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This is the original version (as it was originally enacted).
(1)To the extent that a policy or security issued or given for the purposes of this Part of this Act—
(a)restricts the insurance of the persons insured by the policy or the operation of the security (as the case may be) to use of the vehicle for specified purposes (for example, social, domestic and pleasure purposes) of a non-commercial character, or
(b)excludes from that insurance or the operation of the security (as the case may be)—
(i)use of the vehicle for hire or reward, or
(ii)business or commercial use of the vehicle, or
(iii)use of the vehicle for specified purposes of a business or commercial character,
then, for the purposes of that policy or security so far as it relates to such liabilities as are required to be covered by a policy under section 145 of this Act, the use of a vehicle on a journey in the course of which one or more passengers are carried at separate fares shall, if the conditions specified in subsection (2) below are satisfied, be treated as falling within that restriction or as not falling within that exclusion (as the case may be).
(2)The conditions referred to in subsection (1) above are—
(a)the vehicle is not adapted to carry more than eight passengers and is not a motor cycle,
(b)the fare or aggregate of the fares paid in respect of the journey does not exceed the amount of the running costs of the vehicle for the journey (which for the purposes of this paragraph shall be taken to include an appropriate amount in respect of depreciation and general wear), and
(c)the arrangements for the payment of fares by the passenger or passengers carried at separate fares were made before the journey began.
(3)Subsections (1) and (2) above apply however the restrictions or exclusions described in subsection (1) are framed or worded.
(4)In subsections (1) and (2) above “fare” and “separate fares” have the same meaning as in section 1(4) of the [1981 c. 14.] Public Passenger Vehicles Act 1981.
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