Motor insurance
Motor insurance

The following PI & Clinical Negligence practice note provides comprehensive and up to date legal information covering:

  • Motor insurance
  • Types of insurer and MIB liability
  • Liability under the insurance policy
  • Liability as Road Traffic Act 1988 insurer
  • Liability as an Article 75 insurer
  • Stolen vehicles
  • Direct rights of action
  • Green Card scheme
  • Accidents abroad

Brexit: The UK's departure from the EU has implications for practitioners considering road traffic accidents. This Practice Note is in the process of being updated in light of these changes. Before continuing your research, see Practice Note: What does IP completion day mean for PI & Clinical Negligence claims?

For guidance on whether judgments of the Court of Justice are binding on UK courts, see Q&A: Are UK courts and tribunals bound by decisions of the Court of Justice of the European Union post-Brexit?

In this Practice Note, the Road Traffic Act 1988 is referred to as RTA 1988.

Types of insurer and MIB liability

In the majority of claims a motor insurer will provide a full indemnity to their insured under a valid policy of insurance. This means that the insurer will accept a contractual liability to pay all damages that fall on the defendant driver.

However, if there is a breach of the policy (either before or after the event) by the insured, the insurer is able to contractually avoid liability to their insured. In that instance the claim is likely to be dealt with by:

  1. the Road Traffic Act insurer: a motor insurer has certain obligations to satisfy judgments obtained by an innocent third party even if there have been breaches of the insurance policy by the insured, failing which

  2. the Article 75 insurer: by an

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