History of Motor Insurance

By the end of the First World War (1918) people were returning from the conflict with an interest to
continue their driving experience. Even at this stage in time, no compulsory requirement for motor
insurance existed.
1920s’ there were so many motor vehicles on the land that legislation was almost invisible
and in 1930 the Road Traffic Act 1930 was passed. The intention of the act, inter alias, was to
ensure that funds would be available to compensate the innocent victims of motor accidents.
This was to be provided by means of insurance against legal liability to pay damages to
injured persons. The insurance requirement applied to all users of motor vehicles, except
where some special legal arrangement is in force. Further legislation followed in the Road
Traffic act 1960, the Motor vehicles Act 1972 and the Road Traffic Act 1974 so that today
insurance must be in force to cover legal liability to pay damages to any person, including
others in the car, arising out injury. The compulsory insurance requirement was extended
under the Road Traffic Act 1998 to include the owners of property damaged in road accidents