COMPULSORY INSURANCES

In the UK, Govt acts as an insurer in it's own right by providing certain benefits for individuals. 

UK Govt have made certain insurances compulsory through legislation to protect innocent victims. 

Private individuals = motor insurance and public liability insurance in respect to dangerous animals. 

Professions and businesses = motor insurance, employer's liability, public liability, marine pollution liability etc. 

WHY?

1. to provide funds for compensation

2. in response to national concerns.

EMPLOYER'S LIABILITY INSURANCE

The EL Act made it compulsory. 

-Insures against their liability to pay compensation to employees who sustain bodily injury/disease arising from employment.

-Minimum required limit of indemnity is 5m.

-No certificates needed.

MOTOR INSURANCE

The Road Traffic Act 1988 makes it compulsory.

-Insurance certificates must still be delivered to policyholders…