Road Traffic Act 1988, section 152

Exceptions to section 151

Part VI Third-Party Liabilities

(1)No sum is payable by an insurer under section 151 of this Act—

(a)in respect of any judgment unless, before or within seven days after the commencement of the proceedings in which the judgment was given, the insurer had notice of the bringing of the proceedings, or

(b)in respect of any judgment so long as execution on the judgment is stayed pending an appeal, or

(c)F1056,F1057in connection with any liability if, before the happening of the event which was the cause of the death or bodily injury or damage to property giving rise to the liability, the policy ... was cancelled by mutual consent or by virtue of any provision contained in it ...

(i)before the happening of that event the certificate was surrendered to the insurer, or [F1058(in the case of a certificate delivered otherwise than as described in section 147(1A) above)F1058] the person to whom the certificate was delivered made a statutory declaration stating that the certificate had been lost or destroyed, or

(ii)after the happening of that event, but before the expiration of a period of fourteen days from the taking effect of the cancellation of the policy or security, the certificate was surrendered to the insurer, or [F1059(in the case of a certificate delivered otherwise than as described in section 147(1A) above)F1059] the person to whom it was delivered made a statutory declaration stating that the certificate had been lost or destroyed, or

(iii)either before or after the happening of that event, but within that period of fourteen days, the insurer has commenced proceedings under this Act in respect of the failure to surrender the certificate.

(2)[F1060 No sum is payable by an insurer under section 151 of this Act in connection with any liability if, before the happening of the event which was the cause of the death or bodily injury or damage to property giving rise to the liability, the insurer has obtained a declaration—F1060]

(a)F1061that, apart from any provision contained in the policy ... , he is entitled to avoid [F1062the policy under either of the relevant insurance enactments F1063...F1062] on the ground that it was obtained—

(i)by the non-disclosure of a material fact, or

(ii)by a representation of fact which was false in some material particular, or

(b)if he has avoided the policy [F1064 under either of the relevant insurance enactments F1065...F1064] on that ground, that he was entitled so to do apart from any provision contained in [F1066the policy F1067...F1066]

[F1068 and, for the purposes of this section, “material” means of such a nature as to influence the judgment of a prudent insurer in determining whether he will take the risk and, if so, at what premium and on what conditions. F1068] .

F1069(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1069(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F1070 (5) In this section, “relevant insurance enactment” means the Consumer Insurance (Disclosure and Representations) Act 2012 or Part 2 of the Insurance Act 2015 . F1070]

Definitions used in section 152 1

statutory

“statutory”, in relation to any prohibition, restriction, requirement or provision, means contained in, or having effect under, any enactment (including any enactment contained in this Act),

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

Cases considering section 152 19

Daniel James Colley v Motor Insurers' Bureau

[2022] EWCA Civ 360 · 22 March 2022Limits

Confirms that the domestic avoidance mechanism was the source of the disparity between the insurance cover required by EU law and cover available under national law. (see paras [11]-[12]; [27]-[28]) Limits the insurer's liability by allowing a declaration avoiding the policy after the accident. The court treated that operation as incompatible with the Article 3 obligation; the later amendment was prospective and did not assist the claimant. (see paras [10]-[12]; [28]; [53])

Cameron v Hussain & Anor

[2017] EWCA Civ 366 · 23 May 2017Limits

The court treated section 152 as preserving limited exceptions to the insurer’s section 151 liability, including cancellation and formal avoidance procedures. (see paras [41]; [80]) The majority noted that the insurer could still seek a declaration of non-liability under section 152(2), including where the policy was obtained by material misrepresentation. (see paras [38](iii); [46]; [80]) The court recognised the insurer’s potential declaration that it was entitled to avoid a policy obtained by fraudulent misrepresentation, subject to the statutory timing requirements. (see para [38](iii))

Nawaz & Anor v Crowe Insurance Group

[2003] EWCA Civ 316 · 24 February 2003Interprets

Interprets section 152 as containing exceptions to insurer liability under section 151, including the requirement for prior or prompt notice of proceedings. The notice requirement protects the insurer’s opportunity to take procedural and substantive steps (see paras [6]–[8]). Applies the condition that an insurer is not liable under section 151 unless the statutory notice requirement is satisfied. The court held that failure to give proper notice brings the insurer’s liability to an end (see paras [5]–[8]). Interprets the notice requirement as requiring notice of the bringing of proceedings before, or within seven days after, their commencement. Notice may be oral and may precede proceedings, but it must be sufficiently clear and given to an appropriate recipient; sufficiency is a matter of fact and degree (see paras [8]–[10], [17]–[21], [24]–[26]). Confirms that an insurer may protect itself by obtaining a declaration that it is entitled to avoid the policy or security for material non-disclosure or false representation. This explains why timely notice of proceedings is required (see paras [6]–[8]). Confirms that a person receiving notice of an insurer’s declaratory action may, if desired, be made a party. The court used this provision to explain the protective purpose of notice under section 152(1)(a) (see paras [6]–[8]).

What each judgment says about section 152 is in the case-law panel in the full Act.

Amendments and notes

16 notes from legislation.gov.uk

Amendments

  1. F1056Words in s. 152(1)(c) omitted (1.11.2019) by virtue of The Motor Vehicles (Compulsory Insurance) (Miscellaneous Amendments) Regulations 2019 (S.I. 2019/1047), reg. 1, Sch. 1 para. 15(2) (with reg. 5)
  2. F1057Words in s. 152(1)(c) omitted (30.6.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(7), Sch. 3 para. 5; S.I. 2015/994, art. 9(a) (with Sch. Pt. 3A) (as amended by S.I. 2015/1405, art. 2)
  3. F1058Words in s. 152(1)(c)(i) inserted (30.4.2010) by The Motor Vehicles (Electronic Communication of Certificates of Insurance) Order 2010 (S.I. 2010/1117), art. 4(a)
  4. F1059Words in s. 152(1)(c)(ii) inserted (30.4.2010) by The Motor Vehicles (Electronic Communication of Certificates of Insurance) Order 2010 (S.I. 2010/1117), art. 4(b)
  5. F1060Words in s. 152(2) substituted (1.11.2019) by The Motor Vehicles (Compulsory Insurance) (Miscellaneous Amendments) Regulations 2019 (S.I. 2019/1047), regs. 1, 6(2) (with reg. 8(1)(2))
  6. F1061Words in s. 152(2)(a) omitted (1.11.2019) by virtue of The Motor Vehicles (Compulsory Insurance) (Miscellaneous Amendments) Regulations 2019 (S.I. 2019/1047), reg. 1, Sch. 1 para. 15(3)(a)(i) (with reg. 5)
  7. F1062Words in s. 152(2)(a) substituted (12.8.2016) by Insurance Act 2015 (c. 4), ss. 21(4)(a)(i), 23(2) (with s. 22(1))
  8. F1063Words in s. 152(2)(a) omitted (1.11.2019) by virtue of The Motor Vehicles (Compulsory Insurance) (Miscellaneous Amendments) Regulations 2019 (S.I. 2019/1047), reg. 1, Sch. 1 para. 15(3)(a)(ii) (with reg. 5)
  9. F1064Words in s. 152(2)(b) substituted (12.8.2016) by Insurance Act 2015 (c. 4), ss. 21(4)(a)(ii), 23(2) (with s. 22(1))
  10. F1065Words in s. 152(2)(b) omitted (1.11.2019) by virtue of The Motor Vehicles (Compulsory Insurance) (Miscellaneous Amendments) Regulations 2019 (S.I. 2019/1047), reg. 1, Sch. 1 para. 15(3)(b)(i) (with reg. 5)
  11. F1066Words in s. 152(2)(b) inserted (6.4.2013) by Consumer Insurance (Disclosure and Representations) Act 2012 (c. 6), ss. 11(3)(b), 12(2) (with s. 12(4)(5)); S.I. 2013/450, art. 2
  12. F1067Words in s. 152(2)(b) omitted (1.11.2019) by virtue of The Motor Vehicles (Compulsory Insurance) (Miscellaneous Amendments) Regulations 2019 (S.I. 2019/1047), reg. 1, Sch. 1 para. 15(3)(b)(ii) (with reg. 5)
  13. F1068Words in s. 152(2) added (1.7.1992) by Road Traffic Act 1991 (c. 40, SIF 107:1), s. 48, Sch. 4 para. 66; S.I. 1992/1286, art. 2,Sch.
  14. F1069S. 152(3)(4) omitted (1.11.2019) by virtue of The Motor Vehicles (Compulsory Insurance) (Miscellaneous Amendments) Regulations 2019 (S.I. 2019/1047), regs. 1, 6(3) (with reg. 8(1)(2))
  15. F1070S. 152(5) added (12.8.2016) by Insurance Act 2015 (c. 4), ss. 21(4)(c), 23(2) (with s. 22(1))

Modifications

  1. C177S. 152 excluded (23.6.1999) by S.I. 1999/1736, art. 8(1)(b)(2)(b)