By Dermot Cogan
Everyone knows that the purpose of the MIBI is to compensate victims of road traffic accidents caused by uninsured and unidentified vehicles.
It is in our remit to protect the interests of the victims of uninsured drivers. That extends to having the right to pursue those uninsured drivers for the costs of the accidents they have caused.
If an uninsured driver is responsible for an accident, they are liable for the full cost of the claim that is paid by the MIBI.
If the uninsured driver’s circumstances don’t allow them to pay immediately, MIBI can pursue various recovery options as this case study highlights…
CASE STUDY
In 2016, an uninsured driver caused a serious accident. After the accident occurred, they fled the scene, leaving a passenger who was severely injured behind. As the driver was uninsured, the entire cost of the claim was handled by MIBI.
Due to the injuries sustained by the passenger and other expenses involved, this resulted in the MIBI having to make a payout of approximately €55,000.
Effectively, thanks to our right of recovery, the uninsured driver then became a debtor to MIBI, responsible for repaying the claim amount in full.
However, the debtor’s circumstances indicated that they would not be capable of repaying the claim at that time. Therefore, MIBI explored options to pursue the claim amount, soon identifying that the uninsured driver owned a property.
Ownership of assets is one of the factors that is carefully considered by MIBI when deciding which route to take for debt recovery.
With this information, in 2021, MIBI sought a formal judgment against the driver.
Once this was granted, it allowed the MIBI to secure a legal interest on the debtor’s property equal to the debt owed.
In 2022, MIBI registered a judgment mortgage on the property, ensuring that a “charge” was placed on the asset. This charge prevented any sale of the property until the debt was discharged. During this time, despite efforts made by MIBI to engage, the debtor did not respond and made no attempt to repay the debt.
Two years later in 2024, the debtor attempted to sell their property. Due to MIBI’s judgment mortgage, the property sale could not proceed until the debt was fully satisfied.
The end result being the MIBI successfully recovered the entire debt of €55,000 from the proceeds of the property sale, achieving a full recovery of the claim amount.
This successful recovery exemplifies how MIBI’s ‘Holding to Account’ strategy not only creates longer term financial gains for the MIBI, but also sends a strong message to uninsured drivers.
Evading responsibility for driving without insurance is not an option and if you cause an accident we will pursue you, no matter how long it takes.
