HOW DOES MIB FUNCTION?

It operates under three categories of agreements:

1. The Principal Agreement between the MIB and the Minister for Finance to provide compensation for the victims of uninsured and untraced drivers. If you have difficulty in securing satisfaction of your claim due to (a) no insurance (b) an untraceable vehicle or driver and (c) insolvency of an insurance company, the MIB can help you or your dependents to obtain settlement. (i) The Uninsured Drivers' Agreement requires the MIB to meet unsatisfied Court Judgements against identified motorists who may not have been insured under the Motor Vehicles (Third Party Risks And Compensation) Act (Chapter 189). The other - (ii) The Untraced Drivers' Agreement requires the MIB to consider applications for compensation from victims of 'hit and run' motorists. Such applications must be submitted, in writing, within three years of accident. Applicants can appeal against the decision of the Bureau to the Minister for Finance whose decision is final.
   
   
2. The Domestic Agreement is between the MIB and Singapore registered Insurers
   
   This Agreement establishes circumstances where an insurer must satisfy judgements as "Insurer Concerned" where there is a policy of insurance in existence in respect of the vehicle which caused the injury. It applies where a certificate has been issued but the use of the vehicle at the time is not covered eg. vehicle driven by an unauthorized driver. Cases of ineffective cancellation of policy, ineffective transfer of vehicle and breach of policy conditions fall under this category. This Agreement also provide for Arbitration of disputes between individual members or between them and the Bureau concerning the application of the Agreement.
   
   
3. The Special Agreement is between our MIB and Malaysian registered Insurers
   
   This Agreement is signed by Malaysian insurers who are not registered in Singapore, whereby they agree to be bound by the Articles of Association of our MIB and the Principal Agreement, in every respect and to comply with every obligation imposed upon members of our Bureau. This ensures that an ineffectively insured Malaysian registered vehicle coming into Singapore will not create a liability to our Bureau if it caused bodily injury to a third party here. The Malaysian insurers will have to settle such claims as "Insurers Concerned".