(1)  By virtue of this Act, but subject to and in accordance with the provisions thereof, the Board is bound to indemnify an owner or user of a motor vehicle, or his legal personal representatives, in respect of any liability (not being a contractual liability) incurred by him in respect of the personal injury to a person resulting directly from a motor accident involving that motor vehicle in this State on or after the appointed day.

(2)  Where a person has incurred, in respect of a personal injury, a liability to which subsection (1) extends that subsection shall be deemed also to extend to any liability of that person to indemnify, or make contribution to, any other person in respect of any damages or compensation required to be paid by that other person in respect of that personal injury.

(2A)  Subsection (1) does not apply where the motor accident which resulted in the personal injury has not been reported to a police officer unless the Board determines that in the circumstances the failure to so report the motor accident should be excused.

(3)  Subsection (1) does not apply to any liability in respect of which –

(a) a policy of insurance is required to be maintained under section 97 (1) of the Workers Rehabilitation and Compensation Act 1988 ; or

(b) a policy of insurance would be required to be maintained by an employer under section 97 (1) of the Workers Rehabilitation and Compensation Act 1988 but for the fact that the employer is a self-insurer within the meaning of that Act; or

(c) a policy of insurance would be required to be maintained by an employer under section 97 (1) of the Workers Rehabilitation and Compensation Act 1988 but for the fact that the employer is the Crown or an Agency or public statutory body referred to in section 97 (9) of that Act .

(3A)  Subsection (1) does not apply to any liability in relation to the contraction by a person of an asbestos-related disease, within the meaning of the Asbestos-Related Diseases (Occupational Exposure) Compensation Act 2011 , if the person is entitled to compensation under that Act in relation to the contraction by the person of that disease.

(4)  Subsection (1) does not apply to –

(a) any liability in respect of the personal injury to a person taking part in a motor vehicle race resulting directly from a motor accident involving a motor vehicle taking part in that race; and

(b) any liability in respect of which an insurance policy has been taken out for the purposes of section 49 of the Police Offences Act 1935 ; and

(c) any liability in respect of the personal injury to a person resulting directly from a motor accident involving a motor vehicle that at the time of the accident was being used for the actual doing of an act, or making of a threat, that is an act of terrorism.

(4A)  Where the Board is under this section bound to indemnify a person in respect of a liability, it has, to the exclusion of that person, the rights of contribution or indemnity in respect of that liability as were vested in that person.

(4B)  If –

(a) both an indemnifiable person and a non-indemnifiable person are liable in respect of the personal injury that gave rise to the Board's obligation to indemnify the indemnifiable person; and

(b) the liability of either or both of those persons arises otherwise than as the result of a tort –

the Board has, in respect of any payments it is liable to make in or towards the indemnity, the same rights of contribution or indemnity against the non-indemnifiable person as the indemnifiable person would have had under the Wrongs Act 1954 had the liability of both the indemnifiable person and the non-indemnifiable person arisen as a result of a tort.

(4C)  The Board may exercise the rights referred to in subsection (4B) by taking proceedings to recover contribution in its own name or the name of the indemnifiable person.

(4D)  In subsections (4B) and (4C)  –

indemnifiable person means a person the Board is bound to indemnify under this section;

non-indemnifiable person means a person the Board is not bound to indemnify under this section.

(5)  For the purposes of this Part a liability to pay damages includes any liability to pay costs in connection with any proceedings taken in respect of the recovery thereof.

(6)  For the purposes of this Part, the Board is not bound to pay exemplary or punitive damages claimed against –

(a) an indemnifiable person; or

(b) the Board.