HC Deb 30 October 1975 vol 898 cc1865-8
Mr. Moate

I beg to move Amendment No. 6, in page 6, line 23, leave out 'aviation and transport' and insert 'and aviation'.

The effect of the amendment would be to extend the right to compensation to a policyholder who was carrying out or who actually had transport insurance. I hasten to add that my intention is not to extend the policy in this way but primarily to obtain clarification of the meaning of the words.

As I understand it, at present the Bill is designed to offer compensation only to private policyholders. It excludes corporate bodies and reinsurance contracts. It also excludes marine, aviation and transport insurance business. It would be helpful to know what "transport" means. The phrase "marine, aviation and transport" has been used frequently during debates and has become almost popularised by the abbreviation "MAT". However, as merely a practitioner of insurance I do not know what is meant in the Bill by "transport". It may be some esoteric term or a category of return made by insurance companies to the Department, but I do not think that it means what the general public understand it to mean. Clearly it does not mean private cars or commercial vehicles, because they are specifically included in the legislation. Presumably a private policyholder who has a commercial or passenger vehicle for transport purposes would be covered.

However, there is an anomalous situation. If a private person runs a lorry in his own name he could be compensated by the Bill, but if he puts his lorry in the name of a limited company—as many people do—he would not be so compensated. That is one of the anomalies of the Bill.

What is "transport" if it is not commercial vehicles? I presume that it could mean inland transit insurance, or insurance of goods in transit, but that is usually covered by the marine department and by the term "marine". Therefore, I should have thought that it would be covered by "marine, aviation".

I ask the Minister whether he can tell us the meaning of the word "transport".

The Under-Secretary of Stale for Trade (Mr. Eric Deakins)

The hon. Gentleman said that he seeks clarification. Marine, aviation and transport are not three distinct business, but a single class. They are defined in Section 83(4) of the Insurance Companies Act 1974, which provides. In this Act 'marine, aviation and transport insurance business' means, subject to subsection (9) below, the business of effecting and carrying out contracts of insurance". There are a number of paragraphs. Paragraph (c) states: upon the freight of, or any other interest in or relating to, vessels or aircraft… (f) against transit risks (whether the transit is by sea, inland water, land or air, or partly one and partly another), including risks incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance". In addition, "motor vehicle insurance business" is defined separately in Section 83(5) of the 1974 Act. That refers to what we normally mean by motor vehicle insurance—cars, and so on, on the road. I hope that explanation satisfies the hon. Gentleman.

Mr. Moate

I thank the Minister for his helpful explanation. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn

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