Road Traffic Act 1961

Approved policy of insurance.

62

62.(1) A policy of insurance shall be an approved policy of insurance for the purposes of this Act if, but only if, it complies with the following conditions:

(a) it is issued by a vehicle insurer to a person (in this Act referred to as the insured) named therein;

(b) the insurer by whom it is issued binds himself by it to insure the insured against all sums without limit which the insured or his personal representative shall become liable to pay to any person F146[] whether by way of damages or costs on account of injury to person or property caused by the negligent use, during the period (in this Act referred to as the period of cover) specified in that behalf in the policy, of a mechanically propelled vehicle to which the policy relates, by the insured or by any of such other persons (if any) as are mentioned or otherwise indicated in that behalf in the policy;

(c) the liability of the insurer under the policy is not subject to any condition, restriction, or limitation prescribed as not to be inserted in an approved policy of insurance; F146[]

F147[(cc) The liability of the insurer extends, in addition to the negligent use of the mechanically propelled vehicle in the State, to the negligent use of the vehicle in the designated territories according to the law relating to compulsory insurance against civil liability in respect of the use of mechanically propelled vehicles in force in those territories or to the extent required by this Part, whichever is the greater; ]

(d) the period of cover is not capable of being terminated before its expiration by effluxion of time by the insurer save either with the consent of the insured or after seven days’ notice in writing to the F148[insured; and]

F149[(e) the liability of the insurer extends to any loss or injury suffered by the victim, due to the negligent use of a mechanically propelled vehicle, during a direct journey between two Member States, if there is no national insurers bureau responsible for the territory which is being crossed in accordance with the law relating to compulsory insurance against civil liability in respect of the use of mechanically propelled vehicles in that territory. ]

F150[(1A) For the purpose of this Part a policy of insurance issued in accordance with the laws on compulsory insurance in force in any of the designated territories, other than the State, in respect of a mechanically propelled vehicle normally based in that territory is an approved policy of insurance. ]

(2) A policy of insurance which complies with the conditions specified in subsection (1) of this section shall not be prevented from being an approved policy of insurance merely by reason of its containing provisions additional to and not inconsistent with the provisions required by those conditions.

F151[(3) A policy of insurance shall not be prevented from being an approved policy of insurance merely by reason of the insurance being subject to a limitation or an exception referred to in subsection (2) of section 56 of this Act.]

F152[(4) In this section "national insurers bureau" means a professional organisation which is constituted in accordance with Recommendation No. 5 adopted on 25 January 1949 by the Road Transport Sub-committee of the Inland Transport Committee of the United Nations Economic Commission for Europe and which groups together insurance undertakings which, in a state, are authorised to conduct the business of motor vehicle insurance against civil liability. ]

Annotations

Amendments:

F146

Deleted (4.07.2008) by European Communities (Motor Insurance) Regulations 2008 (S.I. No. 248 of 2008), reg. 3(a)(i) and (ii).

F147

Substituted (4.07.2008) by European Communities (Motor Insurance) Regulations 2008 (S.I. No. 248 of 2008), reg. 3(a)(iii).

F148

Substituted (4.07.2008) by European Communities (Motor Insurance) Regulations 2008 (S.I .No. 248 of 2008), reg. 3(a)(iv).

F149

Inserted (4.07.2008) by European Communities (Motor Insurance) Regulations 2008 (S.I. No. 248 of 2008), reg. 3(a)(v).

F150

Substituted (4.07.2008) by European Communities (Motor Insurance) Regulations 2008 (S.I. No. 248 of 2008), reg. 3(b).

F151

Substituted (11.12.1987) by European Communities (Road Traffic) (Compulsory Insurance) (Amendment) Regulations 1987 (S.I. No. 322 of 1987), reg. 5.

F152

Inserted (4.07.2008) by European Communities (Motor Insurance) Regulations 2008 (S.I. No. 248 of 2008), reg. 3(c).

Editorial Notes:

E635

Power pursuant to subs. (1)(c) and s. 5 exercised (31.12.1988) by Road Traffic (Compulsory Insurance) (Amendment) Regulations 1987 (S.I. No. 321 of 1987).

E636

Power pursuant to subs. (1)(c) and s. 5 exercised (23.11.1977) by Road Traffic (Compulsory Insurance) (Amendment) Regulations 1977 (S.I. No. 359 of 1977).

E637

Power pursuant to subs. (1)(c) and s. 5 exercised (18.03.1964) by Road Traffic (Compulsory Insurance) (Amendment) Regulations 1964 (S.I. No. 58 of 1964).

E638

Power pursuant to subs. (1)(c) and ss. 5, 63(1)(c), 65(1)(a), 66, 68(1), 75 and 79 exercised (1.05.1962) by Road Traffic (Compulsory Insurance) Regulations 1962 (S.I. No. 14 of 1962).

E639

Previous affecting provision: subss. (1)(cc) substituted (31.12.1995) by European Communities (Road Traffic) (Compulsory Insurance) (Amendment) Regulations 1992 (S.I. No. 347 of 1992), reg. 4(2). Subs. (1)(cc) substituted as per F-note above.

E640

Previous affecting provision: subss. (1)(cc), (1A) inserted (5.08.1975) by European Communities (Road Traffic) (Compulsory Insurance) Regulations 1975 (S.I. No. 178 of 1975), regs. 4 and 5. Subs. (1)(cc) substituted as per E-note above and subs. (1A) substituted as per F-note above.