ABSTRACT
This chapter aims to grant protection for those who sustain injury or damage caused by the use of a motor vehicle on a road or in a public place by providing for compulsory insurance in respect of third party risks. Each Member State shall take all appropriate measures to ensure that the insurance cover includes any loss or injury occurs in another Member State. The contract of insurance is constituted by and contained in the policy. A driver may be asked by a police constable to produce a certificate proving that the driver is covered by the required insurance. The Court recognised that the obligation to contract restricts the freedom of establishment and the freedom to provide services which economic operators, in principle, enjoy. The excepted institutions or body of authorities under section 144 may nevertheless take out compulsory motor vehicle insurance. A contract which is voidable may be enforced between the parties until it is avoided.
