British motor insurers have voted to mutualise risks associated with terrorism claims.

From next year, the Motor Insurers’ Bureau (MIB) will handle all third-party claims and victim claims if terrorists engage in vehicle-led attacks.

The MIB deals with victim claims from hit-and-run incidents and crashes involving uninsured drivers. All car insurers are members of the bureau, which is funded through a levy.

The British Insurance Brokers’ Association has welcomed the insurers’ vote.

“The use of a vehicle as a weapon is not what motor insurance is designed for and it would be wholly unfair, not to mention unsustainable, to hold a single motor insurer responsible for any subsequent compensation payments,” association Executive Director Graeme Trudgill said.

After last year’s London Bridge terror attack, MIB Chief Technical Officer Paul Ryman-Tubb noted that while motor insurers were unlikely to be legally obliged to pay victims of vehicle-led terror attacks, MIB articles exposed individual insurers and reinsurers to the cost.