Miscellaneous and general

Liability of insurersI116

1

If a compensation payment is made in a case where—

a

a person is liable to any extent in respect of the injury, and

b

the liability is covered to any extent by a policy of insurance,

the policy is also to be treated as covering any liability of that person under Article 3(2).

2

Liability imposed on the insurer by paragraph (1) cannot be excluded or restricted.

3

For that purpose excluding or restricting liability includes—

a

making the liability or its enforcement subject to restrictive or onerous conditions,

b

excluding or restricting any right or remedy in respect of the liability, or subjecting a person to any prejudice in consequence of his pursuing any such right or remedy, or

c

excluding or restricting rules of evidence or procedure.

4

Regulations may in prescribed cases limit the amount of the liability imposed on the insurer by paragraph (1).

5

This Article applies in relation to policies of insurance issued before (as well as those issued after) the date on which it comes into operation.

6

References in this Article to policies of insurance and their issue include references to contracts of insurance and their making.