"When Bryan Drysdale elected to commit suicide, the chef parked his car on the tracks at Ufton Nervet near Reading. A train hit it and seven died with more than 100 passengers injured. As Drysdale’s insurance had lapsed his claim was handled by the Motor Insurers’ Bureau meaning the estimated £50m of claims from victims will be passed onto us motorists".

The insurance company is not paying it – the MIB are. It was an uninsured crash on a road so they have to pay it out of the funds they have which come from all insurers in the UK.
The article is correct in that the insurers get their money from policyholders in premiums.
This is why scumbag uninsured drivers cost us law abiding insured people £30 to £50 a year per policy.