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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 within the meaning of this Act if, but only if, it complies with all the following conditions, that is to say:—
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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; and
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(b) the vehicle 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 (other than the excepted persons as defined in this Act) whether by way of damages or costs on account of injury to person or property occasioned by the negligent driving during the period (in this Act referred to as the period of cover) specified in that behalf in such policy of a mechanically propelled vehicle to which such policy relates by the insured or by any of such other persons (if any) as are mentioned in that behalf in such policy; and
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(c) the liability of the insurer under the policy is not subject to any condition, restriction, or limitation, which is prescribed as a condition, restriction, or limitation (as the case may be) which shall not 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 all the conditions set forth in the foregoing sub-section 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 thereby effected being subject to the following limitation and the following exception or either of them, that is to say:—
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(a) the limitation of such insurance, 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, and
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(b) the exception from such insurance 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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