DirectDevil
Registered User
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Basically, that is it.
The case where the insurance is in place but it is invalid catches the insurance company that had a certificate of insurance in place on the vehicle at the relevant time. Last time I dealt with one of those the insurance company would be deemed the "insurer concerned". That means that the insurance company has to deal with the third party claims. However, this is not the provision of indemnity under the policy and is dealt with in effect as an MIBI claim.
The price of uninsured motoring impinges on properly insured people two ways ;
1. A person who is uninsured and who incurs a financial liability for the MIBI is costing the insured motorist because the MIBI is funded by all insurance companies who underwrite motor insurance in the country. The companies fund this liability from their policyholders.
2. A person who drives uninsured but without having an accident is also a sponger. Specifically, when they drive they represent a risk just like every other motorist but they are not sharing or covering the risk in a pool like properly insured people. Put another way, I pay a premium every year and the uninsured motorist does not. If I have an accident my insurers deal with it. If the uninsured motorist has an accident they will likely receive the same indemnity from the MIBI whilst having paid no premium.