Regulation 10 Liability of insurers
Where—
(a)
a policy of insurance is treated under section 164(1) as covering a person’s liability under section 150(2) (liability to pay NHS charges);
(b)
under that policy of insurance the amount of cover in respect of the injury is limited to, or by reference to—
(i)
a maximum sum, or
(ii)
a proportion of the compensation which the insured person is liable to pay in respect of the injury; and
(c)
in consequence of the limitation, a proportion of the compensation which the insured person is liable to pay in respect of the injury would not be covered by the policy but for section 164(1),
the liability imposed on the insurer by section 164(1) shall be reduced by the same proportion as their liability for the compensation payment.