIB has been given notice of a claim, it may elect to require the claimant to bring proceedings and attempt to secure a judgment against the party whom MIB alleges to be wholly or partly responsible for the lossor damage or who may be contracted to indemnify the claimant. In such a case MIB must indemnify the claimant against the costs of such proceedings. Subject to that, however, MIB's obligation to satisfy the judgment in the action will only arise if the claimant commences the proceedings and takes all reasonable steps to obtain a judgment. See clause 13(a).

6. A  ft e r service and before judgment

1. N o tic e of the filing of a defence, of an amendment to the Order of Justice or Particulars of Claim, and the setting down of the caseon the hearing list must be given not later than 7 days after the occurrence of such events and a copy of the document must be supplied (see clause 10(1)).
2. M I B may request further information and documents to support the claim where it is not satisfied that the documents supplied with the application form are sufficient to enable it to assess its liability under the Agreement (see clause 10(2)).
3. I f th  e claimant intends to apply for judgment he must give MIB notice of the fact before doingso. This notice must be given at least 35 days before the application is to be made (see clause 11).
4. A t n o time must the claimant oppose MIB if it wishes to be joined as a party to proceedings and he must if requested consent to any application by MIB to be joined.

7. I nt  er im  payments

  In s u b s tantial cases, the claimant may wish to apply for an interim payment. MIB will consider such applications

on a voluntary basis but otherwise the claimant has the right to apply to the court for an interim payment order which, if granted, will be met by MIB.

8. A  ft e r judgment

1. M I B 's basic obligation normally arises if a judgment is not satisfied within 7 days after the claimant has become entitled to enforce it (see clause 1). However, that judgment may in certain circumstances be set aside and with it MIB's obligation to satisfy it. Sometimes MIB wishes to apply to set aside a judgment either wholly or partially. If MIB decides not to satisfy a judgment it will notify the claimant as soon as possible. Where a judgment is subsequently set aside, MIB will require the claimant to repay any sum previously paid by MIB to discharge its obligation under the Agreement (see clause 14(b)).
2. M I B is not obliged to satisfy a judgment unless the claimant has in return assigned the benefit to MIB or its nominee (see clause 14(a)). If such assignment is effected and if the subject matter of the judgment includes claims in respect of which MIB is not obliged to meet any judgment and if MIB effects any recovery on the judgment, the sum recovered will be divided between MIB and the claimant in proportion to the liabilities which were and which were not covered byMIB's obligation (see clause 20).

9. P e r m  issible deductions from payments by MIB

1. C la im  s for loss and damage for which the claimant has been compensated or indemnified, e.g. under a contract of insurance, and which has not been taken into account in the judgment, maybe deducted from the sum paid in settlement of MIB's obligation (see clause 16).
2. I f th  ere is a likelihood that the claimant will receive payment from such a source after the judgment has been satisfied by MIB, MIB will require him to undertake to repay any sum which duplicates the compensation assessed by the court (see clause 14(b)).

10. U nt  raced drivers

1. T  h e MIB has no liability under this Agreement to pay compensation in respect of any person who may suffer bodily injury or death or may sustain damage to property resulting from the use on a road of a vehicle where the owner or driver of which cannot be traced. However, the MIB undertakes to give consideration to bodily injury and fatal cases informally along the lines of the Agreement dated 14th June 1996 between the Secretary of State for the Environment  and  the  MIB  (the  Untraced  Drivers  Agreement  for England,  Wales  and  Scotland).  Where  an application is made in writing to the MIB within three years from the date of the event giving rise to the death or injury if there is evidence to establish on a balance of probabilities that a motor vehicle was involved and that an unidentified person or persons would have been liable to pay damages to the applicant then such applicant or his dependants will subject to issues of legal liability be eligible for an award subject to the exceptions in Clause 6 of the aforesaid Untraced Drivers Agreement insofar as they are applicable. It should be noted that the Untraced Drivers Agreement does not embrace damage to property.
2. I n the event that the Home Affairs Committee of the States of Jersey enters into an Untraced Drivers Agreement with the MIB, then in such event any such application shall be under that Agreement and not the Agreement to which reference is made at paragraph 10.1.

[1]

R & O  3407. [2]

R & O  6176.