A local authority may enter into a contract with any person whereby, in consideration of payments by the authority by way of premium or otherwise, that person undertakes to pay to the authority such sums as may be provided in the contract in the event of any member of the authority meeting with a personal accident, whether fatal or not, while he is engaged on the business of the authority.

Any sum received by the authority under any such contract shall, after deduction of any expenses incurred in the recovery thereof, be paid by them to, or to the personal representatives of, the member concerned.

The provisions of the M1Life Assurance Act 1774 shall not apply to any such contract, but any such contract shall be deemed for the purposes of F1the Financial Services and Markets Act 2000 to be a policy of insurance upon the happening of personal accidents.

In this section, the expression “member of the authority” includes a member of a committee or sub-committee of the authority who is not a member of that authority.