Motor vehicle insurance

The statutory tort in Monk v Warbey

Section 143 of the Road Traffic Act 1988 requires any person who uses a motor vehicle, or who causes or permits the use of a motor vehicle, to take out liability insurance against death, personal injury and property damage, failing which a criminal offence is committed. It was held in Monk v Warbey [1935] 1 KB 75 that the obligation to insure is one which gives rise to a statutory duty, so that failure to insure is tortious. If, therefore, there is no insurance and the user incurs liability to a third party, both the user and the person who caused or permitted the uninsured use have committed a statutory tort. This is of no significance as regards the user, who is in any event liable to the third party for the damage caused. The significance of Monk v Warbey is, therefore, to impose additional civil liability on the person causing or permitting uninsured use, so that if the user is impecunious the third party may nevertheless have a fallback action. Monk v Warbey is these days of little significance, as the third party will have a claim against the Motor Insurers’ Bureau. In Bretton v Hancock [2005] Lloyd’s Rep IR 454 there was an unsuccessful attempt in unusual circumstances to extend Monk v Warbey to a claim for pure economic loss.