§ 47. Mr. Tuckasked the President of the Board of Trade what steps he will take to ensure that the law which obliges motorists to have third party insurance is not rendered nugatory by the failure of the insurance companies concerned.
§ Mr. JayThe Road Traffic Act, 1960, requires motorists to insure against their liability to third parties for death or bodily injury. Since 1946, such third parties have been protected by an agreement between the Minister of Transport and the Motor Insurers' Bureau, under which, and subject to its terms, the Bureau undertakes to pay awards to them which are not satisfied within 7 days.
I hope that the provisions relating to insurance companies in the Companies Bill will significantly reduce the risk of failure of insurance companies.