http://www.legislation.gov.uk/ukpga/2018/18/section/4/2021-04-21Automated and Electric Vehicles Act 2018An Act to make provision about automated vehicles and electric vehicles.texttext/xmlenStatute Law Database2022-10-21Expert Participation2021-04-21 PART 1 Automated vehicles: liability of insurers <Abbreviation Expansion="Et cetera" xml:lang="la">etc</Abbreviation>Accident resulting from unauthorised software alterations or failure to update software41An insurance policy in respect of an automated vehicle may exclude or limit the insurer's liability under section 2(1) for damage suffered by an insured person arising from an accident occurring as a direct result of—asoftware alterations made by the insured person, or with the insured person's knowledge, that are prohibited under the policy, orba failure to install safety-critical software updates that the insured person knows, or ought reasonably to know, are safety-critical.2But as regards liability for damage suffered by an insured person who is not the holder of the policy, subsection (1)(a) applies only in relation to software alterations which, at the time of the accident, the person knows are prohibited under the policy.3Subsection (4) applies where an amount is paid by an insurer under section 2(1) in respect of damage suffered, as a result of an accident, by someone who is not insured under the policy in question.4If the accident occurred as a direct result of—asoftware alterations made by an insured person, or with an insured person's knowledge, that were prohibited under the policy, orba failure to install safety-critical software updates that an insured person knew, or ought reasonably to have known, were safety-critical,the amount paid by the insurer is recoverable from that person to the extent provided for by the policy.5But as regards recovery from an insured person who is not the holder of the policy, subsection (4)(a) applies only in relation to software alterations which, at the time of the accident, the person knew were prohibited under the policy.6For the purposes of this section—a“software alterations” and “software updates”, in relation to an automated vehicle, mean (respectively) alterations and updates to the vehicle's software;bsoftware updates are “safety-critical” if it would be unsafe to use the vehicle in question without the updates being installed.S. 4 in force at 21.4.2021 by S.I. 2021/396, reg. 3(a)
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<Strong>PART 1</Strong>
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<Title>
Automated vehicles: liability of insurers
<Abbreviation Expansion="Et cetera" xml:lang="la">etc</Abbreviation>
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<P1group RestrictStartDate="2021-04-21">
<Title>Accident resulting from unauthorised software alterations or failure to update software</Title>
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4
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<Pnumber>1</Pnumber>
<P2para>
<Text>An insurance policy in respect of an automated vehicle may exclude or limit the insurer's liability under section 2(1) for damage suffered by an insured person arising from an accident occurring as a direct result of—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/2018/18/section/4/1/a/2021-04-21" IdURI="http://www.legislation.gov.uk/id/ukpga/2018/18/section/4/1/a" id="section-4-1-a">
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<Text>software alterations made by the insured person, or with the insured person's knowledge, that are prohibited under the policy, or</Text>
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<Pnumber>b</Pnumber>
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<Text>a failure to install safety-critical software updates that the insured person knows, or ought reasonably to know, are safety-critical.</Text>
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<Pnumber>2</Pnumber>
<P2para>
<Text>But as regards liability for damage suffered by an insured person who is not the holder of the policy, subsection (1)(a) applies only in relation to software alterations which, at the time of the accident, the person knows are prohibited under the policy.</Text>
</P2para>
</P2>
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<Pnumber>3</Pnumber>
<P2para>
<Text>Subsection (4) applies where an amount is paid by an insurer under section 2(1) in respect of damage suffered, as a result of an accident, by someone who is not insured under the policy in question.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/2018/18/section/4/4/2021-04-21" IdURI="http://www.legislation.gov.uk/id/ukpga/2018/18/section/4/4" id="section-4-4">
<Pnumber>4</Pnumber>
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<Text>If the accident occurred as a direct result of—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/2018/18/section/4/4/a/2021-04-21" IdURI="http://www.legislation.gov.uk/id/ukpga/2018/18/section/4/4/a" id="section-4-4-a">
<Pnumber>a</Pnumber>
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<Text>software alterations made by an insured person, or with an insured person's knowledge, that were prohibited under the policy, or</Text>
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</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/2018/18/section/4/4/b/2021-04-21" IdURI="http://www.legislation.gov.uk/id/ukpga/2018/18/section/4/4/b" id="section-4-4-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>a failure to install safety-critical software updates that an insured person knew, or ought reasonably to have known, were safety-critical,</Text>
</P3para>
</P3>
<Text>the amount paid by the insurer is recoverable from that person to the extent provided for by the policy.</Text>
</P2para>
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<Pnumber>5</Pnumber>
<P2para>
<Text>But as regards recovery from an insured person who is not the holder of the policy, subsection (4)(a) applies only in relation to software alterations which, at the time of the accident, the person knew were prohibited under the policy.</Text>
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</P2>
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<Pnumber>6</Pnumber>
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<Text>For the purposes of this section—</Text>
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<Pnumber>a</Pnumber>
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<Text>
“software alterations” and “
<Term id="term-software-updates">software updates</Term>
”, in relation to an automated vehicle, mean (respectively) alterations and updates to the vehicle's software;
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/2018/18/section/4/6/b/2021-04-21" IdURI="http://www.legislation.gov.uk/id/ukpga/2018/18/section/4/6/b" id="section-4-6-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>software updates are “safety-critical” if it would be unsafe to use the vehicle in question without the updates being installed.</Text>
</P3para>
</P3>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
</Part>
</Body>
</Primary>
<Commentaries>
<Commentary id="key-20028a1660535efdabd185a668cf0a99" Type="I">
<Para>
<Text>
<CitationSubRef SectionRef="section-4" URI="http://www.legislation.gov.uk/id/ukpga/2018/18/section/4" id="c7vn4nyg4-00232">S. 4</CitationSubRef>
in force at 21.4.2021 by
<Citation URI="http://www.legislation.gov.uk/id/uksi/2021/396" Class="UnitedKingdomStatutoryInstrument" Year="2021" Number="396" Title="The Automated and Electric Vehicles Act 2018 (Commencement No. 1) Regulations 2021" id="c7vn4nyg4-00233">S.I. 2021/396</Citation>
,
<CitationSubRef SectionRef="regulation-3-a" URI="http://www.legislation.gov.uk/id/uksi/2021/396/regulation/3/a" CitationRef="c7vn4nyg4-00233" Operative="true" id="c7vn4nyg4-00234">reg. 3(a)</CitationSubRef>
</Text>
</Para>
</Commentary>
</Commentaries>
</Legislation>