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b) the loading or unloading of any mechanically propelled vehicle or trailer when carried out
beyond the limits of any carriageway or thoroughfare but this extension shall not apply to
damage to any property being loaded or unloaded;
c) the movement of any mechanically propelled vehicle not owned, hired or borrowed by or
leased to the public authority or any other insured party on or under any premises
occupied by the public authority where such vehicle is causing an obstruction and
interfering with the performance of the business;
d) damage to visitors’ or employees’ mechanically propelled vehicle (including contents
and/or accessories) while parked within any car park for which the public authority is
responsible or on any premises occupied by the public authority provided that:
i) such vehicle is not lent or hired to the public authority;
ii) the damage to an employee’s vehicle does not arise out of the maintenance,
operation or use of a vehicle by that employee;
e) the unauthorised use of any mechanically propelled vehicle by any person in the
employment of the public authority provided that the public authority shall have taken
all reasonable precautions to ensure that its employees are made aware of and comply
with restrictions applicable to the use of the vehicle;
f) the servicing, maintenance and testing of Hackney Carriages or other mechanically
propelled vehicles used for private hire, but excluding any expenditure incurred for any
repair, adjustment, alteration, reinstatement, withdrawal or replacement required as a
result of any defect in the work.
6.8.2 except always that the indemnity provided by this clause excludes liability:
a) for which indemnity is provided by any motor insurance or fleet insurance policy held in
the name of the public authority; or
b) for which insurance is necessary to comply with the Road Traffic Act 1988 as amended
by The Motor Vehicles (Compulsory Insurance) Regulations 1992 or any alteration to
such regulations or any similar legislation applying to Northern Ireland, the Isle of Man or
the Channel Islands or to any other territory consequent on the Third Council Directive
90/232/EEC of 14/05/1990 relating to insurance against civil liability in respect of the use
of motor vehicles or similar legislation in any country outside the European Union, or in
circumstances where such insurance or security would have been required but for the
public authority being exempted from such requirements under the terms of the
legislation.
6.9 Motor contingent liability
Notwithstanding the exclusion ‘Ownership or use of mechanically propelled vehicles’, the
insurer agrees to indemnify the public authority in respect of liability arising out of or from
the operation or use of any mechanically propelled vehicle not owned, hired or borrowed by
or leased to the insured which is used in the course of business provided that this clause
excludes and the insurer will not be liable for:
a) damage to such vehicle or to property conveyed therein or thereon,
b) bodily injury or damage arising while such vehicle is being driven by;
i) any person other than an employee or member; or
ii) any person who to the insured’s knowledge or the knowledge of any member,
director, officer or manager of the insured, does not hold a licence to drive such
vehicle;
c) bodily injury or damage caused or arising while such vehicle is:
i) engaged in racing, pace-making, reliability trials or speed testing;
ii) being used outside the European Union;
d) bodily injury or damage in respect of which the insured is entitled to indemnity under
any other insurance.
6.10 Motor trade liability

The insurer will indemnify the the public authority in respect of liability arising out of or
from the servicing, repair, maintenance and testing of motor vehicles not belonging to or

PPBL010121 Public Authority Combined Liability Insurance Policy (UK) Page 18 of 48