First, let’s look at why the MIB was set up. Its main purpose is to handle motor claims in cases where (1) the negligent driver cannot be traced/located, (2) the negligent driver possess an invalid motor car insurance policy, or (3) the negligent driver is not covered by any auto insurance at all.

Under the above situation, the MIB will seek to compensate the third party (victim) for any bodily injuries or death. Unfortunately damages to anything other than death and bodily injuries (take for example, property damages) are not claimable from the MIB.

To undertake this public responsibility, the MIB is funded by a small contribution (levy) paid by its members. And all motor insurers in Singapore are (mandatory) members of the MIB, and their contribution is based in proportion to the motor insurance premium income they earn.

This is a little known information although it’s being taught to all drivers during driving theory lessons. Little known, yet it may be useful. You never know – you may be able to help a helpless soul with this information some day in the future.

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