Section 5
of Motor Vehicles Insurance (Third Party Risks) Act
Section 5
(1)
In order to comply with the requirements of this Act, a security must —
(a)
be given either by an insurer approved by the Authority or by some body of persons approved by the Authority which carries on the business of giving securities of a like kind but, if the insurer or such
Motor Vehicles Insurance
(Third Party Risks)
8
body of persons do not reside within Brunei Darussalam, no such approval shall be given unless the Authority is satisfied that the insurer or such body of persons has complied with the provisions of section 18(1) and (2); and
(b)
consist of an undertaking by the giver of the security to make good subject to any conditions specified therein and up to the amount in the case of an undertaking relating to the use of motor vehicles in which passengers are carried for hire or reward of not less than
$225,000 and in any other case of not less than $45,000 and any failure by the owner of the vehicle or such other persons or classes of persons as may be specified in the security duly to discharge any such liability as is required to be covered by a policy of insurance under section 4
which may be incurred by him or them.
(2)
A security shall be of no effect for the purposes of this Act unless and until there is issued by the person giving the security to the person to whom it is given a certificate (referred to in this Act as a certificate of security) in the prescribed form and containing such particulars of any conditions subject to which the security is issued and of any other matters as may be prescribed, and different forms and different particulars may be prescribed in relation to different cases or circumstances.
Certain conditions to policies or securities to be of no effect.