Part 1: Automated vehicles: Liability of insurers etc. Chapter 1: Policy Background Section 2: Liability of insurers etc. where accident caused by automated vehicle
Section 2(1) places first instance liability on the insurer for an accident caused by an automated vehicle on a road or other public place in Great Britain if the vehicle is insured. Subsection (2) also places the same liability on certain types of owners where the vehicle is not insured due to being exempt from compulsory third party insurance under Section 144(2) of the Road Traffic Act 1988 (such as in the case of vehicles owned by a local authority, a police body, a health authority or NHS trust). As compared with the compulsory insurance cover for conventional vehicles under Section 145 of the Road Traffic Act 1988, the insurer’s liability under subsection (1) is widened to include damage (as defined in subsection (3)) to the driver where the automated vehicle is driving itself.
	Subsection (6) provides that the liability on the insurer cannot be limited, except when Section 4 applies. Subsection (7) ensures that the liability imposed on the insurer by this Section does not undermine their right of recovery from parties who are responsible for an accident.