The vote will decide whether costly motor claims arising from a terrorist attack should be paid collectively through the MIB central fund

The MIB today began polling members on whether terrorist-related motor pay-outs should be split between the membership.

The proposal is in response to the often crippling pay-outs that can affect a motor insurer when a terrorist uses a vehicle in a terrorist attack.

The MIB is proposing that rather than let the insurer of the vehicle involved solely pay out for what could be a sizable number of expensive claims, a fairer solution could be to pay the cost through the MIB central fund.

The issue went to consultation in February, with responses showing 83% of the membership in favour of sharing the costs through the MIB. No response was received from 10% of members, with 7% against the changes.

The consultation document stated: “Recent terrorist attacks involving the use of a vehicle have given rise to consideration as to whether such random, unpredictable acts of violence should be borne by the market as a whole (ie by the MIB central fund) or by an individual insurer who happens to have insured the vehicle involved, but clearly not for terrorist purposes.”


The consultation threw up some disagreement in whether the MIB would cover the entirety of costs arising from a terrorist incident, or whether it would only contribute beyond a certain threshold. Responses showed 42% in favour of the MIB paying out from the ground up.

Other responses ranged from £250,000 to £50m as to the level from which the MIB should be responsible.

The change would have implications for the levy paid by members, and the consultation also revealed some disagreement over how the extra costs are apportioned and whether the MIB should increase funding prior to an incident.

The vote put to members as a result of this consultation is for the MIB to take responsibility for the entirety of all pay-outs for terrorist incidents from 2019 onwards.

It also included that the MIB would explore the possibility of reinsuring some of the potential liability arising from the terrorism risk and would commence operational preparations in order to respond to such an event.

The vote requires 75% of members to approve for the changes to be passed.

The poll began today, with members given 28 days to make their vote.