Motor Insurance Law

The first Road Traffic Act was introduced in 1930. This Act has since been amended by the Road Traffic Act 1988 and certain amendments were made in the Road Traffic Act of 1991. The Road Traffic Act is an extremely large and complex document made up of several parts dealing with Road Safety, Construction and Use, Driver licensing, Driving Instruction and Insurance. Another important Act to consider when discussing implications on Insurance is the Road Traffic Offenders Act 1974, which specifically implies conditions regarding the rehabilitation of offenders. An issue specifically giving direction on how we should deal with people who have incurred motoring offences in the past.

The Road Traffic Act 1988 (RTA)

The Road Traffic Act 1988 (RTA) superseded that originally introduced in 1930.

As with many Acts of Parliament the RTA is extremely difficult to understand in it’s standard written format. Act’s are written in such a complex way that many Solicitors, Barristers and Judges often read into them in different ways and make comment and judgement on how they believe it can be read and used.

This is why you get many cases that contradict the common understanding of the law. These cases are then used as examples in future cases and become historic in their own right.

Part VI Section 143
This Section makes it unlawful for any person to:
Use a motor vehicle on a road, or To permit any other person to use a motor vehicle on a road without their being in force a policy of car insurance or security in respect of third party risks.

In other words, anybody who drives a motor vehicle on a road or lets anybody drive their vehicle must have at least third party only cover.

The part (b) above also makes reference to, ‘or security in respect of third party risks’. This is covered by: Part VI 144

Part VI Section 144
This provides for certain exemptions to s.143. In addition to a security, a deposit of Ј500,000 may be placed with the Accountant General of the Supreme Court. As you might imagine this alternative to compulsory Insurance is not popular or widely used.

Certain groups are exempt from compulsory requirements. These are County Council Authorities, Police Authorities, vehicles used for salvage purposes, vehicles used by the Army, Air Force, vehicles made available by the Secretary of State temporarily as ambulances etc.

It is unusual for HM forces and the Government to take out Insurance as the claims can be taken out of the Treasury money raised by income and other taxes. County Council and Police Authorities usually do arrange Insurance.

Rehabilitation of Offenders Act 1974

This Act outlines the fact that no person must be penalised for spent convictions no matter how interested the insurer may be.

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