Q&As

This question concerns the operation of section 151 of the Road Traffic Act 1988 (RTA 1988). Where a party 1 sells his vehicle to a party 2 but does not cancel his insurance policy, if party 2 remains uninsured and has an accident, the insurer for party 1 is obliged to pay out under RTA 1988, s 151. In this situation, can the insurer seek recovery of these costs from party 1 and/or party 2?

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Published on LexisPSL on 27/04/2016

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

  • This question concerns the operation of section 151 of the Road Traffic Act 1988 (RTA 1988). Where a party 1 sells his vehicle to a party 2 but does not cancel his insurance policy, if party 2 remains uninsured and has an accident, the insurer for party 1 is obliged to pay out under RTA 1988, s 151. In this situation, can the insurer seek recovery of these costs from party 1 and/or party 2?
  • Road traffic insurer
  • Article 75 insurer

This question concerns the operation of section 151 of the Road Traffic Act 1988 (RTA 1988). Where a party 1 sells his vehicle to a party 2 but does not cancel his insurance policy, if party 2 remains uninsured and has an accident, the insurer for party 1 is obliged to pay out under RTA 1988, s 151. In this situation, can the insurer seek recovery of these costs from party 1 and/or party 2?

Road traffic insurer

As noted in Practice Note: Motor insurance in the section entitled Liability as Road Traffic Act 1998 insurer:

'There are several ways in which the obligation as road traffic insurer may be avoided:

  1. where ownership of the vehicle has been transferred away from the insured prior to the

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