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Approved policy of insurance.
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62.—(1) A policy of insurance shall be an approved policy of insurance for the purposes of this Act if, but only if, it complies with the following conditions:
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(a) it is issued by a vehicle insurer to a person (in this Act referred to as the insured) named therein;
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(b) the insurer by whom it is issued binds himself by it to insure the insured against all sums without limit which the insured or his personal representative shall become liable to pay to any person (exclusive of the excepted persons) whether by way of damages or costs on account of injury to person or property caused by the negligent use, during the period (in this Act referred to as the period of cover) specified in that behalf in the policy, of a mechanically propelled vehicle to which the policy relates, by the insured or by any of such other persons (if any) as are mentioned or otherwise indicated in that behalf in the policy;
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(c) the liability of the insurer under the policy is not subject to any condition, restriction, or limitation prescribed as not to be inserted in an approved policy of insurance; and
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(d) the period of cover is not capable of being terminated before its expiration by effluxion of time by the insurer save either with the consent of the insured or after seven days' notice in writing to the insured.
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(2) A policy of insurance which complies with the conditions specified in subsection (1) of this section shall not be prevented from being an approved policy of insurance merely by reason of its containing provisions additional to and not inconsistent with the provisions required by those conditions.
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(3) A policy of insurance shall not be prevented from being an approved policy of insurance merely by reason of the insurance being subject to the following limitation and the following exception or either of them:
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(a) the limitation thereof, in so far as it relates to injury to property, to the sum of one thousand pounds in respect of injury occasioned by any one act of negligence or any one series of acts of negligence collectively constituting one event,
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(b) the exception therefrom of any liability (in excess of the common law or the statutory liability applicable to the case) undertaken by the insured by special contract.
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