UK based motor insurers have voted to mutualise terrorism claims involving a vehicle being used as a weapon.

From 1 January 2019, the Motor Insurers' Bureau (MIB) will deal with all third-party motor claims where terrorists driving vehicles kill or injure people.

The market will continue to fund the MIB through a levy, in the same way as they deal with uninsured or untraced drivers currently. The MIB stated that it may also explore the possibility of reinsuring some of their liability.

The move follows concerns by motor insurers and reinsurers in relation to cover and pricing for motor terrorism risks after several domestic and international terrorist events. Indeed some motor insurers / reinsurers had been considering excluding cover from such attacks as a result of these developments.

The MIB advised that more than 75% of motor insurers by voting rights agreed the change, following a 28-day ballot which closed on 19 July. As a result, Article 75, the relevant element within MIB’s Articles of Association, has changed to bring these within the scope of the claims paid by the Bureau.

This follows on from the consultation on the issue earlier this year where MIB was asked to determine the level of support across the market for a change to be made so that the liability of the Article 75 insurer moved to MIB.