I beg to move, in page 7, line 15, to leave out from "liability" to "covered" in line 16.
This Amendment goes with my next Amendment—in page 9, line 10, at the end, to insert:
and the expression 'liability covered by the terms of the policy' means a liability which is covered by the policy or which would be so covered but for the fact that the insurer is entitled to avoid or cancel, or has avoided or cancelled, the policy.
The object is to make quite clear the conditions under which liability arises. As the Bill stands, it was felt that it might be said that no liability arose because conditions were inserted in the policy which avoided liability in particular circumstances, but which, owing to a subsequent Clause in the Bill, are not allowed to be pleaded as against the injured third party. These Amendments will make the intention of the Clause quite clear.
§ 11.14 a.m.
§ Mr. TURTON
I should like to ask the Minister if he could reconsider Clause 7 on account of this point, and also Clause 9, when the Bill is in another place? I would suggest that it will not be quite so clear as he confidently says it will be. One of the difficulties that now arise is that a definition is given of the words "liability to be covered by a policy," 1454 which is limited to the usual meaning, while in the line above the phrase is "the liability that is required to be covered by a policy," which means something quite different. I believe that here there is very good scope for the Second Chamber as a revising Chamber. This Clause really means little without the application of Clause 9. Perhaps if the Minister could in another place get Clauses 7 and 9 welded into one clear, comprehensive Clause it would be to the advantage of the Act.
I do not agree that there is any obscurity, but, of course, it will be quite possible, when the House has disposed of all the insurance Clauses, to look at this in the light of the final decision of the House and see if any better wording can be adopted in another place.
§ Amendment agreed to.
Further Amendment made: In page 9, line 10, at the end, insert:
and the expression 'liability covered by the terms of the policy' means a liability which is covered by the policy or which would be so covered but for the fact that the insurer is entitled to avoid or cancel, or has avoided or cancelled, the policy."—[Mr. Stanley.]