There shall be in force in respect of a dog which is to be exempted from the provisions of section 1(3) of the Act a policy of insurance which F1, subject to such terms, conditions, limitations and exclusions as may be contained in the policy, insures the person specified in the policy F2(the policyholder) in respect of the death of, or bodily injury to, any person caused by the dog F3other than the death of, or bodily injury to, a member of the policyholder’s family who resides permanently with him or a person in respect of whom the policyholder is required to maintain a policy of insurance by virtue of the Employers' Liability (Compulsory Insurance) Act 1969.

A person wishing to claim exemption shall provide the Agency with such evidence as they may require of the fact that the dog is insured in accordance with paragraph (1).