Road Traffic Act 1988

157 Payment for hospital treatment of traffic casualties

(1) Subject to subsection (2) below, where—

(a) a payment, other than a payment under section 158 of this Act, is made (whether or not with an admission of liability) in respect of the death of, or bodily injury to, any person arising out of the use of a motor vehicle on a road or in a place to which the public have a right of access, and

(b) the payment is made—

(i) by an authorised insurer, the payment being made under or in consequence of a policy issued under section 145 of this Act, or

(ii) by the owner of a vehicle in relation to the use of which a security under this Part of this Act is in force, or

(iii) by the owner of a vehicle who has made a deposit under this Part of this Act, and

(c) the person who has so died or been bodily injured has to the knowledge of the insurer or owner, as the case may be, received treatment at a hospital, whether as an in-patient or as an out-patient, in respect of the injury so arising,

the insurer or owner must pay the expenses reasonably incurred by the hospital in affording the treatment, after deducting from the expenses any moneys actually received in payment of a specific charge for the treatment, not being moneys received under any contributory scheme.

(2) The amount to be paid shall not exceed £2,000.37 for each person treated as an in-patient or £200.04 for each person treated as an out-patient.

(3) For the purposes of this section “expenses reasonably incurred” means—

(a) in relation to a person who receives treatment at a hospital as an in-patient, an amount for each day he is maintained in the hospital representing the average daily cost, for each in-patient, of the maintenance of the hospital and the staff of the hospital and the maintenance and treatment of the in-patients in the hospital, and

(b) in relation to a person who receives treatment at a hospital as an out-patient, reasonable expenses actually incurred.