2.1 MINIMUM LEVEL OF COVER – “THIRD PARTY MOTOR INSURANCE”

• Under the Road Traffic Act 1988, the user of a motor vehicle must have insurance covering the statutory minimum liabilities.
• Death or injury to third parties – for example, another motorist or a pedestrian.
• Damage to third-party property – for example, damage to another vehicle in a collision.
• The minimum cover does not insure damage to the driver's own vehicle.
• Medical treatment given to third parties following an accident must also be covered.
• Health and ambulance authorities can recover the cost of treatment provided to third parties.
• Passenger cover is compulsory.
• Motor policies must provide unlimited cover for liabilities for death or bodily injury caused to people in the vehicle.
• Passenger cover includes employees, fare-paying passengers and hitch-hikers.
• A notice in the cab stating that passengers travel at their own risk does not remove the operator's liability.
• Third-party cover is the absolute minimum; operators may voluntarily add fire, theft or comprehensive cover.
• Comprehensive insurance can cover damage to the operator's own vehicle as well as third-party damage.

2.2 EXEMPTIONS

• The source identifies certain road users as exempt from the requirement to insure vehicles owned by them:
• Local authorities.
• Police
• Crown vehicles.
• Ambulances and other vehicles operated by Health Authorities.

2.3 AUTHORISED INSURER

• An insurance policy is only valid if taken out with an insurer who is a member of the Motor Insurers' Bureau (MIB), according to the source.
• The MIB was established by statute in the 1940s.
• The MIB operates the Uninsured Drivers Agreement.
• This agreement seeks to satisfy unsettled judgments arising from statutory third-party insurance liabilities.
• The Motor Insurers' Information Centre (MIIC) holds the UK database on insured vehicles and drivers.
• The database enables police to check whether a vehicle or driver is insured.
• The database also supports the requirements described in the source under the 4th EU Insurance Directive for handling cross-border motor claims.

2.4 INSURANCE CERTIFICATE – PURPOSE

• A policy does not become effective until a certificate of insurance is issued by the insurer.
• The certificate states the conditions under which the policy is issued and its effective dates.
• A cover note is a temporary certificate issued for a limited period until the proper certificate is issued.

2.5 PRODUCTION OF THE CERTIFICATE

• The owner or driver must produce the insurance certificate when required by a police officer.
• If the certificate is not immediately available, the source states that it may be produced within 7 days, or as soon as reasonably practicable, at a police station of the person's choice.
• The certificate does not necessarily have to be produced personally.
• DVSA examiners can also request production of an insurance certificate for a goods vehicle.

2.6 ISSUE AND RETURN OF THE CERTIFICATE

• The insurer must issue the certificate no later than 4 days after the policy is issued or renewed, according to the source.
• If the policy is cancelled, the certificate must be returned to the insurer within 7 days.

2.7 ACTIONS FOLLOWING AN ACCIDENT

• Motor insurance policies normally specify what the insured must do following an accident.
• There is no statutory requirement in the source to report every accident to the insurer, but insurers normally require immediate notification.
• Insurers commonly provide their own accident report form.
• Failure to notify the insurer can lead to the policy being invalidated.
• Other circumstances that may invalidate a policy include:
• The vehicle was not maintained in a safe and roadworthy condition.
• The driver did not hold the correct licence category.
• The vehicle was not specified on the insurance policy.
• Unauthorised modifications had been made to the vehicle.
• The insurance application contained false statements.
• The driver was under the influence of drink or drugs.

2.8 UK MOTOR INSURANCE – CONCLUSION

• Unless specifically exempt, vehicles must have insurance meeting the statutory minimum requirements.
• Using a vehicle without valid insurance can lead to prosecution of both driver and operator.
• Under continuous enforcement, it is an offence to keep an uninsured vehicle, not merely to drive it.
• The requirement is lifted where the vehicle keeper makes a Statutory Off Road Notification (SORN) to DVLA.
• The source identifies a defence for an employee driver who can show that the vehicle did not belong to them, was being used in the course of employment and they had no reason to believe that insurance was absent.