The UK Road Traffic Act On Car Insurance
Road Traffic Act (RTA 1988) as amended by Road Traffic Act 1991 (RTA 1991). These acts deal not only with the car insurance but also with many aspects of road law.
The UK RTA 1988 on car insurance is divided into the following parts:
1) Principal Road safety provisions. This is concerned with driving offences and the promotion of road safety. It is an offence to drive or be in charge of a car when under the influence of drink or drugs. Certain offences were amended by RTA 1991 for example death by reckless driving as prescribed by RTA 1988, no longer exists. There are now two offences: a) causing death by dangerous driving b) causing death by driving when under the influence of drink or drugs.
2) Construction and Use of vehicles and equipment. This deals with testing of vehicles, maintenance and loading of goods vehicles.
3) Licensing of drivers. This includes the test and physical fitness of drivers. The minimum age for obtaining a driving licence in respect to different types of vehicle is as follows: (mopeds 16 and above, cars and motorcycles 17 and above, all commercial vehicles over 7.5 tonnes 21 and above)
4) Licensing of large goods vehicles and passenger carrying vehicles.
5) Driving Instruction. In order to instruct another driver (for payment) you need to be an improved instructor.
6) Third party liabilities. This is a key section in relation to UK car insurance laws. Section 143 deals with compulsory insurance or security against third party risks and users of cars to be insured against third party risks. This part of the act says that persons should not use a car on the road without car insurance, that a person should not let others drive their car without car insurance. Breach of these points is an offence. The word 'use' is much wider than just driving it. The presence on the road is sufficient to constitute use.
For example towing a broken vehicle is termed as use. In the case of Brown v Roberts (1963) a driver was the 'user' when his passenger opened a door into a pedestrian.
For the purpose of the act, motor vehicle means a mechanically propelled vehicle intended for use on the road. In McEachram v Hurst (1978) a moped was being pedaled along a road (its engine was not working) and the moped was held to be a motor vehicle. A 'road' is anywhere the public has access to (including farm roads or cul de sacs).
Car insurance policies must be held by an 'authorised insurer' who are defined in the Motor Insurance Companies Act (1982). They must also be members of the Motor Insurance Bureau (MIB).
Sub-section 3 says that the policy must cover against death or bodily injury or third party property damage. It must also cover motoring within the European Union (EU) The third EU motor insurance directive goes into the minimum standards of cover whilst in Europe.
Car Insurance certificates - Whilst strictly speaking, the insured needs a certificate of car insurance before he can drive, in practice the car insurance broker can hold the cover note on his clients behalf. There are strong laws about cover notes and in particular the dates, it is an illegal to back date cover.
The main purpose of the Road Traffic Acts is to secure, so far as that may be possible, that those killed or injured or who sustain damage to their property as the result of a motor accident have an effective right of redress against those responsible. To do that, it ensures that the victims are not dependent for compensation on the personal wealth of the persons responsible: they are obliged to make adequate provision by way of insurance.
