Road Traffic Act 1988, section 145

Requirements in respect of policies of insurance

Part VI Third-Party Liabilities

(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.

(3)Subject to subsection (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 or damage to property caused by, or arising out of, the use of the vehicle on a road[F989 or other public placeF989] in Great Britain, and

[F990 (aa)must, in the case of a vehicle normally based in the territory of [F991 aF991] member State, insure him or them in respect of any civil liability which may be incurred by him or them as a result of an event related to the use of the vehicle in Great Britain if,—

(i)according to the law of that territory, he or they would be required to be insured in respect of a civil liability which would arise under that law as a result of that event if the place where the vehicle was used when the event occurred were in that territory, and

(ii)the cover required by that law would be higher than that required by paragraph (a) above, andF990]

(b)must [F992 in the case of a vehicle normally based in Great BritainF992] insure him or them in respect of any liability which may be incurred by him or them in respect of the use of the vehicle and of any trailer, whether or not coupled, in the territory [F993of Northern Ireland andF993] of each of the member States of the [F994European UnionF994] according to

[F995 (i)the law on compulsory insurance against civil liability in respect of the use of vehicles [F996 applicable in the territory in whichF996] the event giving rise to the liability occurred; or

(ii)if it would give higher cover, the law which would be applicable under this Part of this Act if the place where the vehicle was used when that event occurred were in Great Britain; andF995]

(c)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 subsection (3)(a) above, be required—

(a)to cover 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)to provide insurance of more than [F997£1,200,000F997] in respect of all such liabilities as may be incurred in respect of damage to property caused by, or arising out of, any one accident involving the vehicle, or

(c)to cover liability in respect of damage to the vehicle, or

(d)to cover liability in respect of damage to goods carried for hire or reward in or on the vehicle or in or on any trailer (whether or not coupled) drawn by the vehicle, or

(e)to cover any liability of a person in respect of damage to property in his custody or under his control, or

(f)to cover any contractual liability.

[F998 (4A)In the case of a person—

(a)carried in or upon a vehicle, or

(b)entering or getting on to, or alighting from, a vehicle,

the provisions of paragraph (a) of subsection (4) above do not apply unless cover in respect of the liability referred to in that paragraph is in fact provided pursuant to a requirement of the M36 Employers’ Liability (Compulsory Insurance) Act 1969. F998]

[F999 (5) “Authorised insurer” has the same meaning as in section 95. F999]

(6)F1000If any person or body of persons ceases to be a member of the Motor Insurers’ Bureau, that person or body shall not by virtue of that cease to be treated as an authorised insurer for the purposes of this Part of this Act . . . —

(a)in relation to any policy issued by the insurer before ceasing to be such a member, or

(b)F1000in relation to any obligation (whether arising before or after the insurer ceased to be such a member) which the insurer may be called upon to meet under or in consequence of any such policy or under section 157 of this Act . . . by virtue of making a payment in pursuance of such an obligation.

Definitions used in section 145 5

policy of insurance

“policy of insurance” includes a covering note,

Defined in s.161(1) · see it in the full Act
road

“road”

Defined in s.192(1) · see it in the full Act
trailer

“trailer” means a vehicle drawn by a motor vehicle.

Defined in s.185(1) · see it in the full Act
emergency treatment

(b) the treatment or examination so required (in this Part of this Act referred to as “emergency treatment”) is effected by a legally qualified medical practitioner.

Defined in s.158(1) · see it in the full Act

(b) the treatment or examination so required (in this Part of this Act referred to as “emergency treatment”) is effected by a legally qualified medical practitioner.

Defined in s.158(1) · see it in the full Act
goods

“goods” includes goods or burden of any description,

Defined in s.192(1) · see it in the full Act

Cases considering section 145 45

R & S Pilling t/a Phoenix Engineering v UK Insurance Ltd

[2019] UKSC 16 · 27 March 2019Limits

This subsection introduces the statutory conditions which a compliant motor insurance policy must satisfy. (see para [12]) The provision requires third-party insurance for liability caused by, or arising out of, use of a vehicle on a road or other public place. Use includes control, management or operation of an immobilised vehicle there, but causation has reasonable limits. Substantial repairs on private premises and damage caused by negligent welding fell outside it. (see paras [33]-[45]; [53]-[55]) At the material time the compulsory policy was not required to insure property damage exceeding £1 million. (see para [12])

Cameron v Hussain & Anor

[2017] EWCA Civ 366 · 23 May 2017Interprets

The majority treated section 145 as defining liabilities required to be covered and accepted that the proposed judgment would concern a liability covered if the policy insured all persons under section 151(2)(b). (see paras [38](ii); [39]; [60]) The dissent referred to section 145(2) when describing the statutory requirements for compulsory insurance and authorised insurers; the majority did not rely on that detail in deciding the appeal. (see para [108])

UK Insurance Ltd v R&S Pilling (t/a Phoenix Engineering)

[2017] EWCA Civ 259 · 12 April 2017Interprets

The policy, booklet and certificate were read together. Certification that the policy satisfied relevant law extended cover to matters required by section 145, without narrowing express policy wording. The provision also formed part of the statutory framework for interpreting vehicle use. (see paras [40]-[49]; [53]-[69]) Section 145(3) was interpreted purposively in light of the Directive. Use is not confined to driving and includes an activity consistent with the vehicle’s normal function; repairs to restore immediate roadworthiness can qualify. (see paras [54]-[73]) Paragraph (a) was treated as covering statutory use on a road or public place, but the contractual policy was not narrowed to that geographical scope. Repair work may be use and damage may arise out of use where it is a relevant causal contribution. (see paras [40]-[49]; [58]-[73]) The court used subsection (4) to contrast the statutory property-damage limit with the policy’s higher £20 million cover, reinforcing that the statutory scheme extended rather than narrowed the contractual promise. (see para [44])

25 more judgments, and what each says about section 145, are in the case-law panel in the full Act.

Amendments and notes

15 notes from legislation.gov.uk

Amendments

  1. F989Words in s. 145(3)(a) inserted (3.4.2000) by S.I. 2000/726, art. 2(3)
  2. F990S. 145(3)(aa) inserted (31.12.1992) by S.I. 1992/3036, reg. 2(1).
  3. F991Word in s. 145(3)(aa) substituted (31.12.2020) by The Motor Vehicles (Compulsory Insurance) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/551), regs. 1(1), 2(a); 2020 c. 1, Sch. 5 para. 1(1)
  4. F992Words in s. 145(3)(b) inserted (31.12.1992) by S.I. 1992/3036, reg. 2(2)
  5. F993Words in s. 145(3)(b) substituted (31.12.2020) by The Motor Vehicles (Compulsory Insurance) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/551), regs. 1(1), 2(b)(i); 2020 c. 1, Sch. 5 para. 1(1)
  6. F994Words in Act substituted (22.4.2011) by The Treaty of Lisbon (Changes in Terminology) Order 2011 (S.I. 2011/1043), arts. 2, 3, 4 (with arts. 3(2)(3), 4(2), 6(4)(5))
  7. F995Words in s. 145(3)(b) substituted (31.12.1992) by S.I. 1992/3036, reg. 2(2).
  8. F996Words in s. 145(3)(b)(i) substituted (31.12.2020) by The Motor Vehicles (Compulsory Insurance) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/551), regs. 1(1), 2(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)
  9. F997Word in s. 145(4)(b) substituted (31.12.2016) by The Motor Vehicles (Compulsory Insurance) Regulations 2016 (S.I. 2016/1193), regs. 1, 2(2)
  10. F998S. 145(4A) inserted (31.12.1992) by S.I. 1992/3036, reg. 2(3).
  11. F999S. 145(5) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 313
  12. F1000Words in s. 145(6) repealed (29.1.2007) by Health and Social Care (Community Health and Standards) Act 2003 (c. 43), ss. 196, 199, Sch. 14 Pt. 3; S.I. 2006/3397, art. 3 (subject to art. 4); S.S.I. 2007/10, art. 2(2)(g) (with art. 3(2)(a))

Modifications

  1. C170S. 145 excluded (23.6.1999) by S.I. 1999/1736, art. 8(1)(b)(2)(b)
  2. C171S. 145(2) excluded by virtue of S.I. 1973/2143, reg. 8 (as amended by S.I. 1974/791, reg. 6); 1988 c. 54, s. 2

Marginal citations

  1. M361969 c. 57