Report No. 85
England-extra statutory machinery.- These provisions first passed in 1930 left one gap-a motorist might have no, or no effective, insurance. This gap was filled by an extra-statutory piece of machinery described below. The statutory provision-section 145 of the Road Traffic Act, 1972-reads:
"145. (1) In order to comply with the requirements of this Part of this Act, a policy of insurance must satisfy the following conditions.
(2) The policy must be issued by an authorised insurer, that is to say, a person or body of persons carrying on motor vehicle insurance business in Great Britain.
(3) Subject to sub-section (4) below, the policy:-
(a) must insure such person, persons or classes of persons as may be specified in the policy in respect of any liability which may be incurred by him or them in respect of the death of or bodily injury to any person caused by, or arising out of, the use of the vehicle on a road; and
(b) must also insure him or them in respect of any liability which may be incurred by him or them under the provisions of this part of this Act relating to payment for emergency treatment.
(4) The policy shall not, by virtue of sub-section (3)(a) above, be required to cover-
(a) liability in respect of the death, arising out of and in the course of his employment, of a person in the employment of a person insured by the policy or of bodily injury sustained by such a person arising out of and in the course of his employment; or
(b) any contractual liability."
The extra-statutory machinery is in the form of an agreement.