Explanatory note

Part 1 of this order amends the Road Traffic Act 1988 (“the 1988 Act”). Part 2 of the order makes consequential amendments to the Motor Vehicles (Third Party Risks) Regulations 1972 (S.I. 1972/1217, “the 1972 regulations”).

The amendments in this order relate only to certificates of insurance and not to securities or to certificates of security.

The amendments to the 1988 Act are as follows.

Article 3(2) inserts into section 147 (issue and surrender of certificates) new subsections (1A), (1B), (1C), (1D) and (1E). These permit certificates of motor insurance to be delivered by electronic means and impose conditions to be met.

Article 3(3) amends section 147(4) (requirement for surrender of certificate, or statutory declaration, on cancellation of policy) to exclude from it certificates delivered as described in the new subsection (1A)(a) and (b).

Article 3(4) inserts into section 147 new subsections (4A) to (4F) (optional alternatives to subsection (4) requirements). The new subsection (4A) permits a person to send an electronic communication to the insurer as a means of surrendering his certificate of insurance. The new subsection (4B) permits a person to send an electronic communication to the insurer instead of making a statutory declaration where the certificate has been lost or destroyed. The new subsections (4C) and (4D) impose requirements on the person by whom the policy was effected where the certificate is treated by the new subsection (1A) as having been delivered to him under section 147. If he complies with those requirements, he is to be treated by virtue of the new subsection (4E) as having surrendered the certificate.

Article 3(5) amends section 147(5) (offence of failing to surrender a certificate or make a statutory declaration) so that failure to comply with the new subsection (4D) is also an offence.

Article 4 amends section 152 (exceptions to duty of insurers or persons giving security to satisfy judgment against persons insured or secured against third-party risks) to exclude from the references to a statutory declaration, certificates which are delivered as described in the new subsection (1A).

Article 5 amends section 160(2) (power to make regulations) so that the reference to “records” is not restricted to “records of documents” and to ensure that the power to make regulations applies in relation to the new permitted modes of delivery mentioned in subsection (1A).

Article 6 makes consequential amendments to section 165. This sets out what may be produced to the police as evidence that a motor vehicle is not or was not being driven in contravention of section 143 of the 1988 Act (formerly section 143 of the 1972 Act).

The amendments to the 1972 regulations are as follows.

Article 8 makes consequential amendments to the interpretation provisions in regulation 4.

Articles 9 and 13 amend regulation 5, and Part 2 of the schedule, to provide for content of certificates of insurance delivered by electronic means.

Article 10 amends regulation 9 so that paragraph (1)(a) (production of the certificate to the Secretary of State on an application for a vehicle excise licence) does not apply in the case of a certificate of insurance delivered by electronic means. Provision is made instead (new sub-paragraph (aa)) for a legible printed copy of the electronically-delivered certificate to be produced to the Secretary of State.

Article 11 amends regulation 12(1) and (2) so that provisions relating to return and to loss and destruction of certificates of insurance do not apply in the case of a certificate delivered by electronic means.

Article 12 amends regulation 13 so that the requirement to issue a fresh certificate where the certificate has been defaced, lost or destroyed does not apply in the case of a certificate of insurance delivered by electronic means.

An impact assessment has not been produced as no adverse impact on the costs of the private or voluntary sectors is foreseen.