Motor Accident Injury Compensation Bill

House of Commons

Session 1997-98
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Arrangement of Clauses (Contents)

Motor Accident Injury Compensation Bill

A
B I L L
TO
Ensure compensation for persons injured as a result of road traffic accidents.
BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-

Users of motor vehicles to be insured against personal injury compensation risks.     1. - (1) Subject to subsection (3) below-

(a) a person must not use a motor vehicle on a road or in any other public place unless there is in force in relation to the use of the vehicle by that person such a policy of insurance against personal injuries as complies with the requirements of section 2 below, and

(b) a person must not cause or permit any other person to use a motor vehicle on a road or in any other public place unless there is in force in relation to the use of the vehicle by that other person such a policy of insurance against personal injuries as complies with the requirements of section 2 below.

    (2) If a person acts in contravention of subsection (1) above he is guilty of an offence.

    (3) A person charged of using a motor vehicle in contravention of this section shall not be convicted if he proves-

(a) that the vehicle did not belong to him and was not in his possession under a contract of hiring or a loan,

(b) that he was using the vehicle in the course of his employment, and

(c) that he neither knew nor had reason to believe that there was not in force in relation to the vehicle such a policy of insurance as is mentioned in subsection (1) above.

Requirement in respect of policies of insurance.     2. - (1) In order to comply with the requirements of section 1 above, a policy of insurance must satisfy the following conditions.

    (2) The policy must be issued by an authorised insurer.

    (3) Subject to subsections (5) and (6) below, the policy must insure such persons as may be specified in the policy in respect of claims for full compensation for personal injury or death to the driver, his passengers or any other person not required to be insured by section 1 above which has been caused by the use of a vehicle in a public place.

    (4) The policy shall cover the insured for legal costs in respect of claims made under it.

    (5) The policy shall not by virtue of subsection (3) above be required to provide cover-

(a) for claims of a value under £100, or

(b) for any single claim of a value greater than £100,000.

    (6) The policy shall not by virtue of subsection (3) above be required to provide cover-

(a) for a driver or any other person whose injuries have been deliberately self-inflicted, or

(b) for a driver who is convicted of a driving-related offence which is punishable by six months imprisonment or more and which had real connection with the accident.

    (7) Where the amount of full compensation under subsection (3) above has not been determined within 3 months of the date of the accident, the insurer shall make interim payments to those covered by the policy.

    (8) The Secretary of State may by regulations subject to annulment in pursuance of a resolution of either House of Parliament amend the sums in subsection (5) above.

Penalties.     3. A person who is guilty of an offence under this Act shall be liable to the same penalties as a person who is guilty of an offence under section 143 of the Road Traffic Act 1988.

Payment of compensation by the insurer.     4. Where a person has sustained injury or damage as a result of the use by another of a motor vehicle, that person shall be entitled to full compensation assessed on normal principles of common law, which shall be payable by the insurer of the person who used the vehicle.

© Parliamentary copyright 1998
Prepared 19 June 1998

Motor Accident Injury Compensation Bill

	A B I L L TO Ensure compensation for persons injured as a result of road traffic accidents. BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-
Users of motor vehicles to be insured against personal injury compensation risks.	1. - (1) Subject to subsection (3) below-
	(a) a person must not use a motor vehicle on a road or in any other public place unless there is in force in relation to the use of the vehicle by that person such a policy of insurance against personal injuries as complies with the requirements of section 2 below, and
	(b) a person must not cause or permit any other person to use a motor vehicle on a road or in any other public place unless there is in force in relation to the use of the vehicle by that other person such a policy of insurance against personal injuries as complies with the requirements of section 2 below.
	(2) If a person acts in contravention of subsection (1) above he is guilty of an offence.
	(3) A person charged of using a motor vehicle in contravention of this section shall not be convicted if he proves-
	(a) that the vehicle did not belong to him and was not in his possession under a contract of hiring or a loan,
	(b) that he was using the vehicle in the course of his employment, and
	(c) that he neither knew nor had reason to believe that there was not in force in relation to the vehicle such a policy of insurance as is mentioned in subsection (1) above.
Requirement in respect of policies of insurance.	2. - (1) In order to comply with the requirements of section 1 above, a policy of insurance must satisfy the following conditions.
	(2) The policy must be issued by an authorised insurer.
	(3) Subject to subsections (5) and (6) below, the policy must insure such persons as may be specified in the policy in respect of claims for full compensation for personal injury or death to the driver, his passengers or any other person not required to be insured by section 1 above which has been caused by the use of a vehicle in a public place.
	(4) The policy shall cover the insured for legal costs in respect of claims made under it.
	(5) The policy shall not by virtue of subsection (3) above be required to provide cover-
	(a) for claims of a value under £100, or
	(b) for any single claim of a value greater than £100,000.
	(6) The policy shall not by virtue of subsection (3) above be required to provide cover-
	(a) for a driver or any other person whose injuries have been deliberately self-inflicted, or
	(b) for a driver who is convicted of a driving-related offence which is punishable by six months imprisonment or more and which had real connection with the accident.
	(7) Where the amount of full compensation under subsection (3) above has not been determined within 3 months of the date of the accident, the insurer shall make interim payments to those covered by the policy.
	(8) The Secretary of State may by regulations subject to annulment in pursuance of a resolution of either House of Parliament amend the sums in subsection (5) above.
Penalties.	3. A person who is guilty of an offence under this Act shall be liable to the same penalties as a person who is guilty of an offence under section 143 of the Road Traffic Act 1988.
Payment of compensation by the insurer.	4. Where a person has sustained injury or damage as a result of the use by another of a motor vehicle, that person shall be entitled to full compensation assessed on normal principles of common law, which shall be payable by the insurer of the person who used the vehicle.