Road Traffic (Northern Ireland) Order 1981

Certain conditions in policies or securities to be of no effectN.I.

94.—(1) If, in any policy or security issued or given for the purposes of this Part, there is inserted—

(a)a condition providing that no liability shall arise under the policy or security, or that any liability so arising shall cease, in the event of some specified thing being done or omitted to be done after the happening of the event giving rise to a claim under the policy or security; or

(b)any condition, restriction or limitation which is prescribed as a condition, restriction or limitation, as the case may be, which shall not be inserted in such a policy or security,

such condition, restriction or limitation shall, subject to paragraph (2), be of no effect in connection with such liabilities as are required to be covered by a policy under Article 92 or by a security under Article 93.

(2) Nothing in this Article shall be taken to render void any provision in a policy or security requiring the person insured or secured to repay to the insurer or giver of the security any sums which the latter may have become liable to pay under the policy or security and which have been applied to the satisfaction of the claims of third-parties

[F1(3) To the extent that a policy or security issued or given for the purposes of this Part—

(a)restricts, as the case may be, the insurance of the persons insured by the policy or the operation of the security to use of the vehicle for specified purposes (for example, social, domestic and pleasure purposes) of a non-commercial character; or

(b)excludes from, as the case may be, that insurance or the operation of the security—

(i)use of the vehicle for hire or reward;

(ii)business or commercial use of the vehicle; or

(iii)use of the vehicle for specified purposes of a business or commercial character,

then, for the purposes of that policy or security so far as it relates to such liabilities as are required to be covered by a policy under Article 92, the use of a vehicle on a journey in the course of which one or more passengers are carried for payment shall[F2 if the motor vehicle is used under a permit granted under section 10A of the Transport Act (Northern Ireland) 1967 or], if the conditions set out in Article 66A (2) are satisfied and the vehicle is not a motor cycle, be treated as falling within that restriction or not falling within that exclusion, as the case may be.

(4) Paragraph (3) shall have effect however the restrictions or exclusions described in that paragraph are framed or worded.

(5) In paragraph (3) “"payment”” has the same meaning as in Article 66A (3).]