Q&As

When can a motor insurer obtain a declaration under section 152 of the Road Traffic Act 1988?

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Produced in partnership with Andrew Wilson
Published on LexisPSL on 18/10/2019

The following PI & Clinical Negligence Q&A produced in partnership with Andrew Wilson provides comprehensive and up to date legal information covering:

  • When can a motor insurer obtain a declaration under section 152 of the Road Traffic Act 1988?

When can a motor insurer obtain a declaration under section 152 of the Road Traffic Act 1988?

Section 151 of the Road Traffic Act 1988 (RTA 1988) provides that a motor insurer is bound to meet a judgment in respect of a relevant liability obtained against a policyholder, subject to certain conditions being satisfied. RTA 1988, s 151(5) sets out that notwithstanding that the insurer may be entitled to avoid or cancel the policy or may already have avoided or cancelled it, that insurer must (subject to satisfaction of certain conditions) meet any judgment against the policyholder (or other insured person) in respect of:

  1. damages for personal injury or death

  2. damage to property

  3. costs

RTA 1988, s 152(1)(c) provides that no sum is payable by an insurer under RTA 1988, s 151 if, before the accident, the policy or security was cancelled by mutual consent or by virtue of any provision contained

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