Glossary

Motor Please use the alphabetical links below to quickly jump to a glossary entry. A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z

C

Cross Liabilities Clause
Where more than one party is indemnified under the policy the cover provided by the policy applies separately to each party.

Indemnity to Principals
Where any contract or agreement the insured has entered into with a “principal” so requires, the benefits of the policy apply jointly to the Insured and the principal. This is because a principal will normally be vicariously liable for the acts / omissions of its agent. Vicarious Liability is the liability of one person for the acts or omissions of another. In most cases the plaintiff is free to sue both parties. If the plaintiff sues the principal for an act/ omission perpetrated by the Insured, the policy will respond. There are 3 main categories of vicarious liability, all based upon the relationship between the parties:-

- Employer/ Employee

- Principal/ agent

- Principal/ Independent Contractor

M

Manslaughter Defence Costs
The policy extends to cover reasonable costs (incurred only with the written consent of the Insurers) for defending of the Insured Person (driver) in the event of legal proceedings against them for manslaughter or reckless driving.

Medical Expenses
The policy pays up to a given limit per person for Medical Expenses incurred by the driver or any passenger of the Insured vehicle, for bodily injury sustained during an accident in the Insured Vehicle.

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T

Third Party Contingent Liability Cover
The policy Indemnifies the Insured for their Legal Liability in respect of the use of any vehicle which does not actually belong to the Insured but it is being used by any employee of the Insured on the Insured’s business. This cover comes into play, for any reason, there is no other insurance covering the same legal liability. For example, where an employee uses their own vehicle on company business and does not have “business use” cover under their own policy and the company is sued because they injure a Third Party whilst on Company Business. This addition to cover is not as extensive as “Occasional Business Use” cover (which can be purchased separately) as it is designed to be a “sleep easy” cover.

U

Unauthorised Movement Cover
Cover is provided for the Insured’s Legal Liability for injury/property damage caused to Third Parties as a result of the Insured moving a vehicle which belongs to a Third Party, without their consent. For example, where a Third Party vehicle blocks the Insured’s entrance, and in moving the vehicle out of the way, the Insured injures another Third Party.

Unauthorised Use Clause
Cover extends to include cases where an accident occurs whilst an Insured vehicle is being used / driven for a “use” not permitted under the policy, without the knowledge or consent of the Insured, provided that the Insured has taken every opportunity to ensure that all persons who use or are likely to use the vehicle are made aware of the Insured “uses” permitted under the policy.

Unlicensed Drivers Cover
The requirement of the Certificate of Motor Insurance that the driver must hold a driving licence or have held and not be disqualified from holding or obtaining such a licence does not apply in circumstances where a licence to drive is not required by law.

Provided always that:-

• The terms of the Certificate of Motor Insurance shall otherwise apply; 
• in respect of an Insured Vehicle the person driving is of an age to hold a licence to drive the Insured Vehicle on the road.

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