(1)If a compensation payment is made in a case where—
(a)a person is liable to any extent in respect of the accident, injury or disease, and
(b)the liability is covered to any extent by a policy of insurance,
the policy is also to be treated as covering any liability of that person under section 6.
(2)Liability imposed on the insurer by subsection (1) cannot be excluded or restricted.
(3)For that purpose excluding or restricting liability includes—
(a)making the liability or its enforcement subject to restrictive or onerous conditions,
(b)excluding or restricting any right or remedy in respect of the liability, or subjecting a person to any prejudice in consequence of his pursuing any such right or remedy, or
(c)excluding or restricting rules of evidence or procedure.
(4)Regulations may in prescribed cases limit the amount of the liability imposed on the insurer by subsection (1).
(5)This section applies to policies of insurance issued before (as well as those issued after) its coming into force.
(6)References in this section to policies of insurance and their issue include references to contracts of insurance and their making.
Modifications etc. (not altering text)
C1Ss. 20-23 applied (with modifications) (1.10.2008) by Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations 2008 (S.I. 2008/1596), regs. 1(1), 2, Sch. 1 (with reg. 6)