MOTOR VEHICLE (THIRD PARTY INSURANCE) ACT 1943 - SECT 20
MOTOR VEHICLE (THIRD PARTY INSURANCE) ACT 1943 - SECT 20
20 . Policy of insurance to continue notwithstanding change of ownership of vehicle
(1) Notwithstanding
any agreement to the contrary, a policy of insurance issued under and for the
purposes of this Act —
(a)
shall not be deemed to be cancelled or otherwise deemed to terminate solely by
reason of a change of ownership of the vehicle in relation to which the policy
was issued; but
(b)
shall, subject to any lawful termination thereof, enure in favour of every
person who, during the period for which the policy was granted or renewed,
becomes an owner for the time being of the vehicle in relation to which the
policy was issued and in favour of every person who during that period drives
that vehicle whether with or without the consent of the owner.
(2) So long as a
policy of insurance is in force as aforesaid every owner of the vehicle in
relation to which the policy was issued (whether originally a party to the
policy or not), and every person who during that period drives the vehicle
whether with or without the consent of the owner shall be bound by all the
terms, warranties and conditions in the policy as if he had expressly agreed
to them.
[Section 20 2 inserted as s. 19A: No. 40 of 1944
s. 7; amended: No. 36 of 1954 s. 7.]