Requirements in respect of policies

(1) In order to comply with the requirements of this Act, a policy of insurance must be a policy which, (a) is issued by a person who is an insurer; (b) insures such person, persons or classes of persons as may be specified in the policy in (Third Party Risks) 9 respect of any liability which may be incurred by him or them in respect of the death or bodily injury to any person or damage to any property caused by or arising out of the use of the motor vehicle on a public road; and (c) insures such person, persons or classes of persons as may be specified in the policy in respect of any statutory liability which may be incurred by him or them under the provisions of this Act relating to the payment of the benefits mentioned in section 5, but such a policy shall not be required to cover, (i) liability in respect of the death arising out of and in the course of his employment of a person in the employment of a person insured by the policy or of bodily injury sustained by such a person arising out of and in the course of his employment; (ii) except in the case of a motor vehicle in which passengers are being carried for hire or reward or by reason of or in pursuance of a contract of employment, liability in respect of the death of or bodily injury to persons being carried in or upon or entering or getting on to or alighting from the motor vehicle at the time of the occurrence of the event out of which the claims arise; (iii) any contractual liability; 10 (Third Party Risks) (iv) liability for death or bodily injury in excess of fifty thousand dollars in respect of any one claim by any one (v) liability for death or bodily injury in excess of two hundred thousand dollars in respect of the total claims arising from any one accident; (vi) liability in excess of twenty thousand dollars for damage to any property, arising from any one accident; (vii) liability for damage to the motor vehicle or to property owned by or in control of those insured. (2) Notwithstanding anything in any enactment, rule of law or the common law, a person issuing a policy of insurance under this section shall be liable to indemnify the persons or classes of persons specified in the policy in respect of any liability which the policy purports to cover in the case of those persons or classes of persons. (3) A policy shall be of no effect for the purposes of this Act unless and until there is issued by the insurer in favour of the person by whom the policy is effected a certificate (in this Act referred to as a “certificate of insurance”) in the prescribed form and containing such particulars of any conditions subject to which the policy is issued and of any other matters as may be prescribed, and different forms and different particulars may be prescribed in relation to different cases or circumstances. (4) Every insurer shall, in addition to the certificate of insurance referred to in subsection (3) of this section, issue in (Third Party Risks) 11 favour of the insured an ‘insurance disc’ in the form and size set out in the First Schedule hereto. (5) Every owner and every person in charge of a motor vehicle shall at all times keep the insurance disc relating to such vehicle fixed and displayed on such vehicle adjacent to the position where the motor vehicle licence is required to be fixed and displayed under the Motor Vehicles and Road Traffic Regulations, made in Subsidiary Legislation 1962, Volume II at page 848.