MIB Mutually Funded Cover Will Be Offered to Terror Attack Victims

Most car and van policies exclude damages or claims arising as a result of terror attacks. But now things are changing, as the UK insurance industry accepts vehicles may be used as weapons, and so one single insurer cannot be held accountable for a series of catastrophic injuries or fatalities. Instead a mutually funded scheme will be implemted to assist attack victims. Here is the reaction from the ABI and BIBA:

James Dalton, Director, General Insurance Policy, Association of British Insurers, said:

“The UK motor insurance market has responded positively and pragmatically to some of the challenges posed by terrorist-related claims for compensation by deciding to mutualise these risks and have claims paid by the Motor Insurers Bureau. With widespread support across the UK motor market, this important change will ensure that victims who are killed or injured by a vehicle in a terrorist incident will have certainty over who will be providing the compensation and support they need.”

Response by Graeme Trudgill, BIBA Executive Director

“BIBA believes this vote by MIB members to mutualise motor terrorism risk is absolutely the right thing to do. Gaps in terrorism cover were highlighted in our 2018 manifesto and we committed to helping the market find solutions.  The use of a vehicle as a weapon is not what motor insurance is designed for and it would be wholly unfair not to mention unsustainable, to hold a single motor insurer responsible for any subsequent compensation payments.  I must say well done to the MIB and its members for bringing about this change so quickly.”

About alastair walker 10573 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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