The MIBI, which is funded by the insurance premiums paid by Irish drivers, saw a sharp increase in both claims and settlements last year.

Claims paid by the MIBI increased by 36% from 49m in 2004 and have doubled since 1999.

The figures are contained in the bureau's 2005 accounts which have just been filed with the Companies' Office.

MIBI chief executive John Casey said last year's numbers were inflated by an uncommonly high number of large, 1m-plus settlements.

"We settled a lot of old, very severe claims that had been hanging around for years, " he said.

The cost borne by Irish drivers as a result of reckless, uninsured motorists is likely to increase further in the coming year. According to actuarial advice received by the MIBI the cost of the accidents caused by uninsured drivers last year alone will hit 80m by the time all claims have been settled.

"The claims outlook for the first six months is that we're looking at an increase in the number of claims coming in, " said Casey. Over the first six months of the year more than 1,000 car accidents have been caused by uninsured drivers.

In the whole of 2005 there were 1,628 such accidents.

Six percent of drivers on Irish roads are uninsured, the highest percentage in Europe.