Motor Insurers' Bureau of Hong Kong

Since the inception of the Motor Insurers' Bureau of Hong Kong ("MIB") in 1980, it has been providing compensation to victims of traffic accidents where the drivers concerned are uninsured or untraceable, or the insurers concerned are insolvent. All insurers authorized to carry on compulsory motor insurance business in Hong Kong are required to be members of the MIB.

The MIB administers two funds, namely the First Fund and the Insolvency Fund. The First Fund provides relief to a third party traffic accident victim (or his/her dependants) who suffers bodily injury or death but is unable to obtain compensation because the driver is uninsured or untraceable. As a result of the legislative changes in 1995 whereby insurance policies are allowed to set a limit on third party liabilities, the coverage of the First Fund is extended to include that part of the awards to traffic accident victims which exceeds the policy limit. The Insolvency Fund compensates a third party claimant whose claims for bodily injury, death or property damage resulting from a traffic accident remains unsettled due to the insolvency of the insurer concerned.

The two funds are financed by levies on motor insurance premiums. Currently, the levy for the First Fund is 3% and that for the Insolvency Fund is 0%.