SCHEDULE 2 - Provisions as to Permitted Out-Of-State Vehicles

Section 19

1.    In this Schedule, references to the motor vehicle shall be construed as references to any motor vehicle to which this Schedule applies and, in relation to such a motor vehicle, the policy means the third party insurance policy by virtue of which this Schedule applies to that motor vehicle, and the insurer means the insurer under that policy.

2.   

(1) Subject to this paragraph, the Board is not bound to indemnify a person in respect of any liability incurred by him as the person owning or using the motor vehicle.

(2) Section 16 has effect in relation to the motor vehicle as if the Board were bound, in accordance with Part III , to indemnify the person owning or using it in respect of liabilities incurred by him, but where the Board has made payments under that section in respect of such a liability the Board may recover the amount of those payments from the insurer under the policy that was in force at the time of the accident giving rise to the liability.

(3) Where the damages in respect of which the insurer is bound to indemnify any person are reduced by virtue of section 27 the Board may recover from the insurer as a debt due to it the amount by which those damages are so reduced.

3.   

(1) Subject to this Schedule, nothing in Part III prejudices or affects the operation of the policy in force in respect of the motor vehicle.

(2) Notwithstanding any other law or rule of law to the contrary the insurer under the policy is liable to indemnify –

(a) the owner for the time being of the motor vehicle;

(b) any other person who, at any time during the currency of the policy, and whether with or without the authority or acquiescence of the owner thereof, uses the motor vehicle; and

(c) the personal representatives of any such person as is referred to in clause (a) or clause (b) –

in respect of any liability that the policy purports to cover.

(3) No condition in the policy that provides –

(a) for the avoidance of any liability thereunder on the ground of misrepresentation or breach of any condition precedent; or

(b) that no liability shall arise under the policy, or that any liability so arising shall cease, in the event of any act or omission on the part of any person after an occurrence that would otherwise give rise to that liability –

shall have the effect of relieving the insurer of any obligations otherwise imposed by the policy.

(4) Subject to subparagraph (5) nothing in this paragraph prejudices or affects the right of an insurer –

(a) to cancel any policy of insurance in conformity with any condition contained therein; or

(b) to recover from the insured, in accordance with any condition in the policy, any moneys which the insurer has been required to pay, and has paid, in pursuance of the policy.

(5) Notwithstanding anything in the foregoing provisions of this paragraph, or in the policy of insurance, no cancellation of the policy is of any effect until the expiration of 21 days after notice thereof has been served on the Board and on the insured, either personally or by registered post.

4.    Sections 15 , 17 , and 18 apply in relation to the insurer under the policy as they apply in relation to the Board as if the rights and obligations arising under the policy were rights and obligations arising under Part III .