Road Traffic Act 1988

145 Requirements in respect of policies of insurance. E+W+S

(1) In order to comply with the requirements of this Part of this Act, a policy of insurance must satisfy the following conditions.

(2) The policy must be issued by an authorised insurer.

(3) Subject to subsection (4) below, the policy—

(a) must insure such person, persons or classes of persons as may be specified in the policy in respect of any liability which may be incurred by him or them in respect of the death of or bodily injury to any person or damage to property caused by, or arising out of, the use of the vehicle on a road [F1 or other public place] in Great Britain, and

[F2 (aa) must, in the case of a vehicle normally based in the territory of [F3 a] member State, insure him or them in respect of any civil liability which may be incurred by him or them as a result of an event related to the use of the vehicle in Great Britain if,—

(i) according to the law of that territory, he or they would be required to be insured in respect of a civil liability which would arise under that law as a result of that event if the place where the vehicle was used when the event occurred were in that territory, and

(ii) the cover required by that law would be higher than that required by paragraph (a) above, and]

(b) must [F4 in the case of a vehicle normally based in Great Britain] insure him or them in respect of any liability which may be incurred by him or them in respect of the use of the vehicle and of any trailer, whether or not coupled, in the territory [F5 of Northern Ireland and] of each of the member States of the [F6 European Union] according to

[F7 (i) the law on compulsory insurance against civil liability in respect of the use of vehicles [F8 applicable in the territory in which] the event giving rise to the liability occurred; or

(ii) if it would give higher cover, the law which would be applicable under this Part of this Act if the place where the vehicle was used when that event occurred were in Great Britain; and]

(c) must also insure him or them in respect of any liability which may be incurred by him or them under the provisions of this Part of this Act relating to payment for emergency treatment.

(4) The policy shall not, by virtue of subsection (3)(a) above, be required—

(a) to cover liability in respect of the death, arising out of and in the course of his employment, of a person in the employment of a person insured by the policy or of bodily injury sustained by such a person arising out of and in the course of his employment, or

(b) to provide insurance of more than [F9 £1,200,000] in respect of all such liabilities as may be incurred in respect of damage to property caused by, or arising out of, any one accident involving the vehicle, or

(c) to cover liability in respect of damage to the vehicle, or

(d) to cover liability in respect of damage to goods carried for hire or reward in or on the vehicle or in or on any trailer (whether or not coupled) drawn by the vehicle, or

(e) to cover any liability of a person in respect of damage to property in his custody or under his control, or

(f) to cover any contractual liability.

[F10 (4A) In the case of a person—

(a) carried in or upon a vehicle, or

(b) entering or getting on to, or alighting from, a vehicle,

the provisions of paragraph (a) of subsection (4) above do not apply unless cover in respect of the liability referred to in that paragraph is in fact provided pursuant to a requirement of the M1 Employers’ Liability (Compulsory Insurance) Act 1969. ]

[F11 (5) “Authorised insurer” has the same meaning as in section 95.]

(6) If any person or body of persons ceases to be a member of the Motor Insurers’ Bureau, that person or body shall not by virtue of that cease to be treated as an authorised insurer for the purposes of this Part of this Act F12 . . . —

(a) in relation to any policy issued by the insurer before ceasing to be such a member, or

(b) in relation to any obligation (whether arising before or after the insurer ceased to be such a member) which the insurer may be called upon to meet under or in consequence of any such policy or under section 157 of this Act F12 . . . by virtue of making a payment in pursuance of such an obligation.

Textual Amendments

F1 Words in s. 145(3)(a) inserted (3.4.2000) by S.I. 2000/726, art. 2(3)

F2 S. 145(3)(aa) inserted (31.12.1992) by S.I. 1992/3036, reg. 2(1).

F3 Word in s. 145(3)(aa) substituted (31.12.2020) by The Motor Vehicles (Compulsory Insurance) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/551), regs. 1(1), 2(a); 2020 c. 1, Sch. 5 para. 1(1)

F4 Words in s. 145(3)(b) inserted (31.12.1992) by S.I. 1992/3036, reg. 2(2)

F5 Words in s. 145(3)(b) substituted (31.12.2020) by The Motor Vehicles (Compulsory Insurance) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/551), regs. 1(1), 2(b)(i); 2020 c. 1, Sch. 5 para. 1(1)

F6 Words in Act substituted (22.4.2011) by The Treaty of Lisbon (Changes in Terminology) Order 2011 (S.I. 2011/1043), arts. 2, 3, 4 (with arts. 3(2)(3), 4(2), 6(4)(5))

F7 Words in s. 145(3)(b) substituted (31.12.1992) by S.I. 1992/3036, reg. 2(2).

F8 Words in s. 145(3)(b)(i) substituted (31.12.2020) by The Motor Vehicles (Compulsory Insurance) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/551), regs. 1(1), 2(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F9 Word in s. 145(4)(b) substituted (31.12.2016) by The Motor Vehicles (Compulsory Insurance) Regulations 2016 (S.I. 2016/1193), regs. 1, 2(2)

F10 S. 145(4A) inserted (31.12.1992) by S.I. 1992/3036, reg. 2(3).

F11 S. 145(5) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 313

F12 Words in s. 145(6) repealed (29.1.2007) by Health and Social Care (Community Health and Standards) Act 2003 (c. 43), ss. 196, 199, Sch. 14 Pt. 3; S.I. 2006/3397, art. 3 (subject to art. 4); S.S.I. 2007/10, art. 2(2)(g) (with art. 3(2)(a))

Modifications etc. (not altering text)

C1 S. 145 excluded (23.6.1999) by S.I. 1999/1736, art. 8(1)(b)(2)(b)

C2 S. 145(2) excluded by virtue of S.I. 1973/2143, reg. 8 (as amended by S.I. 1974/791, reg. 6); 1988 c. 54, s. 2

Marginal Citations

M1 1969 c. 57