Textual Amendments
F1Sch. 7A inserted (1.10.1994) by S.I. 1994/1698, art. 5
3(1)A contract falls within this paragraph if it relates only to a motor vehicle and the conditions mentioned in sub-paragraph (2) below are satisfied.
(2)The conditions referred to in sub-paragraph (1) above are that—
(a)the vehicle is used, or intended for use, by a handicapped person in receipt of a disability living allowance by virtue of entitlement to the mobility component or of a mobility supplement;
(b)the insured lets such vehicles on hire to such persons in the course of a business consisting predominantly of the provision of motor vehicles to such persons; and
(c)the insured does not in the course of the business let such vehicles on hire to such persons on terms other than qualifying terms.
(3)For the purposes of sub-paragraph (2)(c) above a vehicle is let on qualifying terms to a person (the lessee) if the consideration for the letting consists wholly or partly of sums paid to the insured by—
(a)the Department of Social Security;
(b)the Department of Health and Social Services for Northern Ireland; or
(c)the Ministry of Defence,
on behalf of the lessee in respect of the disability living allowance or mobility supplement to which the lessee is entitled.
(4)For the purposes of this paragraph—
(a)“handicapped” means chronically sick or disabled;
(b)“disability living allowance” means a disability living allowance within the meaning of section 71 of the Social Security Contributions and Benefits Act 1992 M1 or section 71 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 M2;
(c)“mobility supplement” means a mobility supplement within the meaning of article 26A of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 1983 M3, article 25A of the Personal Injuries (Civilians) Scheme 1983 M4, article 3 of the Motor Vehicles (Exemption from Vehicles Excise Duty) Order 1985 M5 or article 3 of the Motor Vehicles (Exemption from Vehicles Excise Duty) (Northern Ireland) Order 1985 M6.
Marginal Citations
M3S.I. 1983/883; article 26A was inserted by S.I. 1983/1116, and has been amended by S.I. 1983/1521, 1986/592 and 1990/1308.
M4S.I. 1983/686; article 25A was inserted by S.I. 1983/1164, and has been amended by S.I. 1983/1540, 1986/628, 1990/1300 and 1992/702.