The Regulations on
Page 53
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THIRD-PARTY INSURANCE
THAT part of the Road Traffic Act, 1930, which relates to the provision to be made against third-party risks arising out of the use of motor vehicles will, as is now common knowledge, come into force on January 1st next, and as from that date it will be an offence for any person to drive a motor vehicle on a road unless he be covered against the third-party risks speeified in the Act.
The Minister has been informed that the insurance companies and underwriters have in hand the preparation of the necessary certificates in connection with all insured vehicles, and that these will be forwarded to policy holders, without application, before the close of the year.
In the case of employed drivers the necessary cover will normally be obtained by the employer, as the Act provides that no person. may cause or permit another to drive unless, -when so driving, he has cover against third-party risks.
Privileges of Large Companies.
The Act provides alternatives to insurance hi the case of persons or organizations which have substantial financial resources and are in a position either to deposit 115,000 with the Accountant General of the Supreme Court, or to obtain a " security " given by a company or body of persons authorized to do so by the Act guaranteeing to meet any default in the satisfaction of third-party claims. Appropriate certificates are provided for in the Act and in the draft regulations made thereunder, also in the case of the local and police authorities which are not required to be covered against these risks.
Copies of the draft regulations can be obtained by any public or representative body on application to the Roads Department, Ministry of Transport.
This part of the Act does not apply to invalid carriages, tramcars or trolley-buses.
In the following summary we refer by letter to certain forms, but these will not be reproduced, althoUgh they are included in the draft regulations.
• Part 1.
4. (i) Points out that a company shall issue to every holder of a security or policy other than a covering note issued by the company: (a) in the case of a policy relating to a specified vehicle or vehicles, a certificate of insurance in form A or a certificate of security in form D in respect of each vehicle ; (b) in the case of a policy not relating to any specified vehicle or vehicles, such number of certificates in the form B or form D, as may be necessary in the production of evidence that the vehicle is not being driven in contravention of section 35 of the Act. Provided that where a security is intended to cover more than 10 vehicles at one time, the issuing company may, subject to the consent of the Minister of Transport, issue one certificate only and duplicate copies of such certificate dilly authenticated.
(ii) Every covering note issued by a company shall have printed thereon a certificate of insurance in the form C.
5. The certificates shall be issued: (a) in the' case of policies or securities which are in force on January 1st 1931, on or before December 21st, 1930; (b) in any other case, on or before the date of issue or renewal of the policy.
6. Where under the terms of a policy relating to a specified vehicle, the holder is entitled to drive any other vehicle, the company by which the policy was issued may and shall on demand being made by the holder, issue a further certificate in form A or B.
7. The following evidence that a motor vehicle is not being driven in contravention of the Act may be produced by the driver on request by a police constable and as an alternative to the production of a certificate : (a) a duplicate copy of a certificate; (b) Where £15,000 has been deposited, a certificate in form E signed by the owner of the motor vehicle or by some person authorized to do so ; (c) in the case of a motor vehicle owned by a local authority, by a police authority, or by the Receiver for the Metropolitan Police District, a certificate in form F.
8. Any certificate issued in accordance with sub-paragraphs (b) and (e) of paragraph 7 shall be destroyed before the vehicle to which it relates is sold or otherwise disposed of.
9. (a) Every certificate shall be printed and completed in black on white paper ; (b) no certificate so issued shall contain any advertising matter, but the name and address of the company issuing the certificate or a reproduction of the seal -or monogram or similar device of the company shall not be deemed to be advertising matter if it be printed at the foot or on the back of the certificate.
10. Any person applying for a licence under section 13 of the Finance Act, 1920, as amended by any subsequent enactment must produce to the licensing authority a certificate of insurance or security, or a duplicate copy of these indicating that on the date when the licence comes into operation there Will be in force a policy or security in relation to the user of the motor vehicle, provided that there may be produced in lieu thereof (I) 'where £15,000 has been lodged, a certificate signed by the owner of the vehicle or by an authorized person that such a deposit has been made; (ii) in the ease of vehicles owned by, a local authority or the police, a certificate signed by an .authorized person that the application for a licence is made for a vehicle owned by, the said authority ; provided further that a person engaged in the business of letting motor vehicles on hire shall not, when applying for a licence, be required to comply with the first paragraph of this regulation if the vehicle is to be used solely for the purpose of being let on hire aud driven by the person hiring the vehicle or by persons under his control.
11. (a) Every company issuing a policy or security shall keep a record of the following particulars relative thereto :— (i) name and address of the person to whom the policy, security or certificate is issued; (ii) where it relates to a specified vehicle or vehicles, the index mark and registration number of each vehicle ; (iii) the dates on which the policy comes into force and expires; (iv) in the case of a policy the conditions subject to which the persons specified in the policy will be indemnified ; (v) in the case of a security the conditions subject to which the undertaking given by the ;company will be implemented.
(b) Every local authority shall keep a record of the vehicles owned by it in respect of which; a policy or security has not been obtained, and of certificates issued by it, also of the withdrawal or destruction of any such certificate.
(c) Any person who has made the necessary monetary deposit must keep a record of the motor vehicles owned by him and of any certificates issued in respect of-these vehicles, also of the withdrawal or destruction of any such certificate.
(d) These particulars must be furnished, without charge, to the Minister of Transport or any Chief Officer of the Police, on request.
Ineffective Policies.
12. Where to the knowledge of a company a policy or certificate ceases to be effective without the consent of the person to whom it was issued, otherwise than by effiuxion of time or by reason of his death, the company must forthwith notify the Minister of Transport of the date on which the policy or security ceased to be effective.
13. Where with the consent of the person to whom it was issued, a policy or secnrity is suspended or ceases to be effective, otherwise than by effluxion of time, such person must return any relative certificates to the company by which they were issued, and a new policy shall not be issued to that person nor shall the said policy be transferred to any other person unless and until the certificates have been returned to the company or it is satisfied that they have been lost or destroyed.
14. Where any company by which a certificate of insurance or security has been issued is satisfied that the certificate has become defaced, lost or destroyed, it shall, if requested to do so by the person to whom the certificate was issued, provide him with a fresh certificate.
Part 2 of the regulations concerns persons bringing motor vehicles into Great Britain and making only a temporary stay, and Part 3 deals with definitions of little interest. In Part 4 it is pointed out that if any person acts in contravention of or fails to comply with these regulations, he shall be liable to a fine not exceeding £5.